Swiss Xstrata signs 4.2-billion-dollar copper deal with Peru

3rd September 2010, Comments 0 comments

Switzerland's Xstrata mining group and Lima Thursday signed a 4.2-billion-dollar deal to develop a copper mine in southeastern Peru, said President Alan Garcia.

"This is a historic day. This is the contract of the century," Garcia said of the deal expected to create 1,350 permanent jobs and yield 400,000 tons of copper concentrate and byproducts, including gold and silver, per year.

Xstrata's Las Bambas mining project covers a 35,000-hectare (86,500-acre) area in the Apurimac region 800 kilometers (500 miles) southeast of Lima. Work at the site is slated to begin in late 2011, with full production expected three years later.

The Swiss company won an international bid for the mining contract in 2004.

Garcia said Xstrata was a modern, environmentally responsible company that will generate employment and revenue that will go to help Peru's more needy regions.

© 2010 AFP

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