Pan Pacific Copper Co., Ltd. (head office: Otemachi 2-chome, Chiyoda-ku, Tokyo; president: Yoshimasa Adachi), an integrated copper enterprise jointly established by JX Nippon Mining & Metals Corporation (head office: Otemachi 2-chome, Chiyoda-ku, Tokyo; president: Yoshimasa Adachi) and Mitsui Mining & Smelting Co., Ltd. (head office: Osaki 1-chome, Shinagawa-ku, Tokyo; president: Sadao Senda), and Mitsui & Co., Ltd. (head office: 2-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo; president and CEO: Masami Iijima) announce the latest status of the Caserones Copper and Molybdenum Deposit Development Project in Chile (hereinafter "the Project") as follows.
The Project is currently in the final construction stage and efforts are being made toward the early completion of the construction and start of copper concentrates production.
- Future Prospects
(1) Commencement of copper concentrates production: January 2014
(2) Initial capital expenditure to the commencement of copper concentrate production: Approximately US$4.2 billion *
* Future funding shall be provided to SCM Minera Lumina Copper Chile (head office: Santiago, Chile), the project company, through the investment and loans from its shareholders. The respective shareholder's contribution amount of the future funding and ratio of investments to loans are to be decided among the shareholders.
- Background for the above Prospects
Impacts on construction due to the following factors, as well as measures taken to avoid further construction delays
- Difficulty due to worse bedrock conditions than anticipated.
- Shortage of construction workers and rising labor costs due to the development and expansion of large mining projects concurrently running in Chile.
- Effects of development interruption due to the labor strike for better working conditions and bad weather.
(1) As for the construction necessary for the start of copper concentrates production, the main civil engineering and building construction works have been completed, mainly leaving equipment installation.
(2) Production of refined copper by means of solvent extraction and electrowinning (SX-EW) was already started on March 14, and the operation is proceeding basically on schedule.
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.