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Friday, 4 February 2011

Bigger than Lumwana? 3rd Edition

Canada's First Quantum Minerals plans to invest $1 billion in a new copper mine dubbed "Trident" - development to start in 2011 and finish by 2014. The investment will include a copper smelter to handle concentrate from a mine expected to produce 300,000 tonnes of copper annually at peak production. According to FQM President, Clive Newall, "the initial capital investment for the project will be approximately $600 million, rising to $1 billion with construction of a new 1.0 Mtpa copper additional $400 million would be spent on future upgrades". The investment will allegedlly come with a new town and a multi-facility economic zone which will directly em ploy 2,000 people. Coverage in various sources including Mineweb and Reuters.  No word on their fiscal assumptions.

Its election year of course and a lot riding at stake. Investments become real when they actually materialise. This is not the first time we have heard of a proposed investment bigger than Lumwana. We have yet to see the great Zhongui Mining Group project which promised to deliver 34,000 jobs. Caution should therefore be advised. 

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