Wednesday, April 7, 2010

Teck (TSE:TCK.b) Carmen de Andacollo Mine

Teck Resources Carmen de Andacollo Mine

Teck Resources (TSE:TCK.b) is ready to crank out production at its Carmen de Andacollo mine in Chile, and expectations are it'll be ready to begin shipment of copper in about two weeks.

A major change Teck Resources is making at the mine is to change from copper cathode production to the production of copper in concentrate. That will increase copper production at the mine by four times what it was with cathode production.

Over the first decade of the mine it is estimated it will produce 55,000 ounces of gold annually and 80,000 tons of copper.

On the gold side of the equation, Andacollo Royal Gold will receive payment on 75 percent of the gold until production reaches 910,000 ounces, once that is reached, it adjusts downward to 50 percent of gold sales. That comes from an interest in gold production Teck Resources sold to the company.

Teck is also looking to change to concentrate production from cathode production at its Quebrada Blanca mine, which is also located in Chile, although in the northern part of the country.

The cost of converting at the Andacollo mine is around C$485 million. First shipment of copper is scheduled for April 20.

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