News

Mitsubishi Materials Corporation ("MMC") is pleased to announce that the Zafranal Copper Project ("Project") has received regulatory approval from SENACE, Peru's National Service of Environmental Certification for Sustainable Investments. The deposit is owned by Compañía Minera Zafranal S.A.C. ("CMZ"), of which MMC owns 20% and Teck Resources Limited ("Teck", Head office: Vancouver, Canada, Chief Executive Officer: Mr. Jonathan Price) owns 80%. With this regulatory approval, CMZ will update and verify the project capital and operating cost estimates and will develop detailed engineering plans. The Project could be positioned for a formal project sanction decision as early as H1 2024.

The Project is a mid-sized copper-gold development project located in southern Peru, characterized by relatively soft, high-grade ores in the secondary enrichment copper zones in the shallow part of the deposit. In addition, the concentrate produced from the Project is expected to contain little deleterious impurity elements.

One of the long-term strategies in the Medium-term Management Strategy of the Resources Business from fiscal 2024 to 2031 is "Acquisition of copper mining interests and securing copper concentrates through continuous investment in mines." By steadily advancing the Project, we will advance the initiatives to realize this goal.

Overview of the Zafranal Copper Project

(1) Property Holder

: Compañía Minera Zafranal S.A.C.
(Joint venture between MMC (20%) and Teck (80%))

(2) Location and Topography

: 90km northwest of Arequipa, Peru. Elevation: 2,900m

(3) Mining and Processing Method

: Open pit and Flotation

(4) Mine Life

: 19 years

(5) Concentrator Plant

: Up to 80,000 tonnes of ore throughput per day. The mine and concentrator are expected to produce an average of 133,000 tonnes of copper contained in concentrate during its first 5 years of production.

(6) Project Status

: A Feasibility Study was completed in June 2019, which was updated in January 2020 to include discrete value-added engineering updates.

(7) Location

: See map below

[Related press release]
July 5, 2013
Republic of Peru: Participation in Zafranal Copper Project
URL: https://www.mmc.co.jp/corporate/en/news/2013/news20130705.html