The global recession seems to be dissipating as more investments get planned for the mining industry. Mining giant Xstrata is all set to invest $ US5.3 billion to build a copper mine in Peru and to expand a coal mine in New South Wales, Australia.
The Las Bambas copper project in Southern Peru will cost about $ US4.2 billion to develop while the Ulan West coal mine in New South Wales needs $ US1.1 billion for expansion. The construction work at the Las Bambas project will begin after regulatory approvals are in hand in the 3rd quarter of 2011.
The Las Bambas mine is likely to produce 400,000 tonnes of copper in concentrate annually. The first output from the mine is expected in the year 2014.
The Ulan West mine is likely to be expanded a bit later this year. The new mine is likely to be ready with its first production in 2014 as well. It will produce 6.7 million tonnes of thermal coal for a life expectancy of 18 years.
The company said that Xstrata has approved $ US8 billion for new mine investments this year. The new investments will help Xstrata meet the target of 50 per cent increase in production by the year 2014. The related costs are slated at an estimated $ US14 billion.