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Anglo American announces prefeasibility study for further expansion at Collahuasi

23 June, 2011

Anglo American plc draws attention to the announcement made by Collahuasi, its 44% owned copper mine in Chile, relating to the approval of the prefeasibility study for the next expansion phase of this world class copper operation. The translated text of that announcement is copied below:

“The Board of Directors of Compañía Minera Doña Inés de Collahuasi SCM has given its approval for the company’s technical teams to commence a prefeasibility study into a major expansion of Collahuasi, referred to as Phase III. This project would mean a significant increase in the concentrator plant’s processing capacity and the construction of associated infrastructure. 

The project envisages the construction of one or two new grinding lines, allowing Collahuasi to process between 270,000 and 380,000 tonnes of ore a day. This increase in production from the current annual average of approximately 500,000 tonnes of copper to 800,000 tonnes with a single line expansion, and to more than one million tonnes with both lines, would begin from the project’s anticipated commissioning in 2017.

A decision will be taken in the second half of this year on whether to complete studies on the options of either one or two new grinding lines. The prefeasibility study is scheduled for completion in the first half of 2012.

Collahuasi has recently announced approval to increase the processing capacity of its existing concentrator plant to 160,000 tonnes of ore per day by mid-2013. 

"This expansion project is aligned with Collahuasi’s growth plan that seeks to increase annual output to more than one million tonnes of copper supported by Collahuasi’s significant Mineral Resource of 7.1 billion tonnes at an average grade of 0.82%,” said Giancarlo Bruno, Collahuasi Chief Executive Officer.”

For further information:

Compañía Minera Doña Inés de Collahuasi SCM (“Collahuasi”) is Chile’s third largest copper mine and produced 504,043 tonnes of fine copper in 2010. Its shareholders are Anglo American plc (44%), Xstrata Plc (44%) and a Japanese consortium headed by Mitsui (12%).

Anglo American plc is one of the world’s largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American’s portfolio of mining businesses spans precious metals and minerals – in which it is a global leader in both platinum and diamonds; base metals – copper and nickel; and bulk commodities – iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia. www.angloamerican.com

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James Wyatt-Tilby
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