Corp. of China Ltd. (Chinalco) will spend about $1.32 billion
to expand the Toromocho copper project in Peru, the company
The expansion, which
aims to optimize and increase the projects capacity, was
approved by the companys board June 17.
The approval is still
subject to any potential amendments, finalization details
and/or shareholder approval.
Construction of the
proposed expansion is expected to be largely complete by the
second quarter of 2016, with the increased production slated to
begin by the third quarter of that year.
feasibility study shows that the Toromocho projects
capacity could be increased by as much as 45 percent.
The expansion is
expected to be financed via the groups internal working
capital, as well as by reallocating the proceeds from its
initial public offering (IPO) and debt financing. This
includes, but is not limited to, bank loans.
A total of 30 percent
of the proceeds from the companys IPO were originally
intended for the purchase of nonferrous and nonaluminum mining
projects, which will now contribute to the cost of the
As of March 28,
Chinalco had already used more than 49 percent of the funds,
and as of June 17 it hadnt identified any suitable
The company will carry
on with its acquisition strategy, and any future acquisitions
will be financed using other internal resources and external
A version of this
article was first published by AMM sister publication Metal