Despite a long road ahead until operation, West Perth-based Tethyan Copper Company remains optimistic, with the copper explorer in the midst of an exploration and pre-feasibility program for its flagship prospect in Pakistan.
Despite a long road ahead until operation, West Perth-based Tethyan Copper Company remains optimistic, with the copper explorer in the midst of an exploration and pre-feasibility program for its flagship prospect in Pakistan.
Tethyan chief executive officer Eduardo Flores told WA Business News the company would look to have its Reko Diq prospect, in the Chagai Hills region of south-west Pakistan, in operation by 2013 following two to three years of construction.
“When you look at the copper market right now there is a lot of pressure to fast track [the project], so we are definitely looking at ways to do this,” Mr Flores said.
The company, which was bought earlier this year by UK-listed Chilean miner Antofagasta plc, is currently in the pre-feasibility stage of the Reko Diq prospect, of which it holds a 75 per cent interest in the exploration licence.
“We are spending $30 million to December 2007 in order to complete infilling and pre-feasibility analysis,” Mr Flores said.
“Following this, we can concentrate on the feasibility analysis which will take another year.”
He said Tethyan had decided to remain based in Western Australia because, unlike Pakistan, the state boasted a wealth of service companies to the mining industry that could provide assistance to the project’s development.
“In terms of contractor support…there is almost no development there [in Pakistan],” Mr Flores said.
“[Alternatively] we have everything set up in Perth.
“We are very concentrated at the moment on the infill…but we will also have to start looking at analysing the plant and mine design and infrastructure, so this is going to get our attention over the next couple of months.”
The company has reported total indicated and inferred mineral resource estimates at properties within the Reko Diq prospect of 2.4 billion tonnes, with a copper grade of 0.51 per cent and a gold grade of 0.27 g/t.
Tethyan is currently in negotiations with the government of Pakistan to develop a “mineral agreement”, which is expected to be completed by the end of 2006.
In a move to establish its own identity, Tethyan has moved from Mincor Resources’ offices, of which it was a former subsidiary, on Havelock Street to its new offices on Colin Street in West Perth.
The company announced a restructure of its board in May, with Mr Flores, an Antofagasta executive, appointed Tethyan’s new chief executive officer, Ramon Jara as chairman and Alejandro Rivera and Russell Stuart as directors.
In June 2006, Antofagasta completed its acquisition of Tethyan at a total acquisition cost of $299 million. It entered into an agreement with Barrick Gold Corporation to support the takeover offer and to establish a 50:50 joint venture whereby Barrick would reimburse Antofagasta for 50 per cent of the acquisition cost.
The terms of the proposed joint venture are expected to be finalised in the second half of 2006.
