Base metals miner Hot Chili has amended its lease mining and processing agreement with Chilean government agency Empresa Nacional de Mineria (Enami) over mining and processing operations at its Productora copper/gold project.
Under an agreement struck earlier this year, Enami was granted leave to process around 120 000 t/y of ore through the Vallenar plant over a two-year period, with the option to extend the agreement by a further year.
The Productora joint venture company, in which Hot Chili owns an 80% stake, will be paid $2/t for the ore processed, along with a 10% royalty for the sale value of the extracted minerals.
Hot Chili on Friday said that the company has now granted Enami a further concenssion for an additional 60 000 t of oxide ore supply a year to the Vellenar processing plant, with the concession for lease mining and processing now allowing for a total of 180 000 t/y of oxide and sulphide ore from Productora.
The increased production rate accounts for all remaining processing capacity at Enami’s oxide and sulphide processing facility.
Hot Chili noted that ramp-up of lease mining was under way, following recent mine plan and permitting approvals at Productora, and the lease mining team is currently extending the existing decline to access new ore development below the underground mine.
Once access to the new development is in place, the lease mining team expects to increase its production rate, which has been limited to small-scale remnant ore extraction to date.
Source: Mining Weekly |
