XSTRATA Copper's Ernest Henry Mining (EHM) operation near Cloncurry in north-west Queensland has commenced construction works to sink a new hoisting shaft that will enable production at its new underground mine to double following its commissioning in 2013.
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Today's announcement marks another significant milestone in EHM's $589 million project to extend the life of the mine to at least 2024 through underground mining.
EHM General Manager, Myles Johnston, said the seven-metre wide shaft would reach a depth of around 1,000 metres over the next year with fit-out and commissioning works to follow.
"We transitioned to underground mining late last year, following the completion of our open pit operations, and we are currently trucking ore from the mine via a decline at a rate of approximately two million tonnes per annum," Mr Johnston said.
"Our production will ramp up to three million tonnes per annum by the end of 2012, producing around 25,000 tonnes of copper and 35,000 ounces of gold in concentrate.
"Following the commissioning of the shaft at the end of 2013, production will increase to six million tonnes per annum producing 50,000 tonnes of copper and 70,000 ounces of gold in concentrate.
"Over the last year we have installed and commissioned key pieces of infrastructure, including six winders and a 28 metre tall sky-shaft, to enable shaft sinking to commence and to progress at a rate of up to three metres per day."
Xstrata Copper North Queensland Chief Operating Officer, Steve de Kruijff, said the EHM underground shaft project is playing an important role in sustaining Xstrata's North Queensland operations, which provide significant economic benefits to the region and the state.
"Our $589 million investment in this project will extend the life of our Ernest Henry operations by at least 12 years, creating 330 jobs during the construction phase and 400 full-time jobs from 2013, and provide ongoing economic security for the Cloncurry community," Mr de Kruijff said.
"We also expect to create an additional 100 jobs with the development of our nearby Mount Margaret Mining Project which we acquired for $175 million in June last year."
In 2011, Xstrata's North Queensland copper operations contributed almost $1.6 billion to the Queensland economy and employed more than 4,400 people.
