Anglo-Glencore Collahuasi copper mine postpones expansion plan

miércoles 14 de octubre de 2015 13:42 GYT
 

By Fabian Cambero

SANTIAGO Oct 14 (Reuters) - Chile's second-biggest copper mine Collahuasi, owned by Anglo American Plc and Glencore Plc has postponed expansion plans, on top of its previously announced cuts, as it faces a six-year low in the price of the base metal.

On Sept. 29 Collahuasi had said it was planning to cut output by 30,000 tonnes, alongside dozens of jobs, because of difficult market conditions.

But a letter addressed to workers that same day, seen by Reuters on Wednesday, added that its growth project would also be delayed.

"The growth project has been postponed and operations at our company will be reduced," the letter said.

Collahuasi has been mulling expansion plans to double the mine's annual production to around one million tonnes for some time, a plan originally slated to cost some $6.5 billion.

Metals companies globally have been cutting back on production and freezing expansion plans as a cooling Chinese economy has darkened the outlook for a quick recovery in the copper price.

Collahuasi could not immediately be reached for comment on Wednesday.

(Reporting by Fabian Cambero; Writing by Anthony Esposito; editing by Grant McCool)