Takeover happening in Chile
TORONTO/LONDON -- "Canada's Teck Resources (TECKb.TO 1.85%), Lundin Mining (LUN.TO 1.74%) and HudBay Minerals (HBM.TO 1.86%) are among a number of suitors that have submitted bids for BHP Billiton's (BHP.N) Cerro Colorado copper mine in Chile, people familiar with the matter said. The Anglo-Australian miner expects the asset to fetch as much as US$800 million, the people said, declining to be named as the process is private"...From what I gathered, Cerro Colorado is a SxEw operation in the north of Chile. Upon inception in 1994, the project had comprised a 10kt/d leach operation to produce 40kt/a cathodes. The capital cost to develop the project was US$230 million. Capacity was increased to 60kt/a in 1995 at a further capital cost of US$59 million. (Source BNN News)... Coro Mining with 20 kt/a mill will be about 1/3 the size of Cerro. It has bought the Ivan mine on the cheap as that Peruvian miner put it on care and maintenance probably due to the lack of ore to feed its Ivan processing facility. Capex or Capital costs for a similar facility would be in the range of hundreds of millions.