Los Andes Copper Ltd V.LA

Question for copper experts

[templetooth2]

From the pre-feasibility study, I see that LA envisions a mill of 136,000 tonnes per day. I assume the company would run at 100% capacity or close to it. This is going to cost $2.4 Billion US.

Teck is just finishing the Quebrada Blanca construction project which is a little larger, 143.000 tonnes per day. I note that QB is at 4000 meters elevation versus Vizca. at 2000. Both operations are to use desalinated water. 

In late October, Teck released an updated capex estimate in the range of $7.4 - $7.75 Billion US.
How is it that Los Andes can build a similar-sized operation at one-third the cost???

[roatan2]

Regards QB2, based on my due diligence, it seems that the biggest individual source of CAPEX difference is the desalinated water procurement and tailings facilities. Desalinated water is over $1bn and tailings facilities is over $500mm. Other relevant differences were the power transmissions lines, where QB2 has double the distance and at a much higher cost per km.   QB2 also suffered