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BHP BILLITON PLC - BHP BILLITON APPROVES ESCONDIDA SULPHIDE LEACH COPPER PROJECT
BHP Billiton Plc
JSE Share Code: BIL
ISIN Code: GB0000566504
NEWS RELEASE
BHP BILLITON APPROVES ESCONDIDA SULPHIDE LEACH COPPER PROJECT
BHP Billiton today announced the approval of the US$870 million (US$500 million
BHP Billiton share) Escondida Sulphide Leach copper project in Chile. The
project will produce 180,000 tonnes (103,500 tonnes BHP Billiton share) of
copper cathode per annum for in excess of 25 years and is scheduled to begin
production during the second half of 2006.
The project will utilize a bacterially assisted leaching process on low-grade
run-of-mine sulphide ore from the existing Escondida pit and the currently in-
development Escondida Norte pit. The resulting solutions from the leaching will
then be treated in solvent extraction and electro-winning plants to produce
copper cathode.
President Base Metals Diego Hernandez said: "Escondida has been stockpiling low-
grade sulphide material since its inception and has been conducting studies on
leaching this material since the mid 1990s. New technological developments
allow us today to economically process this low-grade material, previously mined
as waste. We are excited about this project and the prospects for further
application of this technology at other BHP Billiton copper projects."
The total, combined sulphide leach ore reserve to be extracted from both the
Escondida and Escondida Norte pits, is estimated at 1.134 billion tonnes at an
average copper grade of 0.52%, contained within a copper cut-off grade range of
0.3 to 0.7%. These ore reserves are sub-divided into 249 million tonnes at
0.52% copper of proved reserve and 884 million tonnes at 0.52% copper of
probable reserve.
Water supply will come from a 500 litre per second desalination plant to be
constructed at the Escondida port-site of Coloso near Antofagasta, Chile. Water
will be pumped to the Escondida mine facilities, 170 kilometres southeast of
Antofagasta.
6 April 2004
Forward-Looking Statements
This release contains forward-looking statements about BHP Billiton"s
development and capital expenditure plans and future production. Words such as
"will," "is expected to," "is estimated to" and similar expressions are intended
to identify such forward-looking statements. The statements are based on
management"s current expectations, estimates and projections; are not guarantees
of future performance; and are subject to certain risks, uncertainties and other
factors, some of which are beyond BHP Billiton"s control and are difficult to
predict. Certain factors that could cause actual results to differ materially
are discussed in the sections entitled "Risk Factors" and "Operating and
Financial Review and Prospects - General factors affecting our operating
results" included in our annual report on Form 20-F for the fiscal year ended
June 30, 2003, which we filed with the US Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Unless legally required, BHP Billiton
undertakes no obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
The information in this report that relates to Ore Reserves is based on
information compiled by Dr. Jonathan M. Gilligan Ph.D., B.Sc. (Hons), FGS,
MAusIMM, who is a Member of the Australian Institute of Mining and Metallurgy
and is a full time employee of Minera Escondida Ltda. Dr Gilligan has
sufficient experience, which is relevant to the style and type of deposit and to
the activity that he is undertaking to qualify as a Competent Person as defined
in the 1999 edition of the "Australasian Code for Reporting of Minerals
Resources and Ore Reserve". The Competent Person consents to the inclusion in
this report of the matters based on their information in the form and context in
which they appear.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Tracey Whitehead, Mark Lidiard,
Investor Relations Investor & Media Relations
Tel: +61 3 9609 4202 Tel: +44 20 7802 4156
Mobile: +61 419 404 978 email:
email: Mark.Lidiard@bhpbilliton.com
Tracey.Whitehead@bhpbilliton.com
Tania Price, Ariane Gentil,
Media Relations Media Relations
Tel: +61 3 9609 3815 Tel: +44 20 7802 4177
Mobile: +61 419 152 780 email:
email: Tania.Price@bhpbilliton.com Ariane.Gentil@bhpbilliton.com
United States South Africa
Francis McAllister, Michael Campbell,
Investor Relations Investor & Media Relations
Tel: +1 713 961 8625 Tel: +27 11 376 3360
Mobile: +1 713 480 3699 Mobile: +27 82 458 2587
email: email:
Francis.R.McAllister@bhpbilliton.com Michael.J.Campbell@bhpbilliton.com
Date: 06/04/2004 07:49:05 AM Produced by the JSE SENS Department |
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