Xstrata Zinc starts Bracemac-McLeod project

On July 9, Swiss mining giant Xstrata plc’s subsidiary Xstrata Zinc Canada announced the commencement of construction of the new Bracemac-McLeod mine in Matagami, Canada, a joint venture between Xstrata Zinc Canada (65 percent) and Canadian zinc miner Donner Metals (35 percent). The mine will produce 80,000 mt of zinc and 10,000 mt of copper annually at full capacity. The development production is expected to start in early 2012, ramping up to reach full production in the first quarter of 2013. The total capital cost for the mine is approximately CA$158 million (US$151 million), of which Xstrata’s share will be approximately C$104 million (US$98 million). The mine will provide 250 jobs for its life span of at least four years and will be located approximately four kilometers from Xstrata Zinc’s Matagami concentrator, which is currently supplied with ore from Xstrata Zinc’s nearby Perseverance mine. Jean Desrosiers, vice president, mining operations, Xstrata Zinc Canada, commented, “The project is a low capital cost, high return project that will provide a continued feed of ore to Xstrata’s Matagami concentrator once the Perseverance mine comes to the end of its life. The new mine will use existing processing infrastructure and will provide ongoing employment opportunities for the existing workforce at Perseverance.”