Glencore, Goldcorp and Yamana join forces to integrate Argentina mines
Glencore, Goldcorp and Yamana Gold have announced an integration agreement to develop and operate the Agua Rica copper and gold project in Argentina using the existing infrastructure and facilities of the Alumbrera mine in the Catamarca Province.
“The integration of the Agua Rica project and the Alumbrera mine has significant merit given the proximity of the assets, and the potential to realise significant synergies by taking full advantage of existing infrastructure associated with the Alumbrera mine for the development and operation of Agua Rica,” the three companies said in a joint statement.
Preliminary studies show the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes of copper-equivalent metal, including the contributions of gold, molybdenum, and silver, for the first 10 years of operation. This is based on the Agua Rica mineral reserveestimated to contain proven and probable mineral reserves of approximately 4.5 million tonnes of copper and 6.5 million ounces of gold contained in approximately 910 million tonnes of ore.
Glencore, Goldcorp and Yamana have formed a Technical Committee to evaluate the Integrated Project. Apre-feasibility study for the Integrated Project will be completed in 2019 and that a full feasibility study with updated mineral reserve, production and project cost estimates will be completed by 2020.
Yamana will contribute its current 100% interest in the Agua Rica project and its 12.5% interest in Alumbrera, while Glencore and Goldcorp will contribute their respective 50% and 37.5% interests in Alumbrera. The Agreement provides the Parties with a path to a full integration of the Agua Rica project and the Alumbrera mine technically and legally. Upon completion of the integration structure Yamana will own 56.25%, Glencore 25% and Goldcorp 18.75%.