Baja Mining reviewing capital, operating costs for Mexico mine
miningweekly.com
By: Liezel Hill
Published on 3rd February 2009
TORONTO (miningweekly.com) – TSX-listed Baja Mining is working with its Korean partners to update the capital and operating cost projections for its Boleo project, in Mexico, the firm said on Tuesday.
Baja announced in October that it would delay development of the copper/cobalt/zinc/manganese mine until market conditions improved, and is now collaborating with its partners on a new project schedule.
The new plan will incorporate revised cost estimates and will set out the expected timeframe to restart construction.
Baja “believes that one positive outcome of the global financial crisis and the related easing of the construction market, is the potential for a reduction in capital and operating costs in the near term,” the firm said in a statement.
The company, which has about $44,7-million in cash, is also working with financial advisor Endeavour Financial on a financing package for the project, and detailed engineering work, as well as progress on infrastructure like the construction camp and desalination plant, is continuing.
Vancouver-based Baja agreed in April last year to sell a 30% stake in the Boleo project to a consortium led by Korean State-owned Korea Resources Corporation, to help fund the mine's development.
At the time, the capital cost of the project was estimated at $991-million.
Commissioning on the mine is now targeted for 2011.
Editor: Liezel Hill |
