Pre-selected companies to receive Las Bambas results

Peru's authorities will present Wednesday (Dec.3) the results of recent exploration at Las Bambas copper deposit to companies on the shortlist to take part in the state sell-off of the project, an official involved in the process told BNamericas. The information, including the results of 2,500m of drilling, will then be placed in the Las Bambas project data room which is open only to pre-selected companies, said the state miner Centromin source. So far 11 companies have been pre-selected, according to the official, adding that this might increase to 12. No date has yet been set for the auction but it is slated to go ahead in the first quarter of 2004, put back from December this year. Companies known to be on the shortlist include Southern Peru Copper Corp (NYSE: PCU), US miner Phelps Dodge (NYSE: PD), Anglo-Australian mining house BHP Billiton (NYSE: BHP), London-based Rio Tinto (LSE: RIO) and Brazilian mining giant CVRD (NYSE: RIO). State investment promotion agency ProInversion arranged for the drilling to create a level playing field for all companies taking part in the bidding, some of which explored the deposit during an unsuccessful sell-off attempt in 1997. Located in Apurimac department at an altitude of 4,400-4,650m, the Las Bambas skarn-type copper deposit has proven reserves of 40.5Mt grading 2% copper and exploration potential of more than 500Mt, according to ProInversion. Las Bambas consists of 31,978ha of concessions divided into four zones: Chalcombamba with a resource of 27.8Mt grading 2.1% copper, Ferrobamba with 9.6Mt at 2.3%, Sulfobamba with 2.9Mt grading 2.8% and Charcas, consisting of 200,000t grading 6% copper. Land ownership disputes, settled in favor of the State earlier this year, have made it hard for Peru's government to auction off the deposit.