On January 28, MMG (01208.HK), a subsidiary of China Minmetals Corporation (“Minmetals”) announced that it put into operation its Las Bambas copper mine in Peru. This announcement marks the construction and commissioning of Las Bambas copper mine ——China's largest overseas acquisition in metal and mining industry to date has been completed on schedule and initial results have been achieved. The successful operation of the project on schedule also means that Minmetals, a Chinese "going out" pioneer, has gained strong international competitive edge and expertise in the construction management and operation of overseas large-scale mining projects.

Currently, Las Bambas copper mine has achieved a rated mining capacity of more than 400,000 tons per day. With two production lines of the copper dressing plant successfully put into operation, the project will embrace a boost in production. As the project achieves production targets, Minmetals will become the largest copper mine producer in China and be among the top 10 worldwide.

Las Bambas copper mine began the commissioning in the fourth quarter of 2015, and produced copper concentrate successfully. Minmetals sources indicated that the first shipment of 10,000 tons of copper concentrate from Las Bambas in Peru departed from the Port of Matarani to China on January 15, 2016.

On April 14, 2014, the consortium consisting of MMG, Guoxin International Investment Corporation Limited and CITIC Metal Co., Ltd. signed an equity purchase agreement on Las Bambas project with Glencore, and the transaction was completed on July 31, 2014. With the purchase consideration and capital expenditure incurred totaled more than US$10 billion, Las Bambas project became the largest overseas acquisition in the history of China’s metal and mining industry. The successful implementation of this acquisition greatly enhanced China's copper resources strategic support capabilities, and also had an important role in promoting the economic development in Peru and the economic and trade relations between China and Latin America. Located in the Apurímac Region of southern Peru, Las Bambas copper mine has been identified with more than 12 million tons of copper reserves, with the length of service over 20 years. It is expected that in five years after production targets achieved, Las Bambas copper mine will produce copper concentrate containing about 450,000 tons of copper each year, boasting great potential and broad prospects.

To ensure the project put into operation as planned, Minmetals strengthened shareholder-level management and control efforts. Relying on an experienced overseas team for project field work, Minmetals established an effective management and control system. With joint efforts of Chinese and foreign teams, Minmetals optimized project construction routes, adjusted the project management team, promoted community relocation and resettlement, and properly dealt with mass protests. Without exceeding the construction duration and budget, the project construction goals were successfully completed.

In the next few months, the project will focus on yield improvement, to achieve the rated processing capacity of 140,000 tons per day. With the advance of production work and yield improvement, Las Bambas copper mine is expected to produce copper concentrate containing 250,000-300,000 tons of copper in 2016. After stabilizing production, cash costs of the project will be in the first quadrant of the global copper mine cost curve.