CESCO:Chile Collahuasi Mine Mulling Use Of Sea Water In Expansion

Chilean copper mine Dona Ines de Collahuasi is mulling the use of sea water for its production expansion plans, an Anglo America PLC (AAUKY, AAL.LN) executive said Tuesday.

Collahuasi currently produces around 550,000 metric tons of copper a year and is evaluating an ambitious expansion project that could nearly double its annual production.

Global diversified mining companies Xstrata PLC (XTA.LN) and Anglo American each hold a 44% stake in the mine, while a consortium led by Mitsui & Co. (MITSY, 8031.TO) holds the remaining 12%.

"We're currently at the conceptual stage. We're defining its scope," John Mackenzie, chief executive of Anglo's Copper Business Unit, told reporters on the sidelines of the 10th annual CRU Copper Conference.

He added that like most other copper mining projects, the expansion will require additional water, a commodity that is scarce in northern Chile, home to the Atacama desert.

"We're studying the use of sea water," Mackenzie said.

While several other mines in Chile use water from the sea, only Antofagasta PLC's (ANTO.LN) Esperanza mine, scheduled to be inaugurated later this week uses it for almost all of its copper processing.

Collahuasi is located 185 kilometers southeast of the port of Iquique, high in the Andes Mountains at 4,400 meters above sea level.

-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; [e-mail]