Modernization and Expansion of Capacity at Riotinto Copper Project

On December 2017 Atalaya Mining announced its decision to proceed with the 15 Mtpa expansion plan at Proyecto Riotinto designed to upgrade processing facilities with the ultimate goal of increasing copper production to approximately 50,000 – 55,000 tonnes per year. The project is progressing according to plan and is scheduled for mechanical completion at the end of Q2 2019.

The 15 Mtpa expansion comprises modernisation of the process plant with the installation of a new primary crushing system, a new SAG mill, additional flotation cells and concentrate handling installations as well as other site infrastructure.

The purpose of the 15 Mtpa expansion plan is to increase copper production, improve operational efficiencies, reduce maintenance requirements and lower operating cash costs.

Project Highlights

> The expansion plan is designed to deliver processing capacity of up to 15 Mtpa (estimated 50,000 – 55,000 t Cu contained in concentrate per year)

> Capital cost  estimated at €80.4 million consistent with the low capital intensity that the Company has delivered previously

> Expansion project represents capital intensity of approximately US$6,100 per tonne for the expected incremental 15,000 tonnes of Cu production

> Estimated reduction in cash costs and all-in sustaining costs by approximately 7% compared to the existing 9.5 Mtpa operation

> Management expects tan incremental NPV of approximately US$113 million (assuming an 8% discount rate) and IRR of approximately 43%, assuming a US$3.00/lb copper price, US$18.00/oz silver price, and USD:EUR of 1.15.

15M Project Progress Photo Gallery