Outotec has signed a contract with Quadra FNX Mining for the design and delivery of a process solution to the new copper-molybdenum concentrator located in Sierra Gorda, close to Antofagasta in northern Chile. Deliveries of Outotec TankCell^® e300 flotation cells, concentrate and tailings thickeners as well as filters are scheduled to be completed during 2012. In addition, Outotec is also providing installation, commissioning and start-up services for the delivered equipment.
The resource estimate for Sierra Gorda is 2,000 Mt of Measured & Indicated Resources in sulphides. The mineral resource is inclusive of the estimated Proven & Probably Reserves of 1,275 Mt of sulphide ores. The feasibility study identifies a project that has been designed as a conventional open pit operation with an initial planned throughput of 110,000 t/d, expanding to a throughput of 190,000 t/d in Year 4 of operations with a current mine life of 20 years.

The molybdenum head grades are highest during the first three years. The initial throughput rate was selected to constrain molybdenum production to levels that were judged to have limited impact on the global molybdenum market. Molybdenum production will be 54 Mlb/y during the first three years of operation. An expansion to a throughput of 190,000 t/d is planned for completion during the third year of operations, after which molybdenum production will average 20 Mlb/y for the balance of the mine life.

The bulk of the copper concentrates will be sent to the port of Mejillones, from which it will be shipped to global smelters. Molybdenum concentrate will be bagged on site for sale locally and overseas. Oxide mineralisation will be stockpiled separately for treatment in a possible future heap leach operation.

“Outotec is committed to providing process solutions that enable our customers to recover the valuable metals in the most sustainable manner possible. We are happy that our latest flotation and thickening developments were chosen for the new Sierra Gorda concentrator. For example Outotec TankCell e300 is the most energy efficient flotation cell in the market with 20% lower energy consumption per processed ore tonne compared to other available methods”, said Outotec’s CEO Pertti Korhonen.

The contract value is about €26 million. The majority of the contract is booked in Outotec’s Q3 order intake with a small part being booked in the fourth quarter.