The Canadian Capstone Mining group announced last Wednesday the cancellation of a project in Chile and its year expenses review because of the fall of the cooper prices.
Although the Capstone group maintains its production´s objectives for the current year, the group will reduce its investments in US$20 million for the whole year, a 13 percent, while its operation costs will be reduce for the second semester in others 20 million dollars.
Capstone had announced the cancellation of its “Santo Domingo” project in Chile, which was presented in order to its purchase in 2011 as a big development project for the cooper, iron and gold mines.
“However we are still thinking that Santo Domingo is an excellent project. Many factors, like the uncertainty of the cooper´s costs direction and of our capacity to finance the project, turns imperative the capital conservation”, Said Darren Pylot, Capstone president.
“In the current context, we think that the most prudent strategy is to cancel the project and to make a feasibility study, maintaining though, the possibility of putting the project into practice when the conditions improves”, he added.
After many years of bonanza resulting from the emergent countries demands which increase the raw material prices, the miners group have to review its plans due to the falls of the cooper prices since 2011.
Glencore, the Giant of the raw materials business had announced the past Monday a group of drastic measures in order to reduce its debt.