Xstrata Copper to spend $121 M to extend Kidd

Mining giant Xstrata’s (XSRAF-O, XTA-L) subsidiary Xstrata Copper will invest $121 million to extend the life of its Kidd polymetallic mine near Timmins, Ont.

The work would see Kidd, already the deepest base metal mine in the world, extend from 9,100 ft underground to 9,500 ft, giving the mine an extra nine years.

“The investment approval reflects Xstrata Copper’s commitment to the sustainability of Kidd Mine and the Timmins community and its business strategy to continually implement improvements to enhance the value of its operations,” said Claude Ferron, chief operating officer for Xstrata Copper Canada in a press release.

Ferron credits mine safety and community support with keeping the project afloat.

“Our ability to mine safely and efficiently at the 8,800 level, the commitment of our employees and support of the community were fundamental factors in obtaining the necessary approvals,” added Ferron.

Construction on the project is expected to be completed by mid-2010 and is estimated to create 75 additional jobs. The workforce is currently 2,200 employees.

The mine, which began producing in 1966, has seen a number of revitalization efforts over the past few years. Among them include a $664-million investment in 2006, to complete the Mine D expansion project.

The mine was also expanded in 2007, to 9,100 ft.

Kidd currently produces about 45,000 tonnes of copper and 130,000 tonnes of zinc contained in concentrates, annually.

But even with the new investment and expansion, Ferron said the company continues to “study the potential to add ore reserves at the mine and to further extend its operational life.”