(MENAFN) Xstrata Plc has raised its initial capital spending estimate for the undeveloped Frieda River copper mine to USD5.6 billion, reported Reuters.
According to Australia-listed Highlands Pacific, a minority partner in the project, the global miner lifted the initial estimate by USD300 million.
Highlands Pacific added that it had obtained a feasibility study from Xstrata that showed the new estimate, and also cited a projected switch from hydro-electric power to gas, in case the project continues.
When Xstrata released an earlier study 2 years ago, it had predicted spending on the Frieda River project at USD5.3 billion.
Papua New Guinea, where the mine is located, is in the midst of exploiting large quantities of natural gas, which could reduce operating costs for mining projects.
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