Minerals and Metals Group Ltd. (MMG, 01208.HK) is planning to suspend dividend payouts this year and ramp up production at its Las Bambas project in South America.
The project produced 9,121 tons of copper during a trial run last year, the Hong Kong Economic Journal reports, citing chief executive Andrew Michelmore.
When completed, the mine is expected to produce up to 300,000 tons of copper a year.
And with potential annual capacity of 400,000 tons, the mine would become the world’s fourth largest copper project
More than 90 percent of construction has been finished.
MMG expects US$400 million to US$500 million in annual capital spending in the next two years.
Chief operating officer Marcelo Bastos said he is upbeat about copper prices given recovery in the US property market and rising demand from infrastructure projects in India and China.
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