The Ok Tedi copper mine extension in Papua New Guinea’s Western Province could bring $1.2bn in revenues for the nation over the seven years running from 2013 if the country approves the plan.
Ok Tedi Mining said the revenues will come from royalties, taxes and dividends.
It told the National newspaper the extension could result in annual production of 100,000t of copper and 350,000oz of gold.
The plan involves construction of an open-cut mine and two underground mines apart from processing.
Ok Tedi says that 1,500 people and contractors will continue to work on the project.
The development work should commence in 2010 in order to access the ore by the year 2014, the company said.