Xstrata has approved the development of the $4.2bn Las Bambas copper project in southern Peru's Apurimac region.
Las Bambas will have an initial production of 400,000t per annum of copper in concentrate, including significant gold, silver and molybdenum by-products.
The recently announced $1.47bn Antapaccay expansion and Las Bambas greenfield project will establish Southern Peru as a first tier copper-producing division for the company, Xstrata said.
Meanwhile, Xstrata has approved a $1.1bn investment to develop the Ulan West underground thermal coal mine in New South Wales, Australia.
The Ulan West underground longwall mine will produce 6.7 million tons a year of export thermal coal, with a life of about 18 years.