Pan Pacific Copper said that it will start developing a Chilean copper-molybdenum mine with Mitsui in March 2010.
Pan Pacific, a joint venture between Nippon Mining & Metals, Mitsui Mining and Smelting Co says it plans to begin building production facilities at the Caserones mine in northern Chile next month.
Production of copper concentrate with 30% copper content is expected to begin in 2013.
The addition of the Caserones mine will enable Pan Pacific to satisfy 50% of its copper concentrate needs with output from mines to which it has concession rights, up from the current 20%.
The initial investment for mine will be approximately $2bn, or 180 billion yen and Mitsui & Co. will purchase a 25% interest in the mine for $135m.
In addition, the Japan Oil, Gas and Metals National Corp has loaned the Caserones mine project for 4.8 billion yen.
Around 30 to 40 billion yen in pretax profit a year is expected to be generated from the mining operation.