The feasibility study for a project to add a new underground level at state copper producer Codelco’s El Teniente division will be completed in November, the Chilean company said in a release.

The feasibility study is currently under development for the project that involves total investment of close to US$1.65bn, the release said.

“The challenge is to construct a new mine below the world’s largest underground copper mine,” project manager Jorge Revuelta said.

The project, which is expected to be completed by 2017 and have a mine life of 50 years, aims at maintaining the division’s current production levels of some 430,000t/y of refined copper with capacity of 130,000t/d. However, the project also would have the option to begin works in 2024 to later expand capacity to 180,000t/d, Revuelta added.

The new level at the underground mine contains 2.4Bt of reserves at an average grade of 0.84%.

PILAR NORTE, CHUQUI UNDERGROUND

The division, in central Chile’s region VI, also expects to commission its US$121mn Pilar Norte project by mid-2010. The project aims at producing some 55,000t/y, replacing output from other areas of the mine that are about to be depleted.

Regarding Codelco’s project to convert the Chuquicamata open pit mine in northern region II into an underground operation, the project’s engineering director Sergio Olavarría said construction of the initial tunnels at the site is expected to start in 2011.

The project is currently in the feasibility stage with basic engineering taking place. The study is expected to be completed before year-end.

With a total investment of US$1.9bn, underground operations at Chuquicamata will extend output for 50 years beginning sometime in 2018-20 and have a peak production capacity of 380,000t/y of fine copper, Olavarría said. The site has 1.7Bt of reserves grading 0.7% on average.

This is the first time in the world a mine of this magnitude will change from open pit to underground extraction, Olavarría said.

Once both projects are operating, Codelco’s production will mainly come from underground operations. Right now, underground mining only represents 30% of total output, with the remainder coming from open pit mines.

Codelco is the world’s largest copper producer.

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