Dec. 15 (Bloomberg) -- Xstrata Plc, the fourth-largest copper producer, said it extended the life of the Kidd mine in Ontario, Canada, for at least two years after investing C$120 million ($116 million).
The enlargement of the mining zone to 9,600 feet (2,930 meters) from 9,100, a plan approved in 2008, will prolong operations to the first half of 2018, Xstrata said in a statement today. The program has identified an additional 700,000 metric tons of ore reserves, with the objective of extending operations further to 2020, the Zug, Switzerland-based company said.
Xstrata plans $19.5 billion of spending from next year to raise output 50 percent by the end of 2014 because it foresees demand for coal and copper exceeding supply after delays at new projects planned by competitors. The company last year shut its smelter at the Kidd site because of overcapacity and declining processing fees.
Xstrata in May said it would stop smelting and refining copper in northern Australia by the end of 2016 as rising costs and excess capacity prompt the company to focus on mining. The company will expand mining and concentrate production, while phasing out copper smelting at Mount Isa and refining in Townsville, it said.
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