Canadian miner First Quantum Minerals has outlined plans for a potential $5-billion development at its 100%-owned Taca Taca project, positioning the asset as its next major copper growth project as Argentina seeks to attract large-scale foreign investment.

The company last week filed a new National Instrument 43-101-compliant technical report for Taca Taca, updating capital costs, mine design and commodity price assumptions.

Located in the Puna region of Salta province, Taca Taca is a large porphyry copper/gold/molybdenum deposit at an elevation of 3 500 m.

"The report clearly demonstrates the significant strategic opportunity represented by Taca Taca as the company’s next development project,” CEO Tristan Pascall said.

He described Taca Taca as “one of the world’s premier undeveloped copper assets”, adding that the updated study reaffirmed its potential as a “major, long-life copper mine with meaningful gold production, that is competitively positioned on the global cost curve”.

40 MT/Y START, 60 MT/Y EXPANSION
The updated study supports the development of Taca Taca as a conventional openpit mine with an initial processing capacity of 40-million tonnes a year, expanding to 60-million tonnes a year from the fifth year of operation.

The design mirrors First Quantum’s large-scale semi-autogenous grinding mill processing model used at operations such as Sentinel mine and Kansanshi mine, in Zambia, with scope for staged expansion.

Initial capital to build the 40-million-tonne-a-year operation is estimated at $4.23-billion, with a further $1.02-billion required for the 60-million-tonne-a-year expansion, bringing total development capital to about $5.25-billion.

At base case assumptions of $4.50/lb copper, $3 000/oz gold and $18/lb molybdenum, the project delivers an after-tax net present value (NPV), using an 8% discount, of $5.92-billion and an after-tax internal rate of return of 19.3%, with a nine-year payback.

The project shows strong leverage to copper prices, with every 10% change in the base copper price translating into a $1.47-billion, or 25%, swing in NPV.

Taca Taca hosts mineral reserves of 1.99-billion tonnes grading 0.42% copper and 0.09 g/t gold, supporting an initial 35-year mine life. The updated reserve represents a 13% increase in combined proven and probable reserves compared with the March 2021 technical report, alongside a 9% increase in contained copper and gold.

Average copper production is forecast at 291 000 t/y over the first ten years, peaking at 323 000 t/y, with life-of-mine (LoM) average output of 209 000 t/y.

Gold production is expected to average 133 000 oz/y in the first decade, peaking at 171 000 oz/y, with LoM average production of about 96 000 oz/y. Molybdenum output is estimated at about 3 000 t/y over the LoM.

Average C1 cash costs are projected at $0.97/lb in the first ten years and $1.26/lb over the LoM, with all-in sustaining costs estimated at $1.60/lb.

Capital intensity for the initial construction phase equates to about $13 545/t of yearly copper equivalent production, falling to about $10 947/t for the expansion phase.

Mineralisation remains open at depth and along parts of the southern and eastern margins of the deposit.

RIGI APPLICATION, ESIA ADVANCE
The filing of the updated technical report marks a key step toward submission of an application under Argentina’s Incentive Regime for Large Investments (RIGI), part of economic reforms aimed at attracting long-term foreign direct investment.

First Quantum is advancing the project’s environmental and social impact assessment (ESIA), with completion targeted for the first half of 2026.

Pascall said the company would continue to derisk the project as it progressed the ESIA, prepared its RIGI application and evaluated optimal financing options.

The project is expected to prioritise renewable energy where feasible and incorporate technology initiatives such as electric haulage, with the aim of delivering a lower carbon intensity profile than the company’s existing operations.