This reflects the stronger Chilean peso against the US dollar, the inflationary effects on construction materials, equipment and labour and the costs of development.

As a result, the estimates have been increased from around $2bn to $3bn.

Despite this increase the company believes that the project will still be economic, driven by the increase in copper prices.

Construction is progressing in line with the original schedule. Detailed engineering and construction of the camp and access roads to the mine site have been mostly completed.

The groundwork for each of the facilities has started and it is expected that commercial production will commence in 2013 as originally planned.

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