APM to receive Karachipampa plant - November 12, 2008
BNamericas reported that Bolivia's government will hand over control of the Karachipampa metallurgical plant in Potosí department to Canada's Atlas Precious Metals on February 20th 2008. Karachipampa will start operating within 10 to 12 months with production scheduled to begin in 2009.
A mining ministry spokesperson told BNamericas that "It has been confirmed that the guarantee will be delivered to the government this Wednesday and physical control of the plant will be issued at the same time adding that the transfer ceremony has already been organized.”
The spokesman said that "We expect President Evo Morales - to be present.”
Comibol and Atlas Precious Metals - signed a 35:65 JV agreement in June 2005 to reactivate the 51,000 tonne per year Karachipampa plant for treatment of silver based concentrates with traces of zinc.
Atlas Precious Metals - has prepared the USD 850,000 guarantee to Bolivian state miner Comibol in exchange for the right to reactivate the lead-silver smelter under its own management.
The project calls for a total investment of USD 174 million.
The Karachipampa plant - was completed in 1983 at a cost of USD 500 million but has never been put into production because of what have been called conceptual errors in its design.