Anglo American PLC (LON:AAL) said on Thursday it is pushing ahead with the development of the Quellaveco copper project in Peru and reported a 9% decrease in first-half net profit.
The first production of the U$5bn Quellaveco project is expected in 2022 and full production is anticipated a year later.
Quellaveco is one of the world’s largest untapped copper projects and Anglo American said it is a low-cost, long-life asset with the potential to be expanded beyond an initial 30-year life-span.
The project is expected to produce about 300,000 tonnes of copper per year in the first 10 years with cash costs of US$1.05 per pound.
"As we now move forward to develop the world-class Quellaveco copper project in Peru, in conjunction with our partner Mitsubishi, we are excited about the opportunities we see across the business," said chief executive Mark Cutifani.
READ: Anglo American ups full-year platinum guidance but trims iron ore forecasts
Profit for the six months ended June 30 dropped to US$1.29bn from US$1.42bn a year ago while revenue rose 13% to US$13.7bn.
Copper production increased 10% to 312,900 tonnes, driven by productivity improvements at mine and plant and planned higher ore grades at the Los Bronces and Collahuasi mines in Chile.
Metallurgical coal production increased by 17% to 10.8mln tonnes, boosted by a strong performance at the Moranbah mine in Australia and the full ramp-up of Grosvenor, also in Australia.
Platinum production grew 4% to 1.2mln ounces while Kumba's iron ore output increased 3% to 22.4mln tonnes.
Diamond miner De Beers, in which Anglo American owns an 85% stake, delivered an 8% increase in rough-diamond production to 17.5mln carats. The forecast for diamond production in 2018 remains unchanged at 34-34mln carats, the company said.
Anglo American raised its interim dividend to US$0.49 a share from US$0.48 a year ago.
Shares fell 2% to 1,665p in morning trading.