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Baja Mining Wednesday said it is considering deferring non-copper production at its mine in Mexico's Baja California state, after revealing Monday that it was facing a $246 million, or 21.5%, increase in mine development costs above initial projections.
The Vancouver, British Columbia-based company also said it has appointed a new manager, who would have budget authority, to oversee the development of the Boleo mine.
Original estimates to develop the Boleo copper-cobalt-zinc mine were based on a 2010 cost trend analysis, the company said.
The cost increase was the result of changes to the scope of the project, design improvements and rising costs for consumables such as steel and fuel, Baja Mining said. That trend coincides with cost increases at other global mining projects.
In its Wednesday statement, Baja Mining said it was implementing more stringent cost controls. "We are responding quickly and effectively to control costs, finance projected...
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