Phoenix-based Freeport-McMoRan Copper & Gold Inc. said it will proceed with plans to restart operations at the Climax molybdenum mine near Leadville, Colo.
The initial $500 million project involves the restart of open pit mining and the construction of new milling facilities.
Annual production is expected to total about 30 million pounds of molybdenum beginning in 2010 at estimated cash costs of about $3.50 per pound, the company said Tuesday.
The Climax mine is believed to be the world’s largest, highest grade and lowest-cost undeveloped molybdenum deposit, the company said. Construction is expected to begin in the spring.
The mill is located in the Colorado Rocky Mountains at an elevation of 11,400 feet. Ore was processed at Climax in 1918. The mine and mill were last operated in 1995.
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Construction employment will begin with 150 workers and peak at over 500. The operation will employ about 350 when production begins, the company said.