JOHANNESBURG (miningweekly.com) – The expansion of the Proyecto Riotinto copper mine in Andalucía, Spain, is “technically and financially robust”, a study into the feasibility of increasing capacity beyond 9.5-million tonnes a year has found.

Dual-listed Atalaya Mining reported on Thursday that it had completed the study, which is considering an expansion of up to 15-million tonnes a year, and that it would announce details in the coming weeks.

Should the miner proceed with an expansion, it could increase the mine’s production to between 50 000 t/y and 55 000 t/y.  The Riotinto mine is forecast to produce between 36 000 t and 39 000 t in 2017. Output in the first nine months of 2017 was 28 542 t.

Atalaya announced the completion of the expansion study in its third-quarter financial results statement. The miner reported revenue of €35.7-million for the September quarter, compared with €27.2-million a year earlier. Similarly, revenues for the nine months were €114.8-million, compared with €49.9-million for the same period of 2016.

Third-quarter cash costs were $2.14/lb of payable copper, an increase from $2.07/lb in the second quarter 2017. The increase was owing to higher-than-budgeted penalties and freight costs. All-in sustaining costs during the third quarter amounted to $2.33/lb, compared with $2.30/lb in the second quarter.

Earnings before interest, taxes, depreciation and amortisation of €9.3-million were reported, a significant jump from €1.9-million in the September 2016 quarter. Profit of €2.5-million was achieved, compared with a loss of €1.5-million in the third quarter of 2016.

“These financial results reflect another good quarter of operations at our Riotinto mine, which gives us confidence that our annual production will be in the guidance range,” CEO Alberto Lavandeira said in a statement.

Atalaya is also advancing the Proyecto Touro project, which it hopes will be its second operating mine in Spain. The company aims to complete a technical report, which will be at prefeasibility study level, in the fourth quarter.