Baja Mining Corp.
TSX : BAJ

Baja Mining Corp.

January 14, 2008 13:16 ET

Baja Mining Orders Long Lead Items

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2008) - Baja Mining Corp. (the "Company") (TSX:BAJ) is pleased to announce that it has placed orders for the Construction Camp and several critical path items, with long delivery times, in order to keep the overall schedule on track for start-up of the Boleo copper-cobalt project at Santa Rosalia, Mexico.

Construction Camp

The anticipated peak work force during construction is anticipated to be approximately 2,500 people. The construction camp will be built in two phases, with the first phase being able to accommodate 1,000 workers. The company has now awarded the contract for the construction of the first phase of the camp, with expected completion in the second quarter of 2008. With over 100 people currently on site, the early delivery of the main camp will enable the accelerated pace of construction to continue. All of the water for the camp and construction, prior to startup of the process plant, will be provided by a reverse osmosis desalination plant which has also been purchased. It is anticipated that the second phase of the camp, with capacity for up to 2,200 workers, will not be required until 2009.

Acid Plant and Power Generation Facilities

The Acid Plant and Power Cogeneration (cogen) Plant are both critical path items in the construction schedule. Accordingly, to ensure their timely availability in 2009, the Company has placed the order for a 46 megawatt turbine and generator (TG) set which has been identified as the single longest lead item. The cost of this TG package is approximately US$10 million. Delivery is expected in 18-22 months. The Cogen Plant is an integral part of the acid plant and utilizes heat recovered from the burning of sulphur to generate power. When fully operational, it is anticipated that this facility will provide almost all of the power required for the mine and process plant. In addition, the Company has issued a "Letter of Award and Limited Authorization to Proceed" to SNC-Lavalin Engineers & Constructors Inc. for basic engineering and procurement services for the 2400 tonnes per day acid plant, complete with heat recovery system and the 46 MW turbo generator package. The parties are currently working on concluding a definitive agreement for all services; however work has commenced based on the award.

Site Activities

Baja Mining Corp. is pleased to advise that site work at the Boleo project, Santa Rosalia, Mexico is proceeding on a timely basis for the start of construction. Initial work over the past several months consisted of a cactus removal, quarantine and relocation program at the proposed plant location and construction camp site in accordance with our environmental permits. The Company and the local authorities of Santa Rosalia have also been working in a cooperative effort to remediate the town's existing landfill, located on the Company's land, and to develop a controlled facility in a new location to the north on land being donated by the Company for such purpose. In addition, geo-technical drilling and testwork has been ongoing for the last few months at the process plant and tailings dam locations to enable an early start of construction. The Company will be continuing to place orders for long lead items over the next few months.

ON BEHALF OF THE BOARD OF DIRECTORS OF BAJA MINING CORP.

JOHN W. GREENSLADE, PRESIDENT

Some of the statements contained in this release are forward-looking statements, such as statements that describe the Company's timing of placement of and expected number of construction workers on site, expected timing of delivery of long lead items, such as the acid plant, expect, and other statements. Since forward-looking statements are not statements of historical fact and address future events, conditions and expectations, forward-looking statements by their nature inherently involve unknown risks, uncertainties, assumptions and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by such forward-looking statements. Material factors that could cause actual revenues to differ materially from those contained in such forwarding-looking statements include (i) fluctuations on the prices of copper, cobalt, zinc and manganese, (ii) interpretation of contract terms, (iii) accuracy of the Company's and consultants' projections, (iv) the Company's ability to finance, receive permits for, obtain equipment, construct and develop the El Boleo Project, (v) the effects of weather; operating hazards; adverse geological conditions and global warming, (vi) impact of availability of labor, materials and equipment; and (vii) changes in governmental laws, regulations, economic conditions or shifts in political attitudes or stability.

These forward-looking statements represent the Company's views as of the date of this release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on any forward-looking statements.

Contact Information

  • Baja Mining Corp.
    John Greenslade
    President
    (604) 685-2323
    (604) 629-5228 (FAX)
    Website: www.bajamining.com