SOURCE: STRACON GyM

STRACON GyM

November 19, 2012 18:49 ET

STRACON GyM Is Awarded Works for the Development and Operation of Hudbay's Constancia Copper Project in Cusco, Peru

LIMA, PERU--(Marketwire - Nov 19, 2012) - STRACON GyM (www.stracongym.com.pe), a subsidiary of Graña y Montero S.A.A., is pleased to announce it has entered into an alliance agreement with Hudbay Peru S.A.C., a subsidiary of Hudbay Minerals Inc., to provide earthmoving and mining services for the development of Hudbay's Constancia copper project, located in the Chamaca, Livitaca and Velille Districts, Province of Chumbivilcas, Department of Cusco, Peru. The scope of work under the five (5) year agreement includes initial construction of the Tailings Management Facility (TMF) and mine pre-stripping activities over a two year period with an approximate value of US$300MM, followed by production mining and ongoing TMF construction works for the remainder of the contract with an additional value of approximately US$500MM.

STRACON GyM's Chief Operating Officer, Steve Dixon, stated that "STRACON GyM very much looks forward to further building upon the relationship established with Hudbay, working with all project stakeholders to ensure the successful delivery of Constancia Project."

Hudbay acquired the Constancia copper porphyry project in 2011. In August 2012 Hudbay's board of directors approved a US$1.5 billion investment to fund the development and construction of the project. Constancia is expected to produce approximately 85,000t of copper per annum over a 15.3 year mine life, with initial production in late 2014, followed by full production in quarter two 2015.