With a total investment of $406 million, Canadian based mining exploration company Tahoe Resources (TSX:THO & NYSE:TAHO), through its subsidiary Minera San Rafael SA, could become one of the largest silver producers in the world, says Industrial Info Resources (IIR).
According to the Texas-based industrial research company, the Vancouver-based miner, which bought the project from Goldcorp, may reach a leading position in the silver market thanks to its flagship Escobal project in southeastern Guatemala, approximately 70 kilometres from Guatemala City.
The company announced in early May an investment of $500 million to extract the 300 million ounces estimated at the site.
According to local newspaper El Periodico, Tahoe Resources executives are only waiting for the Ministry of Energy and Mines (MEM) to authorize the operating license for Escobal, in San Rafael Las Flores, Santa Rosa, in order to accelerate construction of a plant.
The investment is divided into $326.6 million for construction of the project, $102 million for equipment and machinery, $70 million in purchases and services during construction work, plus $25 million in annual purchases and services in Guatemala and another $17 million in annual payment of wages for their workers, said the company in March.
Carlos Morales, managing director of Minera San Rafael, a subsidiary of Canadian Tahoe Resources, said that estimates are that production will last for 19 years – extendable if there are more reserves-, and 2 years of technical closure of the mine.
(Image: Overview of Escobal mine area, courtesy of Tahoe Resources)