January 14, 2008
TSX: BAJ
PRESS RELEASE
BAJA
MINING ORDERS LONG LEAD ITEMS
Baja Mining Corp. (the
“Company”) 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”
JOHN W. GREENSLADE,
PRESIDENT
For further
information please contact John Greenslade,
President, at (604) 685-2323
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.
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