The mining giant said the proposed development of a large scale zinc-lead-copper pit at the mine had the potential to extend the life of the combined operations to beyond 2060.

“The proposed development forms part of Xstrata’s long term strategy to sustain the future of Mount Isa Mines through expanded mining and concentrate production,” Xstrata Copper North Queensland chief operating officer Steve de Kruijff said.

“Our aim is to sustainably manage our growth opportunities as well as our environmental and community obligations.”

The pre-feasibility study will begin this month and is expected to be completed in early 2013.

The study will include new drilling to upgrade resource classification, geotechnical and mine design work and planning for logistics and cost of relocating major infrastructure on site.

Other work to be carried out will include metallurgical, environmental, infrastructure and financial studies.

Xstrata will also consult with the community to ensure socio-economic, environmental and community interests are addressed within project planning.

Subject to the PFS getting the nod, Xstrata will then progress to feasibility stage and full environmental assessment beginning in 2013.

In May, Xstrata Mount Isa Mines announced it would expand existing mines, as well as the potential development of new mines but would shut down its smelting and refining operations by 2016 following a review of a $3 million concept study.

Findings from the study indicated the potential to mine and process at least 340 million tonnes of zinc-lead ore and 130Mt of copper ore by large scale open pit mining.