SHERPA vs. Teck & Mitsubishi: Cost Analysis of the Zafranal Copper Project

Teck Resources and Mitsubishi Materials are advancing the greenfield development of the Zafranal copper project in southern Peru. With reported capital costs of US$1,019M and operating costs of US$9.28/t, the project reflects feasibility-stage planning that emphasizes throughput efficiency and conventional plant design—but may limit allowances for indirects and logistical complexity.

How do these figures compare to an independent, standardized model?

Costmine Intelligence used SHERPA—our proprietary cost modeling software—to replicate Zafranal’s core assumptions and generate capital and operating estimates based on current market rates, location-adjusted inputs, and a fully scoped cost structure. SHERPA integrates labor, equipment, materials, energy, and indirects—applying consistent logic to categories often minimized in early-stage estimates, such as construction management, owner’s costs, and escalation.

The result: SHERPA estimates capital costs at US$1,188M, reflecting broader allowances for remote infrastructure, mobilization, and contingency. Operating costs come in at US$16.00/t, driven by the inclusion of indirect labor, site services, and full overhead structures not typically detailed in company filings.

This analysis underscores the value of benchmarking greenfield project costs against an independently built model. Omitting key cost drivers at the feasibility stage can introduce blind spots into execution planning, funding strategies, and investor communications.

Fill out the form to access the full Excel file, which includes line-by-line SHERPA capital cost outputs, an operating cost breakdown by category, direct comparisons with Teck & Mitsubishi’s disclosed figures, core modeling assumptions, and life-of-mine cumulative cost comparisons.

Whether you’re evaluating a greenfield asset, reviewing a feasibility study, or assessing investment risk, this file provides a transparent, apples-to-apples view of how internal estimates compare to independently benchmarked project costs.