Chinese mining company Chinalco Mining is set to commence its proposed $1.32bn expansion project for its Toromocho copper mine in central Peru that is expected to increase mine's capacity by 45%.

The construction of the project at the mine located Morococha mining district in Yauli-La Oroya province is expected to be completed by the second quarter of 2016. Toromocho is estimated to have mine life of 26 years with this expansion project.

Chinalco, meanwhile, is planning to fund the project cost through internal working capital, funds raised from initial public offering that were originally intended for acquisition costs and debt financing.

The company has planned to commence the operations at the mine during the fourth quarter of 2013, while full production is expected during the third quarter of 2014.

Chinalco had invested $3.5bn funds to develop the mine that is expected to produce 250,000 tons of copper per year, reported The Wall Street Journal citing Peru’s Mines and Energy Ministry.