Phelps Dodge (PD-N) will reopen the Ajo copper mine in southwestern Arizona.
The company plans to spend US$238 million to refurbish the former open-pit operation. Construction is scheduled to begin early in 1998, pending the completion of environmental permitting. Commercial production is targeted for late 1999.
Phelps Dodge will construct a new concentrator facility, capable of processing 38,000 tons per day, and a US$166-Million, semi-Autogenous mill.
The company will spend an additional US$72 million on upgrades to the mining equipment and other infrastructure.
Concentrates will be smelted at the company’s Hidalgo smelter in New Mexico.
At full capacity, Ajo will produce 135 million lb. copper and 25,000 oz. gold per year. The operation is expected to employ 400 people.
“This is an important step toward reaching our goal of increasing annual copper production to 2.2 billion lb. by 2002,” says Douglas Yearly, chairman of Phelps Dodge.
The mine, which shut down in 1984, contains an estimated 150 million tons of reserves grading 0.56% copper. In other news, Phelps Dodge has acquired a minority interest in Compania San Ignacio de Morococha, a leading zinc miner in Peru.
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