Apex OKs San Cristobal

The report period ended Dec. 14 culminated in the Federal Reserve’s delivery of a widely anticipated 25-basis-point increase in the target overnight interest rate to 2.25%. Meanwhile, the wider markets rallied as the U.S. dollar firmed, with both the Dow Jones Industrial and the S&P 500 indices jumping 2.2% to 10,676.45 and 1,203.38 points, respectively.

The biggest mining news was that Denver’s Apex Silver Mines, after many years of waiting for silver prices to recover, had decided to develop the huge San Cristobal silver-zinc deposit in southwestern Bolivia. The US$585-million, open-pit mine is expected to produce 22 million oz. silver annually at a cash-operating cost of US$1.31 per oz. in the first five years. Over at least 16 years, a 40,000-tonne-per-day mill will process 229 million tonnes grading 63.28 grams silver per tonne, 1.6% zinc and 0.59% lead, from which will be produced zinc and lead concentrates. Still, Apex slipped US55 to US$17.13.

Anglo American agreed to sell to a group of investors its remaining 25.1 million shares (a 4% stake) in Sioux City, Iowa-based nitrogen-products maker Terra Industries for US$7.50 apiece, for a total of US$188 million. Anglo slipped US38 to US$22.78, while Terra shares jumped 6% to US$8.42 on the Big Board.

Richmond, Va.-based James River Coal plummeted US$7.00, or 14%, to US$42.75 after reporting a 15% fall in third-quarter output to 2.2 million tons of steam and industrial-grade coal. On the plus side, revenues rose 13% to US$88 million and there was a small profit. Just a year ago, J.R. was tied up in bankruptcy proceedings.