BASE METALS SPECIAL — Phelps Dodge to expand Candelaria

By 1998, Phelps Dodge (PD-N) expects to double copper production at the Candelaria mine in Chile.

The company will invest US$338 million in a second semi-autogenous mill and an expanded concentrator.

The expansion will provide 200 new jobs and boost to 130 million lb. Phelps Dodge’s share of annual copper production. This is equivalent to a 9% increase in total production.

The company’s long-term goal is to have produced 2 billion lb. by the early part the next century.

The expansion will reduce Candelaria’s estimated mine life to 19 from 35 years.

Phelps Dodge owns 80% of the open-pit operation, which started up in 1994. A subsidiary of Sumitomo Metal Mining of Japan holds the remainder.