A fire at one of four solvent-extraction plants at Phelps Dodge‘s Morenci copper mine in Arizona curtailed production for four days during the report period ended Oct. 21. The fire severely damaged four of 10 mixer-settler tanks at the Metcalf SX plant, though six of the unit’s tanks have resumed operation and the mine has increased flows through its other SX plants. The company says it still expects to meet its production targets at Morenci and company-wide, with the one-time impact of the incident estimated at US$5-10 million. Phelps Dodge ended the week up $1.65 at $57.80.
The battle for control of Ashanti Goldfields moved toward its conclusion with suitor AngloGold upping its bid from 26 to 29 AngloGold shares for every 100 Ashanti shares, valuing Ashanti at roughly US$1.42 billion. The offer doesn’t match the US$1.7-billion, all-share bid from Randgold Resources, but Ashanti’s board still recommends that its shareholders accept the AngloGold offer, which includes a commitment to develop further Ashanti’s flagship Obuasi mine in Ghana. Over the week, AngloGold jumped $1.93 to US$39.47, Ashanti fell 16 to US$11.35 and Randgold slipped a dime to US$22.70.
Among the juniors, Golden Eagle International tried to reassure investors it was business as usual in Bolivia despite the fact that mining-friendly President Gonzalo Sanchez de Lozada was chased out of office on Oct. 17 after 10 days of bloody rioting. He was replaced by former vice-president Carlos Mesa. Golden Eagle, which dropped 1.5 to US16.5, operates the 5,718-oz. per year Cangalli gold mine in the Tipuani gold district of western Bolivia.
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