Highland Valley retains giant status

It is the second-largest copper milling operation in the world (after Chuquicamata in Chile), and recent production figures only verify the ranking.

In 1994, Highland Valley Copper milled 43.48 million tonnes grading 0.419% copper and 0.007% molybdenum, to produce just over 355 million lb. of copper-in-concentrate. The concentrate also contained 3.6 million lb. of moly, 1.9 million oz. silver and 12,700 oz. gold.

Highland Valley is a private company — owned 50% by Cominco (TSE), 33.6% by Rio Algom (TSE), 13.9% by Teck (TSE) and 2.5% by Highmont Mining) — and, as such, does not release detailed financial statements.

Teck’s 1994 annual report, however, reveals that the producer contributed $20 million to that company’s operating profit, up from $13 million in 1993. The $20 million relates to Teck’s 13.9% direct interest, an indication that the mine’s operating profit was in the order of $143 million, up from $93 million in 1993.

Sales in 1994 amounted to $464.5 million, up from $274.3 million in 1993 when the mine produced 345.6 million lb. of copper-in-concentrate. The increase stemmed from a rise in copper prices (to US$1.05 from US87 cents per lb.) and a lower Canadian dollar ($1.37, compared with $1.29).