Inmet boosts Cayeli stake (March 14, 2002)

As expected, Inmet Mining (IMN-T) has increased to 55% its interest in the Cayeli copper-zinc mine in eastern Turkey. The polymetallic miner had 49% until the recent transaction.

In 2002, Cayeli produced 33,000 tonnes copper and 25,300 tonnes zinc at a production cost of US$1,170 per tonne copper. Production was down and costs up from a year ago; however, the mine is expected to process more ore in 2002, as a strike hindered production last year.

Inmet also owns a 100% interest in the Troilus gold mine in north-central Quebec and an 18% stake in the Ok Tedi copper-gold mine in Papua New Guinea. The remaining interest in the latter operation is divided among a private company, with 52%, and the government, with 30%.

In 2001, Troilus cranked out 162,600 ounces at a cash production costs of US$232 per oz. Production was up and costs down substantially from the previous year, owing to higher headgrades and throughput rates.

Production at Ok Tedi during the final quarter of 2001 fell to 45,300 tonnes copper and 100,700 oz. gold, against 55,900 tonnes copper and 130,300 oz. gold in the corresponding quarter of 2000.