NEWS ROUNDUP — Cyprus buys stake in El Abra

New York-listed Cyprus Amax Minerals will buy a 51% interest in the Chilean El Abra copper property.

In return, Cyprus will pay US$330 million to Corporacion Nacional del Cobre de Chile (Codelco) and will arrange financing for the project. A solvent extraction-electrowinning operation is envisaged, which would produce 500 million lb. copper cathode per year, beginning in mid-1997. During the first half of the 16-year mine life, cash costs are projected at US45 cents per lb.

The total capital cost is estimated at US$1 billion, which Cyprus will finance through US$300 million in subordinate shareholder loans and US$700 million in limited recourse debt financing.