Noranda moves into South America

Noranda Minerals has redirected its exploration activities — and backed it up with millions of dollars — by establishing offices in Chile and Mexico. “We felt we needed a stronger commitment geographically,” said Alex Balogh, president and chief executive officer of Noranda Minerals, a wholly owned subsidiary of Noranda (TSE). He said Noranda had gained a reputation for sticking almost exclusively to North America because of the location of its smelters and refineries in Rouyn/Noranda, Montreal and the Gaspe Peninsula (all in Quebec).

“We’re not in this business just to feed smelters,” he told The Northern Miner. “We’re in the business to find good mines.” John White, executive vice-president of mine development and engineering, said it was true that “there was a feeling we were married to our backyard.” Now, the focus is on quality mines, especially copper and gold, anywhere in the world.

Exploration funds allocated for Latin American countries have been doubled this year to $4.5 million. This figure could change, depending on what grassroots projects or acquisitions come Noranda’s way, said John Harvey, president of Noranda Exploration. “We’re working hard at generating projects,” he said.

This geographical shift into Central and South America and beyond reflects the more favorable wage rates and tax structures that exist outside the bounds of North America. Political stability and the assurance that profits can be repatriated have also contributed to a global focus, not only by Noranda but by many Canadian exploration and mining companies.

“When the geology is right it is almost irresistible,” Balogh said.

In total this year, Noranda alone has earmarked $8.2 million for grassroots exploration in Latin America, the south Pacific and elsewhere beyond North America. It has budgeted $26.8 million for North America.

These figures are strictly expenditures put out by Noranda itself on grassroots plays, not on properties in the feasibility stage. As well, it does not include spending by subsidiary companies or joint venture partners. The grand total, including expenditures by Noranda, its affiliates and joint venture partners for grassroots plays and feasibility studies, will reach $197.8 million 1991.