Southern Peru gets funds for expansion

Having arranged a multi-Million-dollar loan, Southern Peru Copper (PCU-N) is embarking on a program aimed at expanding and modifying its operations.

The first stage in the project calls for expansion of the Cuajone copper mine in southernmost Peru. The work is expected cost US$245 million and be completed in early 1999.

The company will then direct its attention to the Ilo smelter, on Peru’s southern coast, where a flash furnace and converter section will be installed.

During the upgrading, completion of which is scheduled for 2003, the smelter will continue to operate its existing furnaces and converters. Ultimately, the facility will be capable of recapturing 95% of the sulphur.

To finance the project, Southern Peru has committed to a 7-year loan facility, totalling US$600 million, with a group of international institutions.

Southern Peru, which is 54%-owned by Asarco (AR-N), is the largest mining company in the country.