Southern Peru plans Ilo smelter upgrade

Denver — Southern Peru Copper (PCU-N) has raised US$400 million to finance modifications to the Ilo smelter, expansion of the Toquepala copper mine and construction of leaching circuits at the Cuajone copper mine.

The work is being funded with a US$600-million line of credit arranged with a group of international institutions, including Chase Securities, Citicorp Securities and Credit Suisse First Boston.

Southern Peru is evaluating two proposals for the modification of the Ilo smelter, details of which have not been disclosed. The upgrades will, in part, be aimed at reducing sulphur emissions.

The credit will also be used to expand the Cuajone project, to the tune of US$245 million, and to install new solvent extraction-electrowinning facilities at the Toquepala mine.

Southern Peru’s overall production in 2000 was up, to 751 million lbs. copper.

Meanwhile, exploration at the Los Chancas project has outlined a resource of 200 million tonnes averaging 1% copper and 0.07% molybdenum, plus 0.12 gram gold per tonne.

The company also holds a 44.25% interest in the Tantahuatay project, which has a resource of 31.2 million tonnes grading 0.78 gram gold and 9.5 grams silver.

Further drilling and metallurgical tests are planned for both Los Chancas and Tantahuatay.