U.S. REPORT Cyprus Minerals plans copper smelter expansion

Colorado- based Cyprus Minerals (NYSE) is seeking the necessary state and federal approvals to begin work on a major US$92.5 million modernization and expansion program at its copper smelter in Miami, Ariz. The company’s board of directors recently approved plans for the modernization which is expected to increase the throughput capacity of the smelter from 450,000 tons to 650,000 tons of copper concentrates annually. A mid-1992 start-up date is projected.

“This is a strategic investment which will strengthen Cyprus’ position in the copper business,” stated Kenneth Barr, chairman of Cyprus Minerals. “It will have a positive impact on our operating costs and will improve Cyprus’ competitive position in the copper industry.”

Cyprus Minerals produced about 600 million pounds of copper in 1989. The international company is also a major producer of molybdenum, lithium, coal and talc.

The expansion of the Miami smelter will involve adding an oxygen-enriched combustion process that will reduce the consumption of high-cost electric power for smelting.

The modernization is expected to lower the cost of copper produced from the Sierrita-Twin Buttes copper complex near Tucson, at Bagdad in northern Arizona, and at other Cyprus locations.

In addition, the company expects the greater copper concentrate throughput will increase the production of acid (used in leach copper operations at Miami and other locations) which should eliminate its need to buy acid from outside sources.

Cyprus recently completed a mill expansion at its copper mine at Bagdad in order to increase productivity and lower production costs. It began operations with the increased capacity in late August of this year.

The addition of a fifth grinding line is enabling the company to increase its daily mill throughput to 75,000 tons from 60,000 tons. The expansion increases Bagdad’s annual copper production by 40 million pounds to more than 220 million pounds.