Metall affiliate awards mine contract

The first major contract at Turkey’s largest mine development project has been awarded by Metall Mining (TSE) affiliate Cayeli Bakir Isletmeleri A.S.

A consortium comprised of Lurgi Metallurgie GmbH of Frankfurt, Germany, and Gama Endustrie Tesisleri Imlat VE Montaj A.S. of Ankara, Turkey, was awarded a turnkey contract to engineer, supply and construct a 600,000-tonne-per-year mineral processing plant for treating complex sulphide ores, at Cayeli, in northeastern Turkey.

Cayeli Bakir is a joint venture company of Etibank, the Turkish state-owned mining company, and Metall. Together, Etibank and Metall control 94% of the Cayeli shares. The remaining 6% is owned by Gama.

All related surface infrastructure as well as the expansion of nearby port facilities at Rize are also included in the contract, which is worth more than US$50 million. Construction will be completed before the end of 1994. Lurgi is one of the largest engineering firms in Europe and operates worldwide, specializing in mineral, chemical and petrochemical plants. It is also a world leader in the design of environmental cleanup projects and recycling plants. Gama is a major Turkish construction firm in the commercial, industrial and heavy civil fields with projects throughout Turkey, the Near East and parts of Europe.

The Cayeli deposit contains some 10.6 million tonnes averaging 4.7% copper and 7.3% zinc, enough to sustain the mining operation for 15 years and to create 500 new direct jobs, Metall says. Another 15 million tonnes are considered to be in the “possible” category.

A total of about US$150 million will be spent to develop the underground mine, the processing facilities and an adjacent

hydroelectric power plant.

Project financing will be provided through an international banking consortium under the leadership of International Finance Corp. in Washington, D.C.