BHP shuts sulphide stream at Pinto Valley

As a result of sustained lower copper prices, Australian major Broken Hill Proprietary (BHP-N) will shut down sulphide operations at the Pinto Valley copper mine, near Miami, Ariz.

BHP called a halt to the treatment of sulphide ores as a way of lowering its overall cash costs.

BHP “cannot continue to operate Pinto Valley at full capacity,” said senior vice-president Harry Smith.

Smith blames the sagging price of the red metal saying, “a 1cents decline in the price of copper cuts US$1.5 million from Pinto Valley’s potential profit. At current prices, Pinto Valley’s sulphide operation is not viable.” Copper prices have hovered around the 75cents mark for the last month, with little relief in sight.

BHP plans to continue mining overburden for a short time to maximize copper reserves when prices rebound. Leaching and solvent extraction-electrowinning will continue at both the Pinto Valley and Miami units.

As a result of the shutdown, the company will lay off 447 of the mine’s 598 employees. Those laid off will continue to receive normal wages and benefits for a 60-day period.

In fiscal year 1997, the mine’s sulphide operation produced 253,000 tonnes of concentrate, for 151 million lbs. copper, while leaching facilities pumped out 40 million lbs. copper.

In 1998, the mine is expected to produce 35 million lbs. copper from the leaching circuit.

BHP is also having troubles at its 53%-owned Ok Tedi copper operation in Papua New Guinea. Copper concentrate production was down 34% in January due in part to unseasonably dry weather, which hampered mining and milling at Ok Tedi. Rainfall in December and January, however, provided an opportunity to resume export shipments, the first since August of last year.