Cominco buys zinc refinery

By purchasing an interest in a Peruvian refinery, Cominco (TSE) has boosted its zinc-producing capacity.

The company has acquired 83% of the shares of the Peruvian company that owns the Cajamarquilla zinc refinery. The remaining shares will be held by Marubeni of Japan.

The purchase price is US$108 million, including an initial payment of US$61 million. The remaining US$47 million will be payable over the next 14 years at an interest rate of 7.2%.

The refinery has operated since 1981 and has an annual capacity of 100,000 tonnes.

The purchase significantly adds to Cominco’s existing zinc capacity of 270,000 tonnes per year at its refinery in Trail, B.C.