Cyprus Climax Metals, a wholly owned subsidiary of Cyprus Amax Minerals (NYSE), has acquired 91.5% of a government-owned company which operates a copper mine in Peru.
The 20-year-old Cerro Verde mine produces 20,000 tons of copper cathode annually by means of solvent extraction-electrowinning, and 11,000 tons of copper-in-concentrates from a 3,300-ton-per-day mill.
Cyprus paid US$34 million for the interest and expects to invest a further US$375 million to modify and expand the operation.
The improvements are expected to span four years and include two phases. The first will involve expanding annual leach production to 48,000 tons copper, while the second will entail construction of a 30,000-ton-per-day concentrator.
It is believed the property has the potential to produce 250 million lb. copper per year.
Reserves are estimated at 650 million tons grading 0.68% copper.
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