LATIN AMERICA — Alumbrera improves performance

With startup problems behind it, the Alumbrera copper-gold mine in northwestern Argentina was close to breaking even in 1998.

The open-pit mine, owned 25% by Rio Algom (ROM-T), achieved commercial production in early 1998. By year-end, the operation reached or exceeded most of its design objectives. However, a rocky start combined with amortization costs related to initial investment in the project resulted in a $5-million loss for Rio Algom.

This year’s goal is to maintain the mines design capacity of 80,000 tonnes per day. Should this be accomplished, Rio Algom’s projected share of production will be 100 million lbs. copper and 160,000 oz. gold.

At year-end 1998, reserves at Alumbrera stood at 644 million tonnes grading 0.51% copper and 0.62 gram gold per tonne. Current reserves are expected to support the mine for about 19 years.