LITERATURE REVIEW SPECIAL — Cyprus Amax produces copper at El Abra mine

In northern Chile, Cyprus Amax Minerals (CYM-N) has started producing copper at the El Abra mine, seven months ahead of schedule.

The first cathode was produced from the solvent extraction-electrowinning facility in early August. Annual production is projected to be 500 million lb., beginning in 1997. Initial cash costs are projected at 35 cents per lb.

Construction on the US$1-billion-dollar joint venture with Chilean state-owned Codelco began in February 1995. Cyprus operates the open-pit mine and maintains a 51% interest. Proven and probable oxide reserves at El Abra total 800 million tons. In addition, the deposit contains a significant sulphide deposit beneath the oxide.

Milton Ward, chairman of Cyprus, is proud of the early startup. “We are now beginning to look for ways to increase production levels,” he says.

Production at El Abra is the second major development for Cyprus in South America this summer. In July, the Cerro Verde copper mine in Peru reached its expanded capacity of 105 million lb. copper per year. In 1994, the company acquired a majority interest in the operation, situated near Arequipa, and subsequently began an expansion program to increase production.

The company expects to produce 750 million lb. copper in 1996, increasing to 1 billion lb. in 1997.