Phelps Dodge could expand exploration activity in Canada

The company has not been active in Canadian exploration for the past several years, but it has maintained a low key presence and a phone number listing in Toronto for its wholly-owned subsidiary Phelps Dodge Corp. of Canada.

“There has been some general talk” about beefing up the company’s exploration activity in Canada, but no details have been finalized, said D. A. Firth, a Toronto-based consultant to Phelps Dodge for more than ten years.

“More information could possibly be available later this summer,” he said. But he added, “The details regarding who, where and how much money would be available for a new office in Canada have yet to be worked out.”

Firth said the company would likely make some kind of an official announcement later this year, once all the details have been finalized.

Phelps Dodge had previously been active in Canada during the 1970s, but unfavorable federal and provincial tax legislation prompted the company to reduce its involvement.

Last year the company spent some $12.1 million on exploration, 55% of which was spent in the United States, with the balance spent principally in Botswana, Chile, Mexico and South Africa. Emphasis was placed on precious metals and base metal sulphide deposits.

This year’s worldwide exploration budget is reported to be at about the same level as last year.

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