Cominco operations in the black

With the exception of the Glenbrook nickel operation in Oregon, all of Cominco’s (TSE) operations made money in 1995.

Total operating profit for the year was $302 million, almost double the $172 million reported for 1994.

More than 47% of Cominco’s revenue is generated from zinc, with copper accounting for 21.9% and lead, 8.6%.

Despite the company’s prominence as a zinc producer, the Highland Valley copper mine, near Kamloops, B.C., remains its most profitable operation.

Cominco holds a half interest in the mine, from which its share of operating profit was $129 million in 1995, up from the $95 million generated in the previous year.

Cominco’s smelting and refining complex at Trail, B.C., which celebrates its 100th anniversary this year, produced an operating profit of $65 million in 1995, compared with $47 million in 1994.

Cominco’s 47.25% interest in the recently opened Quebrada Blanca copper mine in Chile resulted in a gain of $26 million, while the 77.5%-owned Polaris underground zinc-lead mine in Northern Canada added $24 million to company profits (up from $13 million in 1994).

The Sullivan underground zinc-lead-silver mine in southern British Columbia netted $22 million in operating profits last year, while Cominco’s newly acquired Cajamarquilla zinc refinery in Peru generated $15 million.

The Red Dog mine in Alaska managed to turn a profit in 1995, but it continues to operate below expectations. (The grade is higher than at Sullivan and Polaris, and the stripping ratio lower.)

Red Dog netted $9 million in operating profit, up from a loss of $7 million in the previous year. The mill processed 2.2 million tonnes of ore grading 19% zinc, 5.8% lead and 95 grams silver during the year, resulting in 585,200 tonnes of zinc concentrate grading 55.6% zinc (717 million lb. zinc for a 75.9% recovery) and 91,900 tonnes of lead concentrate grading 55% lead (111 million lb. lead for a recovery of 38.6%).

The discovery of a new zone of mineralization adjacent to the known deposit has prompted Cominco to plan an expansion at the mine, which may, in turn, help to lower operating costs.

The new deposit, named the Aqqaluk, contains 76 million tonnes grading 13.7% zinc and 3.6% lead. Reserves in the Main deposit stand at 52.2 million tonnes grading 19.5% zinc, 5.3% lead and 100 grams silver.

Expansion plans call for the mining rate to be increased to 3.2 million tonnes per year starting in 1998, up from the current rate of 2.3 million tonnes. The increase is expected to boost concentrate production rates by an estimated 40% over 1995 levels.