Candelaria expanded ahead of schedule

Phelps Dodge (PD-N) has completed expansion of the Candelaria copper operation in northern Chile more than eight months ahead of schedule and US$30 million below budget.

The company began the expansion 18 months ago by constructing a second semi-autogenous ball mill and new concentrator facilities, including flotation tanks. Phelps Dodge began feeding ore to the revamped mill on Oct.

31.

Further testing is necessary before commercial production can begin, in August of next year.

By expanding Candelaria, Phelps Dodge hopes to double the milling capacity and increase the mining rate accordingly. As a result, the mine life will be reduced to 19 from 35 years.

The expansion, which cost just over US$300 million (or 10% below the budgeted cost), is expected to raise annual copper output to 380 million lbs.

Phelps Dodge owns an 80% interest in Candelaria, with Japan-based Sumitomo holding the remainder.

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