Suppliers Roundup (May 31, 2004)

AMEC eyes Red Chris study

London-based AMEC Engineering & Consulting Services will perform a feasibility study at bcMetals’ Red Chris copper-gold project in northwestern British Columbia.

The study will complement an ongoing 25,000-tonne-per-day study already being carried out by AMEC.

B.C. Hydro has notified the company that the proposed mine could require as much 60 MW of power, up from an earlier estimate of 30 MW. However, power lines would need to be extended from the closest centre, nearly 110 km south of Red Chris. McGregor Construction 2000 of Edmonton will provide a cost estimate for building transmission lines.

Also, the B.C. Ministry of Energy and Mines has issued permits for a 20-hole diamond-drilling program. The program will consist of thirteen 400-metre holes in the Main zone and another three in the adjacent East zone. Meanwhile, the company is analyzing information from 16,500 metres of drilling last fall.

Teck Cominco holds a 10% working interest and a 10% carried interest in the property, as well as a back-in right to 43.75% of bcMetals’ 80% interest.

AMEC generated revenue of 4.7 billion in 2003, employing 45,000 people in the U.K., continental Europe, North America, and 40 countries worldwide.

BioteQ cleans up in Arizona

The first shipment of copper from a processing plant at the former Bisbee mine in Arizona has arrived at a smelter in Miami, Fla., operated by Phelps Dodge.

April production was roughly 25 tons of concentrate, of which 18.5 tons grading 46% copper was shipped to the smelter. The copper recovered is shared equally by Phelps Dodge and Vancouver-based environmental firm BioteQ.

Copper production is expected to increase in May as commissioning tests continue. The total capital cost of the project is about US$3 million.

Meanwhile, BioteQ began startup activities in April at its Raglan plant in northern Quebec. Acid mine drainage treatment is to begin in June.

Falconbridge will own any nickel recovered from drainage, and BioteQ will charge a fixed monthly fee, as well as a variable treatment fee based on the quantity of water treated.

BioteQ’s biosulphide water treatment process recovers salable metals, generating income for the plant owner while meeting environmental standards.

Atlas Copco sheds tool business

Atlas Copco is looking to sell its electric tool business.

In 2003, the unit had revenue of US$700 million, with 3,100 employees.

The electric tool divisions sell to industrial distributors and retailers, whereas most of the company’s other divisions sell directly to industrial end-users. This has created distribution and sales problems.

Atlas Copco’s electric tool business consists of two divisions in the Industrial Technique business area: AEG Electric Tools, acquired in 1991, and Milwaukee Electric Tool, acquired in 1995. Sales are chiefly done under the Milwaukee brand, and mostly in North America.

Goran Gezelius, senior executive vice-president of the industrial technique business area, says the electric tool business is stable and profitable.

The Atlas Copco Group is a global industrial group of companies that develops, manufactures, and markets mining and construction equipment. The company has 26,000 employees worldwide.