Date: Thu, 20 Nov 1997 22:40:46 GMT Server: Apache/1.2.4 Last-Modified: Tue, 17 Jun 1997 15:10:29 GMT ETag: "dd48a-1034-33a6a8e5" Content-Length: 4148 Accept-Ranges: bytes Connection: close Content-Type: text/html ASARCO Southern Peru News
Southern Peru News


Southern Peru Copper Corporation
Inaugurates SX/EW Plant

TOQUEPALA, PERU, July 1, 1996 -- The president of the Republic of Peru, Alberto Fujimori, Friday inaugurated a new Southern Peru Copper Corporation (SPCC) solvent extraction/electrowinning plant (SX/EW) at Toquepala, which will increase Peru's domestic copper production by 9%.

Speaking at the ceremony, President Fujimori stated that Southern Peru "is a partner in the economical strengthening of the country,", since the SX/EW plant represents the second largest investment to be put on-line in Peru this year. He said this symbolizes the confidence the business sector and employees have in the fiscal discipline and cohesion with which the country's economy is being managed.

Charles G. Preble, president of SPCC, said at the ceremony that the SX/EW installation would produce 40,000 tons per year of copper cathodes, an increase of 15% in SPCC's production and 9% in national production.

The SX/EW plant was constructed at a cost of US$103 million and will recover copper from low grade deposits from the mine at Toquepala and from oxide ores at the Cuajone mine.

The product produced by the SX/EW plant is copper cathode with 99.999% purity at an approximate weight of 50 kilograms and is highly esteemed for its quality on the world market.

Various regional and government authorities were present at the ceremonies, including the Minister for Labor Jorge Gonzalez lzquierdo, the Vice Minister of Mining, Juan Mendoza, members of Congress and mayors from the southern region of the country, as well as Mons. Hugo Garaycoa, the Bishop of Moquegua and Tacna, who blessed the installations.

Preble announced that SPCC has been studying an increase in its mining capacity by 70% to take advantage of new mineral reserves at its mines at Toquepala and Cuajone. Plans are being made for new investments and an expansion program which will enable Southern Peru to produce up to 500,000 short tons of copper annually in the future.

Preble also said that work is currently underway to expand SPCC's Sulfuric Acid plant, inaugurated at the beginning of this year at the Ilo smelter. The new installation will increase production of sulfuric acid from 150,000 to 272,000 tons per year at an investment cost of US$35 million. The expansion also will enable SPCC to increase the collection of sulfur dioxide in the copper smelting process from 18% to 30%, improving the company s environmental protection programs.

The SX/EW plant was financed with loans from the Corporacion Andina de Fomento (CAF) and Southern Peru's own resources. SPCC is the largest mining company in Peru and among the eight largest copper producers in the world. The company employs 5,000 people and operates the mines at Toquepala and Cuajone, as well as a smelter and refinery at Ilo.

Shareholders of Southern Peru Copper Corporation are ASARCO Incorporated (NYSE:AR) (54.1%); a subsidiary of the Marmon Corporation (15.0%); Phelps Dodge Overseas Capital Corporation (l3.9%) and common shareholders (17.0%). SPCC shares are traded on the Lima and New York Stock Exchanges.



FOR FURTHER INFORMATION:
Jerry W. Cooper (212) 510-1810
Donald M. Noyes (212) 510-1813


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