Teck Corp.'s Dean on Antamina Mine, Copper Markets: Comment
9/20/0 21:3 (New York)
Melbourne, Sept. 21 (Bloomberg) -- Steven Dean, president of
Teck Corp., a Vancouver-based copper, zinc and coal producer,
comments on Peru's Antamina copper mine and world copper markets.
He was speaking at the ``Mining 2000'' conference in Melbourne.
On the Antamina mine:
``Antamina is one of the largest and most exciting
greenfields mining projects ever to be undertaken.'' Copper
equivalent grade of 1.8 percent is ``among the highest of the
large new-era copper projects developed over the last decade.''
The copper cash cost will be less than 30 cents a pound, and
total operating cost including interest and depreciation ``is
expected to be under 60 cents a pound.''
``The low cost, combined with the long life of the project,
should ensure its long-term profitability, almost regardless of
the metal prices, in recent historical trading ranges. It should
be able to take advantage of the inevitable highs in the copper
cycle throughout its life.
``The annual production is expected to increase Peru's mining
exports by 30 percent and the country's GDP by 2 percent.
``We feel strongly that the timing of Antamina was right, and
the probability of the mine starting up in a time of favorable
commodity prices is high.''
On Peruvian politics:
``We continue to have support through the changes that have
occurred in Peru. More recently you may be aware Fujimori has
resigned, but we don't see any impact at all on this project in
relation to that.''
On bids for Rio Algom Ltd., its partner at Antamina with Noranda
Inc.:
``In the last several weeks ... Rio Algom, our partner in
this project, and in fact several other projects in North America,
has been the focus of attention with two competing bids.
``This attention is attributable in large part to the growing
recognition of the true value'' of Antamina. ``the value we still
think is under-recognized, but at least ... Rio's stake in
Antamina is being recognized.''
On copper markets:
``Over the last five years, over $10 billion has been spent
on copper projects and expansions, primarily in Latin America.
Most of these ore bodies have been discovered for decades.
``The fact that copper consumption growth has absorbed the
mega-projects and expansions of the last five years is encouraging
of a strong outlook for the copper business today.
``Annual copper production has risen by around 7 billion
pounds since 1993, that's over 35 percent. This represents an
annual growth rate of around 4 percent. This trend we expect will
continue as the world continues to buy higher end-products. An
example of why copper consumption is so robust can be seen in the
area of new homes and new cars, which now consume twice the amount
of copper they did in the early 80s. This is remarkable given that
many new homes no longer use copper piping.''
--Stephen Wisenthal in Melbourne (613) 9228-8736, or at
swisenthal@bloomberg.net, through the Sydney newsroom pt |
