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Gold/Mining/Energy : Canmine resources -- Ignore unavailable to you. Want to Upgrade?

To: Marshhawk who wrote (2760)	5/1/2001 5:59:47 PM
From: Marshhawk	Read Replies (2) \| Respond to of 2769

Australia's Anaconda Upbeat On April Nickel Output CANBERRA (Dow Jones)--Australian miner Anaconda Nickel Ltd. (A.ANL) is confident record output in March from its controversial Murrin Murrin operation can be repeated in April, with operating costs continuing to fall, it said Tuesday. The company was commenting in a statement to the Australian Stock Exchange on its calendar first quarter of 2001. Nickel dispatched in the first quarter at Murrin Murrin was 5,714 metric tons, 34% up on the 4,273 tons in the previous quarter and more than three times the 1,836 tons in the 2000 first quarter. Cobalt dispatched reached 361 tons, up from 295 tons in the previous quarter and way up from 110 tons in the 2000 first quarter. "Production recorded in March alone was 2,659 tons nickel and 163 tons cobalt and production for the month of April is expected to consolidate this improvement, demonstrating the integrity of the company's ramp-up schedule," the company said in a statement. Anaconda said the production performance, which saw cash operating costs fall to US$1.32 a pound of nickel in the first quarter, came 15 months after mechanical completion of the operation by engineering concern Fluor in December 1999. Fluor's lump sum contract completion date was 12 months behind schedule, Anaconda said. The company said ramp-up of the operation proceeds to plan, with operating costs continuing to decrease to forecast levels, with cash operating costs in the first quarter already in the bottom quartile of the world nickel industry. "Production increasing to 100% of design is expected to be made with all fixed and variable production costs being absorbed in the first 70% of the ramp-up schedule," the company said. Anaconda holds a 60% stake in Murrin Murrin, with the balance held by Switzerland-based Glencore International AG (Z.GNC). (MORE) Dow Jones Newswires 01-05-01 0129GMT New Equity, Debt Talks Advanced Anaconda reported 86% nickel recovery in March, compared with 83% in the whole first quarter and up from 74% recovery in the 2000 last quarter. The company said nickel production in the first nine months of this fiscal year, which ends June 30, was 14,106 tons, or 92% of that budgeted for the period. "The operations and senior technical team at Murrin Murrin have complete confidence in meeting its rampup production and cost forecasts," it said. "Notional revenues based on March production at spot prices now exceed operating costs and capital costs." Major shareholders in Anaconda include Anglo American PLC (AAUK) with 25.4%, Glencore International with 20.9% and Canada's Sherritt International Corp. (T.S) with 10%. Anglo American wants to remove the executive management and the majority of nonaligned independent non-executive directors of the company and the matter will be decided at an extraordinary general meeting scheduled for May 31. In particular, Anglo American wants to remove Anaconda Chief Executive Andrew Forrest and Chief Financial Officer Michael Masterman and says it "no longer has faith in the board as currently constituted" given the substantial delays in achieving production targets. Meanwhile, Anaconda has appointed Morgan Stanley to evaluate all options available to shareholders to maximize value, while New York-based Berenson Minella & Co. has been appointed to facilitate equity and debt injections into the company, it said. "Negotiations for substantial injection of debt and equity (are) at an advanced stage," Anaconda said. --------------------------------------------------------------------------------