Date: Thu, 20 Nov 1997 22:41:52 GMT Server: Apache/1.2.4 Last-Modified: Tue, 17 Jun 1997 15:10:20 GMT ETag: "dd486-116b-33a6a8dc" Content-Length: 4459 Accept-Ranges: bytes Connection: close Content-Type: text/html ASARCO Southern Peru News
Southern Peru News


Southern Peru Dedicates
Sulfuric Acid Plant at Ilo

ILO, PERU, January 19, 1996 -- Peru President Alberto Fujimori headed a list of leaders who attended dedication ceremonies today for the new Sulfuric Acid Plant at Southern Peru Copper Corporation s (SPCC) Ilo copper smelter. Also attending the dedication were state ministers, congressmen, local authorities, Monsignor Hugo Garaycoa, bishop for Tacna and Moquegua; Richard de J. Osborne, chairman, president and chief executive officer of ASARCO Incorporated and a director of SPCC, and Charles G. Preble, president of SPCC.

In remarks prepared for the dedication, President Fujimori said that the construction of the Sulfuric Acid Plant reflects confidence in his government. He said that the possible new investment of $500 million in a new smelter announced by SPCC president Charles G. Preble responds to this climate of confidence in the private investment policies currently in place. He also said that foreign investment is welcome and mentioned the interest of Asarco in developing mining projects in Peru.

Speaking on behalf of SPCC, Charles G. Preble said, With an investment of $103 million, Southern Peru has modernized its Ilo Smelter with a new Sulfuric Acid Plant and the installation of a new furnace technology, called Modified El Teniente Converter. This installation permitted closing of a reverberatory furnace which operated without interruption in the Smelter during 30 years and cessation of operation of two older-design converter furnaces. With this new modern equipment, emissions from old equipment have been reduced.

Preble also said that Southern Peru has initiated studies which could lead to expansion of its mines and construction of a new smelter at Ilo which would provide world standard environmental controls. Construction of the Ilo smelter would take several years and would cost more than $500 million.

After two years of planning and construction, the Sulfuric Acid Plant began initial start-up in September and currently is producing 530 tons of acid per day. The new plant employs the best international standard of technology and will capture approximately 18% of the sulfur dioxide emissions from the Ilo smelter. When fully operational, the plant will be capable of producing 175,000 tons of sulfuric acid per year. SPCC plans to use a portion of the sulfuric acid in its SX/EW operation at its Toquepala and Cuajone mines and expects to sell the remainder on the open market.

The acid plant is one of several substantial environmental projects undertaken recently by SPCC. A new tailings storage facility will begin operation in late 1996 and a plant for treatment of waste waters from the Ilo Employee Camp has been completed. In total SPCC will spend $135 million on environmental expenditures.

SPCC is the largest mining company in Peru and one of the 10 largest copper mining companies in the world. It owns and operates two mines, a smelter and a refinery in the southern region of Peru, employing approximately 5,000 people. In 1994, it produced from its mines 267,800 short tons of copper, 3.0 million ounces of silver and 6.1 million pounds of molybdenum. Shareholders in SPCC, which is now publicly owned and traded on the New York and Lima Stock Exchanges, are ASARCO Incorporated (NYSE:AR) (54.1%); a subsidiary of the Marmon Corporation (17.7%); Phelps Dodge Overseas Capital Corporation (13.9%) and common shareholders (14.3%).



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


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