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PHELPS DODGE ANNOUNCES DEFINITIVE FINANCING AGREEMENTS FOR LA CANDELARIA PROJECT IN CHILE

 PHOENIX, Ariz., June 9 /PRNewswire/ -- Phelps Dodge Corporation (NYSE: PD) today announced that definitive agreements have been executed with a group of lenders for $290 million of limited recourse financing for its La Candelaria copper-gold project in Chile.
 The group of lenders are the Export-Import Bank of Japan with $200 million; the Overseas Private Investment Corporation (OPIC) with $50 million; Banco de Chile with $30 million; and Kreditanstalt fur Wiederaufbau with $10 million. The initial loan drawdown is expected to occur in July.
 Phelps Dodge owns an 80 percent interest in the La Candelaria project and a subsidiary of Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation, both of Japan, owns a 20 percent interest.
 La Candelaria is a major copper-gold deposit with ore reserves of approximately 400 million tons at an average grade of 1.1 percent copper and containing an estimated 3 million ounces of gold. The project will consist of an open-pit mine, concentrator, port and associated facilities. Phelps Dodge, which will operate the facility, expects the project to produce more than 200 million pounds of copper and 80,000 ounces of gold annually. La Candelaria is scheduled to begin production in early 1995. The La Candelaria deposit, discovered in 1987 by Phelps Dodge, is located near Copiapo in the Atacama region of Chile.
 Douglas C. Yearley, Chairman, President and Chief Executive Officer of Phelps Dodge, said, "Completion of the financing represents an important step in the development of the La Candelaria project. Phelps Dodge and the Sumitomo companies appreciate the support shown by the lender group in financing this important U.S.- Japanese joint venture, and particularly recognize the lead role taken by the Export-Import Bank of Japan."
 Phelps Dodge Corporation is the world's second largest producer of copper. The company is also one of the world's largest producers of carbon black, the leading North American fabricator of wheels and rims for medium and heavy trucks, a major manufacturer of magnet wire and specialty conductors, and has operations and investments abroad in mines and wire and cable manufacturing facilities. The company's operations are located throughout the United States and in 24 other countries.
 -0- 6/9/93
 /CONTACT: Thomas M. Foster of Phelps Dodge, 602-234-8139/
 (PD)


CO: Phelps Dodge Corp. ST: Arizona IN: MNG SU: FNC

JL -- SD002 -- 0141 06/09/93 11:54 EST
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Publication:PR Newswire
Date:Jun 9, 1993
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