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CYPRUS COPPER ANNOUNCES COST REDUCTION PROGRAM AT SIERRITA MINE

 TUCSON, Ariz., July 7 /PRNewswire/ -- Cyprus Copper Co., the largest subsidiary of Cyprus Minerals Co. (NYSE: CYM), today announced a major cost reduction program at its Sierrita copper mine, south of Tucson. The program is part of a continuing effort started last year to cut copper production costs. Copper prices have dropped during the interim emphasizing the importance of cost reduction programs such as this. Included in this program is a workforce reduction of approximately 220 employees, all of whom will receive outplacement assistance and a severance package based on length of service.
 "Cyprus has been working on ways to reduce costs," said Milton H. Ward, chairman, president, and chief executive officer of Cyprus Minerals. "Cost reduction at all of our operations is critical to the company's success, cutting the cost of production at Sierrita and re- engineering the operation is even more important because of the mine's relatively low ore grades. Regrettably, that partially translates to the elimination of all but essential jobs."
 Other cost-saving measures include modernizing Sierrita's ore haul truck fleet, computerization of mine operations, and restructuring maintenance activities. Savings alone from this week's workforce reductions will amount approximately to $8.0 million annually. Among organizational changes at Sierrita will be a performance-based incentive program under which Cyprus will count on and reward its employees for cost and productivity improvements.
 Following this week's workforce reduction, Cyprus Sierrita will employ 700 people. The mine produced 288.5 million pounds of copper and 15.3 million pounds of by-product molybdenum in 1992 and is expected to produce at similar levels in 1993.
 Cyprus Minerals, a major producer of copper, coal, and lithium, recently announced plans to merge with Amax Inc. (NYSE: AMX).
 -0- 7/7/93
 /CONTACT: Michael Rounds of Cyprus Minerals, 303-643-5186/
 (CYM AMX)


CO: Cyprus Copper Co.; Cyprus Minerals Co. ST: Arizona IN: MNG SU:

MC -- DV006 -- 9086 07/07/93 12:55 EDT
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Publication:PR Newswire
Date:Jul 7, 1993
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