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CYPRUS ESTIMATES ARIZONA RAIN DAMAGE; SELLS PART OF LTV CLAIM

 DENVER, April 6 /PRNewswire/ -- Cyprus Minerals Co. (NYSE: CYM) today announced that it estimates that the effects of record heavy rains and flooding which occurred at its Arizona copper operations in late 1992 and early 1993 will reduce first quarter copper earnings by approximately $23 million, before taxes. The company also said that it expects that the rain damage will lower 1993 copper production by about 20 million pounds in the first quarter and 15 million pounds during the rest of the year. The rain impacted mining conditions, diluted leach copper solutions and disrupted rail transportation. Cyprus is in the process of making an insurance claim for business interruption and property damage, but no estimated insurance recovery has been included.
 The company also announced that it has sold slightly under 25 percent of its claim against LTV Steel Co. Inc. The after tax profit resulting from this transaction is approximately $16 million which will be recorded in the first quarter. In addition, as part of its efforts to redeploy assets from its non-core businesses to core businesses, the company sold its interest in a Mexican zinc operation. This March sale will not significantly affect first quarter earnings.
 Milton H. Ward, Cyprus Minerals' chairman, president, and chief executive officer, said, "We are continuing to implement programs to achieve significant reduction in our copper costs and incrementally increase our copper production. Although the heavy rains in Arizona were a setback, we believe that the full year 1993 cost problems that resulted from the rain have been fully reflected in the first quarter. Our copper production target for the full year 1993 is about 675 million pounds, versus our original plan of slightly over 700 million pounds. We continue to look at projects which will allow us to increase copper production. It is difficult to plan for rains of this magnitude, but we are in the process of engineering additional catch basins, drainage systems and pumping stations that will help mitigate such events in the future.
 "As a result of recognizing the rain related costs in the first quarter, we expect first quarter earnings will be near break-even before considering the gain from the sale of the LTV claim. In addition, as a form of low cost insurance, Cyprus has acquired put options which will ensure a minimum average realization of about 94 cents per pound on 624 million pounds in 1993 and at 92 cents per pound on 150 million pounds for first quarter 1994," Ward said.
 Cyprus Minerals, based in Englewood, Colo., is a major producer of copper, coal, molybdenum, and lithium. The company also produces gold and iron ore.
 -0- 4/6/93
 /CONTACT: Michael Rounds of Cyprus Minerals, 303-643-5186/
 (CYM)


CO: Cyprus Minerals Co.; LTV Steel Co. Inc. ST: Colorado IN: MNG SU:

MC -- DV008 -- 3508 04/06/93 14:53 EDT
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Date:Apr 6, 1993
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