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SUMITOMO OBTAINS MINORITY INTEREST IN PHELPS DODGE LA CANDELARIA PROJECT

 SUMITOMO OBTAINS MINORITY INTEREST
 IN PHELPS DODGE LA CANDELARIA PROJECT
 PHOENIX, Arizona, Sept. 18 /PRNewswire/ -- Phelps Dodge Corporation (NYSE: PD) and Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation, both of Japan, today announced that a subsidiary of the two Sumitomo companies has obtained a 20 percent interest in the Phelps Dodge La Candelaria project in northern Chile for $40 million, plus Sumitomo's share of the total equity capital required to finance construction and development of the project.
 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 annually by the mid-1990s. The La Candelaria ore deposit, discovered in 1987 by Compania Contractual Minera Ojos del Salado, a wholly owned subsidiary of Phelps Dodge, is located near Copiapo in the Atacama region of Chile.
 Sumitomo's investment represents a 20 percent share in Compania Contractual Minera Candelaria, a Chilean contractual mining company headquartered in Santiago.
 Douglas C. Yearley, Chairman, President and Chief Executive Officer of Phelps Dodge, said, "Phelps Dodge is delighted that the Sumitomo companies have joined us in this world-class copper project. Development of the project is progressing well. We entered into a foreign investment contract with the Republic of Chile last month, and Phelps Dodge plans to begin pre-stripping of the mine site early next year."
 Akihiko Shinozaki, President of Sumitomo Metal Mining, said, "Sumitomo has established an excellent working relationship with Phelps Dodge at the Morenci, Arizona, copper mine. We look forward to enriching this relationship and establishing a mutually rewarding undertaking in Chile."
 Phelps Dodge 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 22 other countries.
 Sumitomo Metal Mining Co., Ltd. is a major Japanese mining company with diversified non-ferrous operations in Japan and with investments in mining, smelting and electronics around the world. Sumitomo Corporation is one of the leading integrated trading companies of Japan.
 -0- 9/18/92
 /CONTACT: Thomas M. Foster of Phelps Dodge, 602-234-8139/
 (PD) CO: Phelps Dodge Corp.; Sumitomo Metal Mining Co. Ltd.;
 Sumitomo Corp. ST: Arizona IN: MNG SU:


JL -- SD002 -- 1099 09/18/92 12:05 EDT
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Publication:PR Newswire
Date:Sep 18, 1992
Words:454
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