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*Moly Output In 2005 By Highland Valley / Canada Is Anticipated To Decrease By 50%
= Tec Cominco, Planned To Produce 5 Million Lbs. Of Moly In 2005
  It was known in this week that Highland Valley Copper, a subsidiary of Tec Cominco in Canada, is anticipated to produce 5 million lbs. of molybdenum in molybdenum concentrates in the next year - 2005. For a reference, this Canadian company is expected to produce approximately 10 million lbs. of molybdenum in molybdenum concentrates in this year - 2004 and, therefore, the output of molybdenum in 2005 is decreased by 50%.

  According to the settlement of accounts for the third quarter ( July- September ) of 2004 released by Tec Cominco, Highland Valley Copper produced 2.5 million lbs. of molybdenum in molybdenum concentrates in the third quarter of 2004, compared with that ( 2.0 million lbs. ) in the same quarter of 2003. Consequently, the total quantity of molybdenum in molybdenum concentrates produced by Highland Valley Copper in the first 9 months ( January - September ) of 2004 was 8.3 million lbs., which increased by 50.9% compared to that ( 5.5 million lbs. ) in the same period of 2003.

  Highland Valley Copper sold 3.2 million lbs. of molybdenum in molybdenum concentrates in July -September quarter of 2004, compared with that ( 1.8 million lbs. ) in the same quarter of 2003, and the total quantity of molybdenum in molybdenum concentrates sold by them in January - September of 2004 came to 7.6 million lbs., compared to that ( 5.0 million lbs. ) in the same period of 2003.

  TEC Cominco has acquired in March of 2004 a 97.5% of the shares of Highland Valley Copper, by means of having increased their shares from 63.9% by 33.6%, and placed this copper - molybdenum producer under their management as a subsidiary. TEC Cominco has purchased a 33.6% of the shares of Highland Valley Copper from BHP Billiton.

  The financial results at Highland Valley Copper for July -September quarter of 2004 were operating profit of CAN$125 million ( corresponding to US$102 million ), compared with that ( CAN$11 million ) for the same quarter of 2003, and this considerable increase of operating profit was due to the steeply risen prices of copper and molybdenum. For a reference, the amount of molybdenum sold in the third quarter of 2004 was CAN$69 million, compared to that ( CAN$12 million ) in the same quarter of 2003.

  The reason, why the output of molybdenum in molybdenum concentrates in 2005 is forecasted to decrease to a large extent, seems to be due to an influence of the rehabilitation at Highland Valley mine scheduled to be implemented by TEC Cominco. In order to prolong the life time of this mine, TEC Cominco has planned to carry out the rehabilitation. According to this plan, the mine life will be extended by approximately 5 years to 2013. A new mining plan is being developed for a push back of the pit wall and an expansion of the Valley pit. A final decision on the extension is expected to be made in 2006, and if the decision is made not to proceed with the extension, mining is expected to be completed at the end of 2008.
last modified : Thu 04 November, 2004 [10:05]
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