FFE Minerals awarded contract in Chile


Minera Escondida Limitada, the world's largest copper mine, has placed a contract in the range of 26 million US dollars with FFE Minerals. The contract includes crushing and milling equipment, and associated spares to be used in Escondida's Phase IV expansion project. The contract will be handled jointly through FFE Minerals USA Inc., FFE Minerals Chile Ltda., and FFE Services-Macmin. The order is included in FFE Minerals' sales estimate for the second half of 2000 and will be taken to income in step with the deliveries of machinery, equipment and engineering until the end of 2001.

The Phase IV expansion involves construction of a new concentrator and associated support facilities. FFE Minerals' scope includes a Primary Gyratory Crusher, a Gearless SAG Mill, and three Gearless Ball Mills. The ball mills will be the largest ball mills in the world and the SAG mill will be the largest SAG mill in Chile.

The Phase IV expansion involves a 110,000 million tonnes per day (MTPD) new concentrator, increasing Escondida's total milling capacity to 237,500 MTPD. Construction is underway, with equipment delivery scheduled for fourth quarter 2001. First production from the new concentrator is scheduled for September 2002 with full production in April 2003.

Escondida is the world's largest copper mine, with production representing over 9% of the world copper market. Total production from June 1999 to June 2000 was 920,000 MT. The mine is located in the Andes Mountains, 160 km southwest of the northern Chilean town of Antofagasta. Production began at Escondida in late 1990 (35,000 MTPD), followed by expansions in 1993 (45,000 MTPD), 1994 (55,000 MTPD), 1996 (105,000 MTPD), and 1998 (127,500 MTPD).

The Australian Group, BHP operates and has a 57.5% interest in the mine. Other joint venture participants are Rio Tinto (30%), Japan Escondida (10%), and the International Finance Corporation (2.5%).

Recent contract awards including Antamina (Peru), Southern Peru Copper, Los Pelamb
res (Chile), Century Zinc (Australia), and Amplats (South Africa) have established FFE Minerals as a leading supplier of mining and mineral processing equipment worldwide.

FLS Industries A/S
Corporate Public Relations