Antamina Project

June 30 Rio Algom Limited, Noranda Inc. and Teck Corporation announced that Compañia Minera Antamina S. A. (CMA) had signed documentation for U. S. $1.32 bn. in project financing for the Antamina Copper - Zinc Project in Peru. The financing is the largest ever for a greenfield mining project. CMA also announced that agreement had been reached with Mitsubishi Corporation, subject to certain conditions, whereby Mitsubishi would acquire 10% of CMA. The Antamina deposit is one of the largest undeveloped copper - zinc ore bodies in the world. Mitsubishi and other Japanese smelters are now expected to purchase about 20% of the mine’s production. Total cost of developing the mine over the next three years is approximately U. S. $ 2.3 bn. CMA is to be owned 33. 75% by each of Rio Algom, Noranda and Teck with Mitsubishi having a 10% interest. Antamina is expected to begin production in 2002 and be among the largest producers of copper and zinc concentrates in the world. S. Bruce Blain and Ralph Glass at Fasken Campbell Godfrey have represented Rio Algom and CMA on the project. Counsel for Noranda has been McCarthy Tétrault with Garth Girvan (equity participation) and Robert Stephenson (banking and other financing) playing central roles. Teck has been represented by Lang Michener with the Lang team being comprised of Warren Seyffert, Q. C. , Geofrey Myers, Philippe Tardif and Robert Cranston. Tory Tory DesLauriers & Binnington has represented Mitsubishi on its equity purchase and the financing. The Tory team includes Sidney Robinson, Jonathan Weisz and Emil Pellicar.