ZALDIVAR

Announced that the strike has ended. Mine management and the union representing mine employees have agreed to a 38-month labour contract.

Reported that unionized workers at its Zaldivar copper mine in Chile has commenced stike action. Despite negotiations between mine management and the union, including mediation by Chilean authorities, both have failed to reach an ageement on a new labour contract. The union, representing 90% of Zaldivar's workforce, is reportedly asking for a wage increase of 6-10%, against Zaldívar's final offer of 3.5% in real terms. Impacts on production of copper cathode from its SX-EW operations are still unknown. During 2004, Zaldívar focused on improving operational efficiencies and reliability of key process equipment such as the bucket wheel excavator for rehandling the spent ore and the Rahco stacker. Ore production came from Stage 3 Main Zone. Main Zone Stage 4 stripping has commenced and ore from this stage will add to production in 2005 in addition to Stage 3 ore. Pre-stripping will continue in 2005.

Vancouver-based Placer Dome plans investment this year of USD33 million at its Zaldivar copper mine in northern Chile's Region II, a company spokesperson has told BNamericas. Investment at the open-pit mine will focus on processing upgrades, ongoing mine development and new equipment, Placer Dome official Brenda Radies said. Last year Zaldivar produced 147,800 tonnes of copper, almost all in cathodes, up 6% on 140,000 tonnes in 2001. No specific expenditures were earmarked for the company's other operation in the region, its 50%-owned and operated La Coipa gold-silver mine in northern Chile's Region III, Radies said. Also, about USD2 million of the company's 2003 research and technology budget will be spent on Placer Dome's ongoing feasibility study at its Pueblo Viejo gold project in the Dominican Republic, according to BNamericas.