CHIPS ABROAD

By Staff -- Purchasing, 4/5/2001

British-Dutch metals company Corus will close three million metric tons of annual steelmaking capacity in the United Kingdom by 2003. Corus was created in 1999 through the amalgamation of British Steel and Hoogovens . U.K. steel production has been on a clear downward trend with annual production 40% below the tonnage of 20 years ago, despite a steady decline in domestic demand and a squeeze on exports because of the strength of the pound against other currencies.

Toronto-based Barrick Gold has delayed the construction of its $950 million Pascua-Lama project, which straddles the Argentina-Chile border, because of low gold and silver prices. Work will continue on the development plan for the mine, which is seen as an important test for the cross-border mining agreement concluded recently between Chile and Argentina. Pascua-Lama is one of three big projects that Barrick has said would drive its future growth. It was scheduled to make 800 000 ounces of gold in 2003, contributing to Barrick's planned target of five million oz.

British Titanium is looking for $20 million over the next three years to fund a pilot plant that will produce titanium by an electrolysis-type process that could cut the cost of making the metal by 75%. The British government's Defence Evaluation and Research Agency (Dera) has taken a 5% interest in British Titanium, as has Cambridge University, whose scientists devised the new process. A large reduction in the price of titanium could expand its use into a new range of applications, especially by automotive and aerospace. If British Titanium succeeds in raising the necessary financing, a plant could be built either in Great Britain or South Africa.

Outokumpu of Norway is spending $180 million to buy the Norzink zinc smelter and refinery and aluminum floride plant in southern Norway from Boliden of Sweden and Rio Tinto of Canada.