Daniel Meilan, Under Secretary of Mining, Av Julio A. Roca, 651, piso 2, of. 233, (1322) Capital Federal, Buenos Aires, Argentina, Tel: (54-1) 349 3271/74

C -- ARGENTINE COPPER SMELTER/REFINERY PROJECT POC Carol Stillwell, USTDA, Room 309, SA-16, Washington, D.C. 20523-1602, Tel: (703) 875-4357, Fax No.: (703) 875-4009 The Undersecretariat of Mining ("Grantee") invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms which are qualified on the basis of experience and capability to develop a feasibility study for the construction of a smelter and refinery in Argentina to treat copper sulfide concentrates to produce copper metal. The smelter will be based upon oxygen lance technology and the refinery will be conventional electrolytic processing. PROJECT BACKGROUND The Argentine Government has made the development of its mining industry a national priority, and assisted by its efforts, the Bajo de la Alumbrera Mine is commencing operations in 1997. The Agua Rica Mine is being drilled and feasibility studies are underway. Both are large copper sulfide and gold deposits. To utilize portions of the copper concentrate from these mines and other potential operations, the Grantee desires that the viability of a smelter and refinery to produce copper metal be studied. The production would serve to partly alleviate the necessity of importing copper into Argentina. Conventional smelters are capital intensive and are justifiable only with very large production rates. For the size that would be required for this project, it would be difficult to finance such a plant. The feasibility study would examine the Ausmelt and oxygen lance technologies, both of which are proven processes. Commercial smelters of this type are much lower in capital cost. The feasibility study will examine the technical, economic, and financial aspects of building a smelter and refinery for the treatment of copper sulfide and gold bearing concentrates produced in Argentina. The major components of the study will be: 1. A marketing study for the sale of blister and/or refined copper. 2. Availability of raw materials, including copper concentrates and fluxes. 3. Cost and availability of energy. 4. A detailed study of the applicable smelter technology and refinery practice. 5. Determination of theplant location, taking into account transportation, availability of energy, infrastructure, and proximity to major raw materials. 6. Environmental impact and permitting. 7. Organization, staffing, and training. 8. Costs, both capital and operating. 9. Economics. 10. Financing. 11. Schedule. The U.S. firm selected will be paid in U.S. dollars from a $484,700 grant to the Grantee from the U.S. Trade and Development Agency (TDA). A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission/desk study report are available from TDA, at Room 309, SA-16, Washington, D.C. 20523-1602. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please included your firm's name, contact person, address and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 pm will be mailed the following day. Please check with your courier and/or mail room before calling TDA. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the duration of the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal in English and Spanish directly to the Grantee in Argentina by May 30, 1997. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals. (0104)

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