ANACONDA REPORTS W. AUSTRALIAN OPERATIONS REACH 70 PCT CAPACITY.

SYDNEY, May 1 Asia Pulse - Production from Anaconda Nickel Ltd's (ASX:ANL) its Murrin Murrin operation in Western Australia reached 70 per cent of design capacity in the March quarter, the company said today.

Anaconda said production for the March quarter was 5,714 tonnes of nickel and 361 tonnes of cobalt at Murrin Murrin.

"Production recorded in March alone was 2,659 tonnes Nickel and 163 tonnes Cobalt, and production for the month of April is expected to consolidate this improvement, demonstrating the integrity of the Company's ramp up schedule," Anaconda said in its report.

The company also said its C1 unit cash operating costs fell to US$1.32/lb nickel during the quarter with a 34 per cent rise in production.

"Overall nickel recovery for the March quarter was 83 per cent, a significant improvement on the 74 per cent nickel recovery achieved in the December quarter," Anaconda said.

"In March, an overall nickel recovery of 86 per cent was achieved."

Anaconda said at March 31, 2001 cash and available facilities on hand was $A68 million ...