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Cyprus Amax Minerals Company Business Information, Profile, and History

9100 East Mineral Circle
P.O. Box 3299
Englewood, Colorado 80112
U.S.A.

History of Cyprus Amax Minerals Company

Established in 1993 through the merger of Cyprus Minerals Company and Amax Inc., Cyprus Amax Minerals Company is the largest U.S.-owned mining company. Cyprus Amax is the world leader in the production of molybdenum and lithium and a leading producer of copper and coal. Cyprus also produces iron ore and gold. The company operates in 24 states and on six continents, conducting base and precious metals exploration worldwide.

Late 1960s Origins of Cyprus

The Cyprus Minerals Company first appeared in July 1985 as a spinoff of the Amoco Corporation. The company's history, however, dates back to 1969 when Amoco created Amoco Minerals Company to handle mineral rights. In 1979 that subsidiary's president, Kenneth J. Barr, acquired Cyprus Mines Corporation, which then mined copper, talc, calcium carbonate, and kaolin and explored for uranium, gold, and molybdenum. Amoco kept the Cyprus name and in the early 1980s built it into a large concern that produced coal, copper, and industrial minerals.

In 1980 Amoco created Cyprus Coal, a subsidiary that, in turn, acquired coal mines in Colorado, Pennsylvania, and Kentucky. The coal operation was immediately profitable, and Donald P. Bellum installed efficient longwalls, draglines, shovels, and haul trucks to reduce costs. At some mines, these efforts cut costs by as much as 40 percent. By 1985, coal accounted for 56 percent of Cyprus's $706 million in sales.

Cyprus Industrial Minerals handled talc, limestone, calcium carbonate, clay, and barite, which were all in production before the Amoco takeover.

Cyprus's third subsidiary was Cyprus Metals, which mined copper for construction and molybdenum for steel and lubricants. Under Amoco, Cyprus Metals expanded Cyprus Mines' Baghdad copper mine in Arizona and built the Thompson Creek molybdenum mine--which was later shut down--in Challice, Idaho. Each facility was an efficient producer, but each suffered when prices dipped in 1983 and 1984. In the last half of 1984, metals lost $70.8 million due to slackening molybdenum demand and copper prices, which had fallen from $1 to 60 cents a pound.

Cyprus experienced extensive losses in 1984 and 1985. Ironically, these losses induced cost cutting that put Cyprus in a position to grow once it became independent from Amoco, which decided to spin it off in July 1985. "As a spin-off," Chairman John C. Duncan wrote in Cyprus's 1985 report, "we emerged with low debt, well equipped and in a very strong position relative to our competitors."

Almost immediately, Cyprus bought coal mines in Utah, Colorado, and Virginia, increasing coal capacity to over 18 million tons. "The companies wanted to get out of this business," Barr told Barron's, "and we were able to help them out with a good deal for ourselves."

In succeeding years, Barr would acquire and make profitable many unwanted operations, so many that Forbes called him a "junk pitcher" and lauded him for "acquiring ... almost dead or dying U.S. mining properties for pennies on the dollar and [bringing] them back to life."

At this point, most of Cyprus's operations were producing a profit, and Cyprus reported operating revenues of $32 million in its first six months. Three businesses, however, looked unlikely to ever return their investment. Rather than carry them, the company decided to sell a barge operation, close and upgrade the Baghdad copper mine, and write down the company's entire $398 million investment in the Thompson Creek molybdenum mine. In all, 1985 write-downs totaled $675.7 million. Nevertheless, Barr told Barron's, "I see a good, steady earnings picture." The sacrifice was ultimately profitable. With lower depreciation and amortization costs and more efficient operations at Baghdad, Cyprus reported 1986 profits of $21.1 million on sales of $811 million.

Profitable in the 1980s

In 1986 Cyprus Metals recorded its first profits in more than three years, and in March Barr added to its strength by acquiring the Sierrita copper and molybdenum mine near Tucson, Arizona. Sierrita made Cyprus the third-largest copper producer in the United States and the third-largest producer of molybdenum in the world.

Cyprus Coal also finished in the black, though not quite as profitably as its officers had hoped. The coal operation had been on its way to a very good year, but the LTV Corporation filed for Chapter 11 protection in U.S. Bankruptcy Court and canceled long-term contracts with the Emerald and Knox Creek mines. This caused second-half losses, and led Cyprus to sell Knox Creek early in 1987. On the positive side, Cyprus's Plateau mine in Utah, its Empire mine in Colorado, and several recently acquired mines in Kentucky achieved higher profits.

Though Cyprus was becoming quite successful in its core businesses, Barr felt that new products, especially gold, would enhance shareholder value. "It's one of those areas that adds value in the minds of investors," he told Barron's. "A gold company carries a greater price-to-earnings multiple than a copper company."

Barr established Cyprus Gold late in 1985, and, in 1986, that subsidiary began identifying prospects. Concentrating on proper ties with the potential to produce gold at cash costs of less than $200 per ounce, the company located four gold ore bodies in Australia and one in the United States. In 1987 Cyprus's board advanced Cyprus Gold $25 million to pursue these investments through joint ventures.

Although they did begin gold production at Gidgee in Australia and Copperstone in Arizona, gold was far from the only forum Barr and Duncan used to expand Cyprus in 1987. Among other subsidiaries, Cyprus Coal acquired the Shoshone coal mine in Wyoming, while Cyprus Metals acquired the Casa Grande copper mine in Arizona, the Pinos Altos copper mine in New Mexico, and Metec, a New Jersey producer of specialty molybdenum products.

For 1987, profits reached $26.2 million, though sales fell to $795.3 million. Much of the improved profits picture came from Cyprus Metals, which, through acquisitions, had increased capacity by more than 50 percent and was benefiting from copper prices, which soared above $1.40 a pound that December. But while metals operating profits doubled, coal profits suffered from a soft market, and industrial mineral profits fell to $2.9 million, despite further reorganization.

In 1988 Cyprus's growth campaign swung into high gear. The company bought a Colorado coal mine and acquired ARCO's inactive Tonopah, Nevada molybdenum mine--which was later shut down--making Cyprus the largest molybdenum producer in the United States. The following year Cyprus acquired an 82 percent interest in Foote Mineral Company, the world's largest producer of lithium, a material used in pharmaceuticals, greases, ceramics, aluminum alloys, and high-performance batteries.

Financing for all this expansion came from soaring copper prices, and Barr did not neglect to expand this most profitable area. In 1988 Cyprus acquired the Arizona assets of the Inspiration Consolidated Copper Company and signed a long-term lease at the Twin Buttes mine, which was adjacent to Sierrita in Arizona. The Inspiration copper company was renamed Cyprus Miami. New assets included a smelter, a refinery, and a rod plant, and Cyprus, which had become the second-largest copper producer in the United States, began a process of vertical integration. The company was nearly self-sufficient in smelting, resulting in huge cost-savings.

High copper and molybdenum prices led to 1988 earnings of $170 million ($6.31 a share) on sales of $1.3 billion. There were, however, two setbacks. Cyprus Gold was hurt by start-up problems, and coal profits fell to $8.2 million due to reduced contract prices and a $6.1 million charge for closing three Kentucky mines.

In 1989 copper prices remained high, and copper production grew 28 percent to 594 million pounds. In total, copper accounted for nearly 90 percent of that year's record $250.1 million in profits. However, while the copper was bringing in substantial income, management was becoming aware of problems with costs and price fluctuations. Cyprus's copper costs were high for the industry, and costs rose even further in the final quarter of 1989 when the company unsuccessfully tried to mix ore from four different pits at Sierrita and Twin Buttes. If copper prices fell, Cyprus would find itself in trouble.

Furthermore, Cyprus's other products were barely contributing. Operating earnings from lithium and talc fell almost 50 percent to $26.7 million. Cyprus Gold lost $1.7 million because of low prices, and the coal company, which battled inefficiency and low prices, was only marginally profitable.

Cyprus officials worked to squeeze more profits from these other businesses. They exchanged shares in three small Australian mines for a larger interest in a more efficient operation in Queensland. They also consolidated some Kentucky operations and closed some costly Kentucky coal mines.

But while attention was beginning to focus on efficiency, acquisitions were by no means finished. In 1989 Cyprus entered two new businesses when Barr leased the inactive Groundhog zinc mill in Deming, New Mexico, and paid $52 million for the Reserve Mining Company's Babbit iron mine and processing plant in Silver Bay, Minnesota. Since Reserve's mine had been idle since LTV's 1986 bankruptcy, Cyprus had to spend an additional $30 million on capital improvements to bring it up to speed. By March 1993 the mine was up for sale.

In 1990 Cyprus zeroed in on costs, budgeting $200 million to increase efficiency. Copper had earned most of the company's $111 million in 1990 profits and remained very profitable. To keep it so, the company installed larger haul trucks and a power shovel at Sierrita and took steps to correct problems with metal recovery, stripping, conveyors, and ore grade at Twin Buttes. At Miami, it began a $100 million smelter expansion and modernization project, which would make the company self-sufficient in smelting and reduce overall copper production costs.

Cyprus Coal suffered from cost increases despite state-of-the-art long wall equipment at Twentymile and Emerald and good longwall equipment at Plateau and Empire. At Shoshone, failed longwall machinery led to $25 million worth of repairs, and at Kanawha lower reserves and higher reclamation costs led to $31 million in writedowns.

Most of Cyprus's other products seemed to be in a down cycle. A molybdenum glut caused $50 million in losses at the Tonopah mine, which Cyprus put on a care and maintenance basis. Lithium production shifted to a low-cost Chilean operation where the company completed a $9 million expansion. Talc suffered from the maturing product life cycle of Airways Vapor and needed to return to what the company called "acceptable levels of profitability."

In February 1991 Barr retired. Board member Calvin A. Campbell, Jr., became chairman and Chester B. Stone, Jr., who had previously been chief financial officer and senior vice-president for coal and iron ore, became president and chief executive officer.

That year a worldwide economic slowdown dragged earnings down to $42.7 million on sales of $1.9 billion. Copper prices fell one-third from their 1988 high, molybdenum prices remained depressed, and spot coal prices continued to decline. Despite lower prices, copper continued to lead the way, combining with molybdenum to report operating earnings of $132 million on revenues of $905.7 million. Coal finished $4 million in the black despite falling prices and a strike at the Empire mine in Colorado. What dragged profits down were $37.6 million in combined losses from lithium, gold, iron ore, zinc, and talc, including a $35 million pretax writedown for the sale of the company's talc business.

In early February 1992, Stone announced his retirement as president and CEO, and Campbell assumed both of those posts. Campbell was an interim choice but by no means a caretaker. "There's so much to be done at Cyprus and the things that have to be done have to be done now," he told the New York Times. Indeed, copper, coal, and other minerals were all losing money by mid-1992 and needed immediate attention.

Campbell outlined his strategy for the company in Cyprus's 1991 annual report. He planned to narrow the company's focus to copper and coal and possibly one other material. Moreover, he aimed to develop low-cost international sources of copper, increase marketing expertise, and reduce costs by a variety of means, including reducing staff. By mid-March Campbell announced plans to review the cost of goods and services and lay off 25 percent of the company's headquarters staff.

In April 1992, Cyprus named Milton H. Ward chair and chief executive. Ward almost immediately wrote down $315 million in assets and told security analysts, according to the New York Times, that he would update the company's mining equipment and narrow Cyprus from eight commodities to three or four, including copper, coal, and lithium. For the year, the company reported earnings of $92.5 million on $1.6 billion in revenue.

Merging with Amax: The 1990s and Beyond

One year after Ward took the helm, Cyprus announced a deal described as "what may be the single largest transaction in this history of mining": a merger with Amax Co., a mining company based in New York with interests in coal and gold. The combined company, to be named Cyprus Amax, would have revenues of $2.8 billion and more than 26,000 employees--though that number was expected to drop by half through streamlining--and would be capable of producing more than 70 million tons of coal a year. Ward stressed the economies that could be achieved by combining operations. The companies agreed to spin off Amax's Alumax aluminum division as a separate company; however, the 40 percent stake in Amax Gold, a small exploration company, was considered a valuable property. "Gold is an important commodity in our portfolio and one we plan to grow over the next few years," said Ward. "We want to be a major gold producer." In December 1993 Cyprus Amax signed an agreement with the Republic of Guinea on Africa's Gold Coast to explore and develop that country's gold reserves. A few weeks later, Vice-President Al Gore announced backing for Cyprus Amax's Siberian mining efforts from the Overseas Private Investment Corp., an agency formed to help U.S. firms invest in the states of the former U.S.S.R.

In January 1995, Cyprus Amax announced that as a result of surging molybdenum prices it planned to reopen the historic Climax molybdenum mine in California, which had been closed since 1987. Commentator Janet Day noted at the time that the fortunes of molybdenum--which is used in stainless steel and other alloys&mdashe closely tied to those of the steel industry, with the resulting life cycle for mines like Climax: "Boom, bust. Up, down. Open, closed." And indeed, the mine closed again just four months later in response to a drop in molybdenum prices from $15 to $5.75 a pound.

Cyprus Amax continued to pursue its aggressive schedule for cost cutting and increased production, with headcount already reduced by 2,000 since the merger. In July the company finalized financing for its 51 percent share of the El Abra copper mine in Chile; the rest was owned by Codelco, the Chilean state copper company. Ward called El Abra "the centerpiece of Cyprus Amax Minerals' copper strategy into the 21st century and the key to our production goal of more than one billion pounds of copper annually." Its investment in the mine was more than $1 billion. In 1996 a sudden drop in copper prices to their lowest prices in two years forced Cyprus Amax to withdraw a stock offering of 12 million shares and drastically affected second-quarter earnings. For the first half of the year the company reported earning $115 million on sales of $1.4 billion, down from $231 million on sales of $1.7 billion in 1995. In October tragedy struck, as a tunnel collapsed at Cyprus Amax's El Abra copper mine in Chile, killing four workers. The Chilean state mining service severely criticized the mine for having substandard safety measures, noting that there had been three other deaths at the mine earlier in the year. The mine achieved its first commercial production of copper in December.

At the end of the year Cyprus Amax's revenues and earnings were both down from 1995, with earnings of $151 million on revenues of $2.8 billion. According to Ward, increased production was "more than overshadowed by lower prices for all of our products." Ward also announced that the company would seek to reduce its stake in Amax Gold.

Cyprus Amax began 1997 on a high note, announcing an agreement to acquire 80 percent of the Kansanshi copper mine in Zambia. Shortly thereafter, however, the company was forced to spend $80 million on environmental cleanup at two of its Arizona mines. "It is not uncommon for mining companies to have environmental charges," said Jeff Middleswart, an analyst with David W. Tice & Associates, and "Cyprus is pretty decent about environmental cleanup, so I'm not overly concerned." Next Cyprus notified 611 employees of mine neer Keensburg, Illinois, that the mine might close if the company could make more money by selling its only supply contract to another producer, and first quarter earnings dropped eight percent, to $57 million. Ward continued to stress the company's very real accomplishments and huge potential, noting that the El Abra mine had begun producing ahead of schedule, the company's Refugio mine in Chile began production n 1996, the Fort Knox mine in Alaska had poured its first gold and was nearing commercial production, the Kubaka mine in Alaska would be pouring its first commercial gold in the first quarter of 1997, and the Twentymile mine near Steamboat Springs had doubled production in 1996.

Related information about Cyprus

Official nameRepublic of Cyprus, Gr Kypriaki Dimokratia, Turkish Kibris Cumhuriyeti

Local names Kypros (Greek), Kibris (Turkish) Timezone GMT +2 Area 9 251 km²/3571 sq mi population total (2002e) 802 000 Status Republic Date of independence 1960 Capital Nicosia (Lefkosia to Greek Cypriots, Lefkosa to Turkish Cypriots) Languages Greek and Turkish (official), English Ethnic groups Greek (78%), Turkish (18%), other (4%) Religions Greek Orthodox (78%), Sunni Muslim (18%), other Christian (4%) Physical features Third largest island in Mediterranean; Kyrenia Mts extend 150 km/90 mi along N coast, Mt Kyparissovouno, 1024 m/3360 ft; forest-covered Troödos Mts in SW, rising to 1951 m/6401 ft at Mt Olympus; fertile alluvial Mesaoria plain extends across island centre; SE plateau region slopes towards indented coastline, with several long, sandy beaches; major rivers include the Pedios, Karyota, Kouris. Climate Mediterranean, with hot, dry summers and warm, wet winters; average annual rainfall ranges from 300–400 mm/12–16 in on the Mesaoria Plain to 1200 mm/47 in in the Troödos Mts; mean daily temperatures in Nicosia 10°C (Jan), 28°C (Jul); temperatures range from 22°C on Troödos Mts, to 29°C on Central plain (Jul–Aug); snow on higher land in winter. Currency Greek Cyprus: 1 Cyprus Pound (CYP) = 100 cents; Turkish Cyprus: 1 Turkish Lira (TRL) = 100 kurus Economy Main exports include cement, clothing, footwear, citrus, potatoes, grapes, wine; tourism also recovering (now accounting for c.15% of national income); Famagusta (chief port prior to 1974 Turkish invasion) now under Turkish occupation, and declared closed by Cyprus government; Turkish Cypriot economy heavily dependent on agriculture. GDP (2001e) Greek $9·4 bn, per capita $15 000 Turkish $787 mi, per capita $6000 Human Development Index (2001) 0·891 History Recorded history of 4000 years; rulers included Greeks, Ptolemies, Persians, Romans, Byzantines, Arabs, Franks, Venetians, Turks (1571–1878), and British; British Crown Colony from 1925; Greek Cypriot demands for union with Greece (enosis) led to guerrilla warfare, under Grivas and Makarios, and four-year state of emergency, 1955–9; independence, 1960, with Britain retaining sovereignty over bases at Akrotiri and Dhekelia; Greek-Turkish fighting throughout 1960s, with UN peacekeeping force sent in 1964; Greek junta engineered coup d'état, 1974; Turkish invasion in 1974 led to occupation of over a third of the island; island divided into two parts by the Attila Line, cutting through Nicosia where it is called the Green Line; almost all Turks now live in N sector (37% of island); governed by a President (head of state), elected by the Greek community, and House of Representatives; Turkish members ceased to attend in 1983, when the Turkish community declared itself independent (as ‘Turkish Republic of Northern Cyprus’ or TRNC, with Raul Denktas as president, recognized only by Turkey); UN peace proposals rejected, 1984; summit meeting between Kyprianou (Greek president of Cyprus) and Denktas failed, 1985; president Georgios Vassiliou renewed talks with Denktas, 1988; peace talks abandoned, 1989; UN-sponsored peace negotiations, 1997; representatives of both sides in a new series of talks, 2002; Green Line border opened for daytime crossings, and travel ban lifted on Greek Cypriots to Turkey, 2003; Greek Cypriots reject UN plan to reunite the island, April 2004; accession of Greek Cyprus as EU member, May 2004; inter-island trade between TRNC and Greek Cyprus resumed, Aug 2004.:See also Cypress (a common misspelling) for other meanings.

Cyprus (; ), is a Eurasian island nation in the eastern part of the Mediterranean Sea south of the Anatolian peninsula (Asia Minor) or modern-day Turkey. The third largest island in the Mediterranean, it is currently divided into four main portions: the southern Republic of Cyprus (the island nation-state), the unrecognised Turkish Republic of Northern Cyprus (under Turkish control since 1974), the United Nations-controlled Green Line separating the two, and two British Base Areas. The Republic of Cyprus has been a member state of the European Union since 1 May 2004. One suggestion is that it comes from the Greek word for the cypress tree (Cupressus sempervirens), ?????????? (kypárissos) or even from the Greek name of the henna plant (Lawsonia alba), ?????? (kýpros). Another school suggests that it stems from the Eteocypriot word for copper. Dossin, for example, suggests that it has roots to the Sumerian word for copper (zubar) or even the word for bronze (kubar), due to the large deposits of copper ore found on the island. Through overseas trade, the island has already given its name to the Classical Latin word for the metal, which appears in the phrase aes Cyprium, "metal of Cyprus", later shortened to Cuprum.

History

Prehistoric and ancient Cyprus

There are only small traces of the Stone Age, but the Bronze Age was characterized by a well-developed and clearly marked civilization. The Mycenæan civilization seems to have reached Cyprus at around 1600 B.C. and several Greek and Ph?nician settlements that belong to the Iron Age can be found on the island. Cyprus came into contact with Egypt about 1500 B.C. and became an important trade partner for them.

Around 1200 B.C., the Sea people began to arrive as settlers to Cyprus, a process that lasted for more than a century. This migration is remembered in many sagas concerning how some of the Greek heroes that participated in the Trojan War came to settle in Cyprus. In those times, Cyprus supplied the Greeks with timber for their fleets.

In the 6th century B.C., Amasis of Egypt conquered Cyprus, which soon fell under the rule of the Persians when Cambyses conquered Egypt. In their new fate, the Greeks of Cyprus had as companions the Greeks of Ionia (west coast of Anatolia) with whom they forged closer ties. When the Ionian Greeks revolted against Persia (499 BC), the Cypriots, except for the city of Amathus, joined in led by Onesilos who dethroned his brother, the king of Salamis, for not wanting to fight for independence. Eventually, Alexander the Great (356-323 B.C.) took the island from the Persians. finally Rome annexed it in 58-57 BC. No doubt the most important event that occurred in Roman Cyprus was the visit by Apostles Paul and Barnabas accompanied by St Mark who came to the island at the outset of their first missionary journey in AD 45. After their arrival at Salamis they proceeded to Paphos where they converted the Roman Governor Sergius Paulus to Christianity making Cyprus the first country in the world governed by a Christian ruler.

Cyprus in ancient myth

Cyprus is the legendary birthplace of the goddess of beauty, love, sex and passion, the beautiful Aphrodite (also known as Kypris or the Cyprian). According to Hesiod's Theogony, the goddess emerged fully grown from the sea where the severed genitals of the god Uranus were cast by his son, Kronos, causing the sea to foam (Greek: Aphros).

Post-classical and modern Cyprus

Cyprus became part of the Byzantine Empire after the partitioning of the Roman Empire in AD 395, and remained so for almost 800 years, though with brief period of Arab domination and influence.

After the rule of the rebellious Byzantine Emperor Isaac Comnenus, King Richard I of England captured the island in 1191 during the Third Crusade. In his absence Cyprus would be governed by Richard Camville.

Guy of Lusignan purchased the island from Richard in 1192 compensated for the loss of his kingdom by purchasing Cyprus from the Templars. The Republic of Venice took control in 1489 after the death of the last Lusignan Queen, after which the Ottoman Empire conquered the Island in 1571.

Ottoman rule brought about two radical results in the history of the island. Finally the uprising was crushed and Khalil Agha was beheaded.

Cyprus was placed under British control on 4 June 1878 as a result of the Cyprus Convention, which granted control of the island to Britain in return for British support of the Ottoman Empire in the Russian-Turkish War.

Famagusta harbour was completed in June 1906; by this time the island was a strategic naval outpost for the British Empire, shoring up influence over the Eastern Mediterranean and Suez Canal, the crucial main route to India.

Cyprus was formally annexed by the United Kingdom in 1913 in the run-up to the First World War. Many Cypriots, now British subjects, signed up to fight in the British Army, in this and in the Second World War.

During the 1900s and 1950s, Cypriots began to demand union with Greece. In 1955 the struggle against British rule erupted with the foundation of EOKA, which lasted until 1959. The UK ceded the island under a constitution allocating government posts and public offices by ethnic quota, but retained three small Sovereign Base Areas.The constitution, that was signed by both sides was later reneiged on by the first Greek Cypriot President leader Archbishop Makarios III, his Vice President was the leading Turkish Cypriot politician Dr Faz?l Küçük.

Post-independence

During the 1960s, Makarios and Küçük pursued a non-aligned foreign policy, cultivating good relations with Britain, Greece and Turkey, and taking a leading role in developing the Non-Aligned Movement.

Tension began in 1963 when Makarios proposed thirteen amendments to the constitution of the Republic of Cyprus. By 1974 thousands of Turkish Cypriots were living in enclaves, enduring poor living conditions in exchange for security from violent attacks.

By 1974, dissatisfaction among Greek nationalist right-wing elements in favour of the long-term goal of Enosis precipitated a coup d'etat against President Makarios which was sponsored by the military government of Greece and led by the Cypriot National Guard. The new regime replaced Makarios with Nikos Giorgiades Sampson as president, and Bishop Gennadios as head of the Cypriot Orthodox Church. Seven days after these events, and after the coup d'etat had already failed, Turkey invaded Cyprus by sea and air on 20 July 1974. Talks in Geneva involving Greece, Turkey, the United Kingdom and the two Cypriot factions failed in mid-August, and Turkish forces subsequently moved from the previous cease-fire lines to gain control of 37% of the island's territory. Since 18% of the population was left in control of 37% of the territory, including some of the most fertile and productive land, the Turkish government arranged an influx of settlers from Turkey whose exact numbers are disputed, but believed to be in the range of over 100,000.

Turkish Cypriots proclaimed a separate state under Rauf Denkta? on November 15 1983. The UN Security Council, in its Resolution 541 of November 18 1983, declared the action illegal and called for withdrawal. Although it was the island as a whole which joined (theoretically including the northern areas) the Acquis communautaire applies only to those (Greek) areas under the control of the Republic of Cyprus.

Geography

Main article: Geography of Cyprus

The third largest island in the Mediterranean Sea (after Sicily and Sardinia), Cyprus is geographically situated in the eastern Mediterranean and just south of the Anatolian peninsula (or Asia Minor) of the Asian mainland; thus, it is commonly included in the Middle East (see also Western Asia and Near East). Turkey is 75 kilometres (47 miles) north; other neighbouring countries include Syria and Lebanon to the east, Israel to the southeast, Egypt to the south, and Greece to the west-north-west.

Politically and culturally, however, it is closely aligned with Europe ? Historically, Cyprus has been at the crossroads between Europe, Western Asia, and Northern Africa, with lengthy periods of mainly Greek and intermittent Anatolian, Levantine, and British influences. Thus, it is generally considered a transcontinental island.

The central plain (Mesaoria) with the Kyrenia and Pentadactylos mountains to the north and the Troodos mountain range to the south and west. There are also scattered, but significant, plains along the southern coast.

The climate is temperate and Mediterranean with hot, dry summers and cool, variably rainy winters. There is sufficient snow for a seasonal ski facility in the Troodos mountains.

The capital city, Nicosia, is located to the north-east of the centre of the island and is the only divided capital in the world. All the other major cities are situated on the coast: Paphos to the south-west, Limassol to the south, Larnaca to the south-east, Famagusta to the east, and Kyrenia to the north.

Districts

Main article: Districts of Cyprus

Cyprus is divided into six districts (Greek and Turkish equivalents in parentheses).

Famagusta (??????????/Ammochostos - Gazima?usa)
Kyrenia (????v???/Keryneia - Girne)
Larnaca (???????/Larnaka - Larnaka)
Limassol (???????/Lemesos - Limasol/Leymosun)
Nicosia (????????/Lefkosia - Lefko?a)
Paphos (?????/Pafos - Baf)

Politics

After independence Cyprus became a founding member of the Non-Aligned Movement despite all three guarantor powers (Greece, Turkey and the UK) being North Atlantic Treaty Organization members. Cyprus left the Non-Aligned Movement in 2004 to join the European Union, though it retains special observer status.

The 1960 Cypriot Constitution provided for a presidential system of government with independent executive, legislative, and judicial branches, as well as a complex system of checks and balances, including a weighted power-sharing ratio designed to protect the interests of the Turkish Cypriots. The executive, for example, was headed by a Greek Cypriot president, Archbishop Makarios III, and a Turkish Cypriot vice president, Dr Faz?l Küçük, elected by their respective communities for 5-year terms and each possessing a right of veto over certain types of legislation and executive decisions. The responsibilities of the chamber were transferred to the newfounded Ministry of Education.

By 1967, when a military junta had seized power in Greece, the political impetus for enosis had faded, partly as a result of the non-aligned foreign policy of Cypriot President Makarios. In addition to many of the Greek Cypriot refugees (a third of the population), many Turkish Cypriots (on whose pretext Turkey invaded) also moved to the UK and other countries where for the past 30 years they have lived as neighbours with the Greek Cypriots. Under the Geneva Conventions of 1949, it is a war crime to transfer, directly or indirectly, the civilian population of a country power onto land under that country's military occupation.

Subsequently, the Turkish Cypriots established their own separatist institutions with a popularly elected de facto President and a Prime Minister responsible to the National Assembly exercising joint executive powers. In 1983, the Turkish Cypriots declared an independent state called the Turkish Republic of Northern Cyprus (TRNC), an action opposed by the United Nations Security Council. In 1985, the TRNC adopted a constitution and held its first elections.

See also:

Foreign relations of Cyprus
List of political parties in Cyprus
Military of Cyprus

Political division

Cyprus gained independence from the United Kingdom in 1960, with the UK, Greece and Turkey retaining limited rights to intervene in internal affairs.

In July 1974, after an attempted coup against the Makarios goverment by extreme right-wing factions aided by the Greek junta, Turkey invaded Cyprus, despite the fact that the coup had been quashed before the arrival of Turkish paratroopers.

The Turkish Cypriot administration of the northern part of the island, together with Turkey, rejects the Republic's rule over the whole island and refers to it as the "Greek Authority of Southern Cyprus". Its territory, a result of the Turkish invasion of 1974 and whose status remains disputed, extends over the northern 43 percent of the island.

The north proclaimed its independence in 1975, and the self-styled Turkish Republic of Northern Cyprus was established in 1983. The Organization of the Islamic Conference granted it observer member status under the name of "Turkish Cypriot State".

The other power with territory on Cyprus is the United Kingdom. Under the independence agreement, the UK retained entitlement to lease two extensive areas on the southern coast of the island, around Akrotiri and Dhekelia, known collectively as the UK sovereign base areas.

Exclaves and enclaves

Cyprus has four exclaves, all in territory that belongs to the British Sovereign Base Area of Dhekelia. The first two are the villages of Ormidhia and Xylotymvou. The northern part is an enclave, like the two villages, whereas the southern part is located by the sea and therefore not an enclave ?although it has no territorial waters of its own geosite.jankrogh.com/cyprus.htm.

The UN buffer zone separating the territory controlled by the Turkish Cypriot administration from the rest of Cyprus runs up against Dhekelia and picks up again from its east side, off Ayios Nikolaos (connected to the rest of Dhekelia by a thin land corridor). In that sense, the buffer zone turns the south-east corner of the island, the Paralimni area, into a de facto, though not de jure, exclave.

Reunification, the Annan Plan and EU entry

The results of early negotiations between the Greek and Turkish politicians resulted in a broad agreement in principle to reunification as a bi-cameral, bi-zonal federation with territory allocated to the Greek and Turkish communities within a united island. and

opposed plans for demilitarisation, citing security concerns.

The continued difficulties in finding a settlement presented a potential obstacle to Cypriot entry to the European Union, for which the government had applied in 1997. UN-sponsored talks between the Greek and Turkish leaders, Glafkos Klerides and Rauf Denktash, continued intensively in 2002, but without resolution. However, weeks before the UN deadline, Klerides was defeated in presidential elections by centre candidate Tassos Papadopoulos. By mid-March, the UN declared that the talks had failed.

A United Nations plan sponsored by Secretary-General Kofi Annan was announced on 31 March 2004, based on what progress had been made during the talks in Switzerland and fleshed out by the UN, was put for the first time to civilians on both sides in separate referenda on 24 April 2004. The Greek side overwhelmingly rejected the Annan Plan, and the Turkish side voted in favour. In considering the outcome it is interesting to note that whilst the Turkish settlers (who make up the majority in the occupied north) were allowed to vote, the refugees who had fled Cyprus had no right to vote in a referendum which would ultimately determine their future (their right to return and right to their property).

In May 2004, Cyprus entered the EU, although in practice membership only applies to the southern part of the island which is in the control of the Republic of Cyprus, but this reality does not concern the personal rights of native Turkish Cypriots as EU citizens, as they are considered as citizens of the Member State Republic of Cyprus. ec.europa.eu/comm/enlargement/turkish_cypriot_en.htm

Economy

Main article: Economy of Cyprus

Economic affairs in Cyprus are dominated by the division of the country due to the Turkish occupation of the north part of the island. This growth has been buoyed by the relative stability of the Turkish Lira and by a boom in the education and construction sectors.

Eventual adoption of the euro currency is required of all new countries joining the European Union, and the Cyprus government currently intends to adopt the currency on 1 January 2008.

Demographics

Main article: Demographics of Cyprus

Greek and Turkish Cypriots share many customs but maintain separate ethnic identities based on religion, language, and close ties with their respective motherlands. Greeks comprise 78% of the island's population, Turks 18%, while the remaining 4% are of other ethnicity.

The major part of Greek Cypriots, and thus the majority of entire Cyprus, belong to the Autocephalous Orthodox Church of Cyprus (Cypriot Orthodox Church), whereas most Turkish Cypriots are very open minded Sunni Muslims. Church attendance is relatively high and Cyprus is known, along with Malta and Greece, as one of the most religious countries in the European Union. In addition, there are also small Roman Catholic, Maronite and Armenian Apostolic communities in Cyprus.

Greek is the predominant language in the south, Turkish is spoken in the north and by some Greek Cypriots, too. Historically, the Greek language was largely spoken by all Greek Cypriots and by many Turkish Cypriots too, given the fact that the Greek Cypriots formed the majority of the population. The government is trying to eliminate this problem but this seems impossible at its current state

The majority of Cypriots receive their higher education at Greek, British, Turkish, other European and US universities, while there are also sizeable emigrant communities in the United Kingdom and Australia. Thus following 1974 the Cypriot system follows the Greek system in the south, in other words providing their students with an apolytirion, and the Turkish system in the north. A large number of students after sitting for A-levels and/or SATs study abroad, mainly in English speaking countries such as the United Kingdom or the United States, but also in other European destinations such as France and Germany. Traditionally the communist party AKEL provided scholarships for its members to study in Eastern Europe. Eastern European countries, especially Bulgaria and Hungary, are still popular destinations for students.

In the north there are several universities, which are attended by students from Northern Cyprus, Turkey and other countries of the Middle East. The largest of these universities is the Eastern Mediterranean University www.emu.edu.tr.

Educational institutions

University of Cyprus
Cyprus College (taught in English) situated in Nicosia
Intercollege (taught in English) situated in Nicosia, Limassol and Larnaca
Higher Technological Institute (taught in English and Greek) situated in Nicosia
Frederick Intitute of Technology (taught in English + Greek) situated in Nicosia and Limassol

Current events

Due to conflict in Lebanon (See: 2006 Israel-Lebanon conflict), many thousands of refugees are being evacuated from the area into southern Cyprus. Governments including the U.K., U.S, France and Germany are launching independent operations to evacuate their citizens from the area. Canada has leased 7 ships from Cyprus in order to facilitate the evacuation of Canadians living or vacationing in Lebanon. Ranked 8th in the world as of 18th September 2006.

Yusuf Islam (previously Cat Stevens) internationally successful singer
Sir Stelios Haji-Ioannou (b. 1967), self-styled "serial entrepreneur", owner of easyGroup
Peter Andre (b.1973) Famous Worldwide Singer
Anthony Costa member of boy band, Blue.
Zeno of Citium (b. 333 BC) Hellenistic philosopher, founder of Stoicism, possibly Phoenician
Marios M. Polycarpou Computer Scientist www.ececs.uc.edu/~mpolycar/
Michael Cacoyiannis (b. 1957), famous singer in Greece, Cyprus , Europe and in U.S.A
Giannos Kranidiotis (died 1999 in airplane accident), Greek politician, deputy Minister of State
Michalis Konstantinou football player for Olympiakos CFP and all-time leading goalscorer for Cyprus national football team
Kyriacos Costa Nicolaou (b.1946) Famous Organic Chemist

Miscellaneous

Communications in Cyprus
Holidays in Cyprus
List of Cypriots
Military of Cyprus
Music of Cyprus
Alexander the Great
Transportation in Cyprus
Cyprus Scouts Association
List of football clubs in Cyprus
Annan Plan for Cyprus
Cyprus Refugees

Additional topics

Company HistoryCoal & Mineral Mining

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