Asarco Announces Plans to Suspend Zinc Operations in Tennessee.Business Editors PHOENIX--(BUSINESS WIRE)--Oct. 29, 2001 Asarco Inc., a subsidiary of Grupo Mexico S.A. de C.V., Monday announced plans to indefinitely suspend zinc mining and processing operations at its Tennessee Mines Division by mid-November as a result of low zinc prices, which have fallen by 30 percent over the last year. Asarco informed employees and union officials of the decision today, following an extensive review of various options for the division. The suspension of zinc production, which will be phased in during the next several weeks, will result in a reduction of approximately 360 positions at the company's three zinc operations in Jefferson County Jefferson County is the name of 25 counties and one parish in the United States. The following are named for Thomas Jefferson, third President of the United States:
Asarco will assist eligible employees in securing all available federal and state unemployment and training benefits. A small crew will remain at the facilities in care and maintenance roles and to continue processing agricultural lime Agricultural lime is a soil additive made from pulverized limestone or chalk. The primary active component is calcium carbonate. Additional chemicals vary depending on the mineral source and may include calcium oxide, magnesium oxide and magnesium carbonate. from existing zinc production byproducts. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Genaro Larrea, president of Asarco, the company carefully considered a range of scenarios for the Tennessee zinc operations. "The slowdown in the industrial manufacturing sector, and in steel in particular, has resulted in higher worldwide zinc inventories and lower prices," Larrea said. "At these prices, the Tennessee facilities simply are not economically viable." At the close of trading on Tuesday (Oct. 23), the cash price of zinc on the London Metals Exchange (LME See London Metal Exchange. LME See London Metal Exchange (LME). ) was 34 cents per pound, compared to 48 cents per pound on the same date in 2000. As recently as 1997, LME zinc prices were in the range of 70 to 75 cents per pound. In 2000, Asarco's Tennessee Mines Division produced 56,800 metric tons of zinc contained in concentrates sold to zinc refineries in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market. Zinc is used to galvanize gal·va·nize tr.v. gal·va·nized, gal·va·niz·ing, gal·va·niz·es 1. To stimulate or shock with an electric current. 2. iron to prevent it from rusting. It is also employed in alloys and batteries, and as a zinc oxide zinc oxide, chemical compound, ZnO, that is nearly insoluble in water but soluble in acids or alkalies. It occurs as white hexagonal crystals or a white powder commonly known as zinc white. to stabilize rubber and plastics. According to Larrea, Asarco employees in Tennessee have made significant progress in improving operating efficiency and reducing costs. "Unfortunately, these efforts have been masked by the deteriorating market conditions," he said. Larrea added that the company would continue to monitor the zinc market and would consider resuming Tennessee Mines Division operations should long-term market conditions improve. Asarco, which recently moved its headquarters to Phoenix from New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is a major producer of copper, zinc, gold, silver, nickel and various specialty metals. The 102-year-old company is a subsidiary of Americas Mining Corp. (AMC (Advanced Mezzanine Card) See AdvancedTCA. ), established last year as Grupo Mexico's mining division. AMC is among the world's largest integrated mining and refining companies and the third largest producer of copper. It includes Grupo Mexico's interests in Asarco Inc. (100 percent), Minera Mexico (98.8 percent) and Southern Peru Copper Corp. (54.2 percent). Minera Mexico, based in Mexico City, is the largest mining company in Mexico and among the world's lowest cost producers of copper, zinc and silver. Southern Peru Copper Corp., based in Lima, also is among the world's lowest cost copper producers. |
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