Asarco Purchases 10.7% Interest in SPCC.NEW YORK--(BUSINESS WIRE)--April 5, 1995--ASARCO Incorporated (NYSE NYSE See: New York Stock Exchange :AR) today announced the purchase of the 10.7% interest in Southern Peru Copper Corporation (SPCC SPCC abbr. Society for the Prevention of Cruelty to Children SPCC (US) n abbr (= Society for the Prevention of Cruelty to Children) → Kinderschutzbund m ) held by Newmont Gold Company. The purchase increases Asarco s interest in SPCC to 63% from 52.3%. Total purchase cost was $116.4 million. As a result of the purchase, Asarco will fully consolidate the results of SPCC in its financial statements. Asarco had previously accounted for its investment in SPCC by the equity method. Commenting on the purchase, Richard de J. Osborne, Chairman of Asarco, said "SPCC is one of the world's leading producers of copper. By increasing its interest in SPCC, Asarco is acquiring additional low cost copper production and ore reserves." SPCC operates two large open pit copper mines, a smelter and refinery all located in the southern part of Peru and produced 267,800 tons of copper from its own mines in 1994. SPCC reported sales of $701.7 million in 1994. SPCC is currently completing a $445 million modernization and expansion program which includes an SX-EW operation which will produce 40,000 tons of copper annually, the acquisition of the Ilo refinery completed in May 1994 and expenditures to upgrade operating and environmental facilities. Additionally, SPCC has underway a drilling program to further delineate 1.3 billion tons of mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. material grading an average of .7% copper adjacent to its two mines. Current ore reserves total 588 million tons of sulfide reserves with an average grade of .79% copper and .04% molybdenum molybdenum (məlĭb`dənəm) [Gr.,=leadlike], metallic chemical element; symbol Mo; at. no. 42; at. wt. 95.94; m.p. about 2,617°C;; b.p. about 4,612°C;; sp. gr. 10.22 at 20°C;; valence +2, +3, +4, +5, or +6. and leachable reserves of 570 million tons with an average grade of .2% copper. ASARCO Incorporated, headquartered in 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 one of the world's leading integrated producers of nonferrous metals, principally copper, lead, zinc and silver. Asarco also produces specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. , minerals and other industrial products and provides environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, . Asarco had 1994 sales of $2.0 billion. CONTACT: ASARCO Incorporated Jerry Cooper, 212/510-1810 |
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