Asarco to Reduce Mission Unit Copper Production to 15 Percent of Total Capacity.

Business Editors

PHOENIX--(BUSINESS WIRE)--Dec. 20, 2002

Asarco, Inc., a subsidiary of Grupo Mexico S.A. de C.V., today announced that it has decided to significantly reduce copper production at its Mission mining complex in southern Arizona.

As a result of the reduction, the Mission complex will operate at 15 percent of its established capacity.

The decision to curtail operations will reduce annual production of contained copper at Mission to approximately 22,000 metric tons, roughly 15 percent of its peak production levels reached less than four years ago. The reduction also will impact Asarco's downstream operations at the Hayden, Ariz., copper smelter, reducing production by approximately 33 percent, and at the Amarillo, Texas, refinery by approximately 13 percent. Employment at the affected operations will be reduced according to the adjusted production levels.

The decision follows an extensive review of various production scenarios. The company announced in October that it was exploring the possibility of closing the Mission operations by the end of the year. Asarco will continue to review the situation at Mission and other operations.