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JUSTICE DEPT.: CYPRUS/AMAX MINERAL COMPANIES DIVEST TO RESOLVE ANTITRUST CONCERNS

 WASHINGTON, Nov. 8 /PRNewswire/ -- The U.S. Department of Justice's Antitrust Division approved today divestitures by Cyprus Minerals Company (NYSE: CYM) of Englewood, Colo., and Amax Inc. (NYSE: AMX) of New York that resolve antitrust concerns relating to Cyprus' proposed acquisition of all the voting securities of Amax.
 The department had previously indicated to the parties that the transaction between the two companies posed serious antitrust concerns in molybdenite mining and processing. Molybdenite is a metal that is used mainly to prepare strong, heat-resistant alloys suitable for certain specialty applications, primarily in the aerospace and defense industries.
 The companies have agreed to sell to Tonopah Mineral Resources Limited Liability Corporation Cyprus' Thompson Creek primary molybdenite mine, near Challis, Idaho, maintained on standby status since December 1992, and Amax's Langeloth, Pa., roasting facility, currently used to produce other products. Tonopah is a recently formed mining and metals company.
 Anne K. Bingaman, assistant attorney general in charge of the Antitrust Division, said: "This divestiture preserves competition in molybdenite mining and roasting and provides for previously unavailable capacity for U.S. companies to secure toll-roasting of molybdenite thus enhancing the ability to compete in the production of molybdenum-based products. Consumers will benefit from this increased competition because additional production capacity in both mining and processing will be brought into the market."
 Molybdenite, which is a mineral mined either as a primary product or as a byproduct at copper mines, is typically concentrated at mine-sited mills and then roasted to produce molybdic oxide, which may be used directly as a basic ingredient in stainless steel and other specialty steel applications or further processed to produce other products.
 Cyprus currently has no operating primary mines but mines molybdenite as a byproduct at its Sierrita and Bagdad copper mining operations both near Tucson, Ariz., and operates a molybdenite concentrate roaster at its Sierrita mill. Amax currently operates its Henderson, Colo., primary molybdenite mine and a roasting facility at Fort Madison, Iowa.
 -0- 11/8/93
 /CONTACT: U.S. Department of Justice, 202-616-2771/


CO: U.S. Department of Justice; Cyprus Minerals Company; Amax Inc. ST: District of Columbia IN: MNG SU: EXE

DC-KD -- DC040 -- 1963 11/08/93 18:15 EST
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Publication:PR Newswire
Date:Nov 8, 1993
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