MAGMA COPPER ESTABLISHES NEW SUBSIDIARY TO INTEGRATE SMELTING, REFINING AND MARKETING
MAGMA COPPER ESTABLISHES NEW SUBSIDIARY
TO INTEGRATE SMELTING, REFINING AND MARKETING
TUCSON, Ariz., Nov. 12 /PRNewswire/ -- Effective Jan. 1, 1992, Magma Copper Company (AMEX: MCU) will establish a new, 100 percent- owned subsidiary, Magma Metals Company, thus merging the company's smelting/refining and marketing/sales divisions.
The activities of Magma Metals Company will encompass the smelting and refining of all of the parent company's copper production, the acquisition of additional feedstock for the smelter, the manufacture of copper rod and the sale of all products.
Burgess Winter, president and chief executive officer of Magma Copper Company said, "The formation of Magma Metals Company is an important step towards the creation of a major international enterprise aimed at maximizing the profits of Magma's smelting, refining and commercial activities."
John F. Champagne, currently Magma Copper Company's vice president of Marketing & Sales, has been appointed president of the new subsidiary. Prior to joining Magma in 1988, Champagne was president of Cargill Metals.
Tom Jordan, presently general manager of Magma Copper Company's Smelting and Refining Division, will be vice president and general manager of operations for Magma Metals Company.
According to Champagne, "Tom Jordan's experienced and successful management group operating the smelting and refining facilities has developed competitive advantages by increasing production, lowering costs and achieving enviable safety and environmental performance. The employee involvement process, labor/management cooperation and Magma's new, long-term labor agreement provide a basis for additional productivity improvements."
Brian Disbury, currently Magma Copper Company's manager of Copper Sales and Raw Materials, will be vice president, Marketing & Sales for Magma Metals Company.
Magma has become increasingly involved in international business and has become a major U.S. exporter of refined copper to the Far East. It is well positioned to profit from the worldwide shortage of smelting capacity which is expected to persist for several years. The new organizational structure will speed up its reaction time to these market opportunities.
The San Manuel smelter and refinery facilities were modernized in 1988 and incorporate the world's largest Outokumpu flash furnace. Currently, Magma produces 350,000 tons of electrolytic copper per annum including 62,000 tons from SX-EW.
The establishment of Magma Metals Company is an important part of Magma's plan to expand and strengthen its position as a major copper producer. Magma recently acquired 100 percent ownership in the Robinson Mining District, near Ely, Nev., and is evaluating the expansion of its smelter and development of the underground "K-orebody" at its San Manuel, Ariz. mine to extend mining operations there by more than a decade.
Magma Copper Company, one of the largest primary copper producers in the United States, sells high-quality copper cathode and rod to customers worldwide. Magma has operations in San Manuel, Miami, Superior and Humbolt, Ariz. and Ely. Corporate headquarters are in Tucson.
/CONTACT: Richard P. Johnson of Magma Copper Company, 602-575-5670/
(MCU) CO: Magma Copper Company ST: Arizona IN: MNG SU: SE-EH -- SD001 -- 3274 11/12/91 08:03 EST