In an effort to acquire more low-cost copper production and expand its ore reserves, Asarco (NYSE) has bought an additional 10.7% interest in Southern Peru Copper from Newmont Gold (NYSE).
The purchase price was US$116.4 million.
Southern Peru (SPCC) operates two large, open-pit copper mines, a smelter and refinery, all of which are in the South American country. In 1994, the company produced more than 267,000 tons of copper and recorded sales of more than US$700 million.
Reserves stand at 588 million tons of sulphide ore averaging 0.79% copper and 0.04% molybdenum, as well as leachable reserves of 570 million tons averaging 0.2% copper. The company is carrying out delineation drilling on ground which contains an estimated 1.3 billion tons averaging 0.7% copper, and which is adjacent to its mining operations.
In addition, SPCC is carrying out a US$445-million modification program. This involves construction of a solvent extraction-electrowinning operation capable of producing 40,000 tons of copper annually.
With the 10.7% purchase, Asarco’s interest in SPCC has risen to 63%.
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