Asarco tables copper cuts

Vancouver — Joining the ranks of other major producers, Phoenix-based Asarco, a subsidiary of Grupo Mexico S.A. de C.V., plans on cutting copper output by an additional 23% at its Mission mining complex in southern Arizona.

Slated to take effect Jan 1, 2002, the reduction marks the second curtailment at the Mission complex in four months. Since Nov., production at Mission has been reduced by 61%. The latest cut back is expected to cost 90 people their jobs.

In the face of over supply and lower demand, the company has also lowered production of refined copper at the Amarillo refinery in Texas by 95,000 tonnes per year or 29%. Some 41 jobs are expected to be lost.

This year, Asarco has trimmed overall refined copper production by 151,000 tonnes.

“Although the price of copper has rebounded slightly in the last few weeks, the average price for the year is still down,” says Asarco’s president, Genaro Larrea. “We will continue to review our operations and be prepared to reduce production further if it is appropriate.’

The world’s major copper producers have drastically cut output in a bid to counter weak demand and prop up prices, which recently fell to their lowest levels since 1987.

Along with the Asarco cuts, Noranda (NRD-T) says will close Gaspe copper smelter in Canada for six months starting in 2002 and reduce annual copper cathode output at CCR refinery in Quebec by 45,000 tonnes. Rio Tinto (RTP-N) subsidiary Kennecott Utah Copper joined the parade by permanently closing the North Concentrator plant near Magna, Utah.

Earlier in November, Anglo American (AAUK-Q) said it had cut 2001 output forecast at its Konkola operations in Zambia to 200,000 tonnes from 240,000. Major Chinese copper producers agreed to cut copper output in 2002 by 100,000 tonnes and London-based Antofagasta said it would slice of 40,000 tonnes from its 330,000 tonnes of concentrates expected from the Los Pelambres copper mine in Chile. BHP Billiton (BHP-N) cut 80,000 tonnes per year at their 57.5%-owned Escondida mine in Chile and 90,000 at Tintaya mine in Peru.

The world’s second largest copper producer, Phelps Dodge (PD-N) started the cutback parade in March by announcing it would curtail output by 80,000 tonnes per year. Codelco, the world’s largest producer has yet to announce any significant cutbacks.