U.S. REPORT New rates apply to Asarco mine

A determination of new royalty rates applicable to about half of the production of the Mission copper mine of Asarco (NYSE) has been completed by the Arizona state land department, the company reported. Under the new higher rates, the company paid an additional royalty of US$10.3 million.

The after-tax effect of the royalty payment was US$7.8 million, US$5.3 million of which was part of the previously announced provision of US$51.5 million made to 1990 fourth-quarter earnings, Asarco said.

The remainder of US$2.5 million (after tax) has been charged to operations during the past three years.

The new royalty rates are retroactive to Dec. 10, 1987, the date of a decision by the Arizona Supreme Court which was upheld by the U.S. Supreme Court in June, 1989.