SHARES PLUNGED
after
NRI's Sterlite Industries of India bought US-based copper producer Asarco

Tucson, March 09, 2009
Pardeep Gupta

On March 07, UK NRI billionaire Anil Agarwal-led Sterlite Industries of India, entered into a new agreement to buy out the copper producer Tucson, US-based Asarco for $1.1 billion in cash and a note for $600 million, down from the original bid of $2.6 billion by Sterlite last year when 65 percent drop in the price of copper.

On Manch 09, Monday, Sterlite Industries's shares fell over 2.41% as Rs 244 when it opened at Rs 250. It was closed at Rs 244.80

Asarco domestic mines annually produce approximately 350- 400 million pounds of copper, mostly from three open-pit mines in Arizona: the Mission, Silver Bell, and Ray mines.

Sterlite Industries of India's agreement is subject to the approval of the US Bankruptcy Court for the Southern District of Texas and the deal is expected to be closed by July-August, 2009.

The operations at the El Paso smelter were suspended in February 1999. Asarco has solvent extraction-electrowinning product at its Ray and Silver Bell mines in Arizona. It operates copper smelters in Hayden, Arizona, and El Paso, Texas, which combined produce in excess of a billion pounds of anodes annually.

Most of the debts incurred by Asarco resulted from the damage to the environment and public health caused by its asbestos products. Government agencies and asbestos victims both held claims to a portion of the $5.2 billion they say Asarco owed them.

American Smelting & Refining Co., Asarco Globe

• The ASARCO, Globe Plant site is located in a mixed industrial, commercial and residential area, known as Globeville, near the South Platte River, in Denver and south Adams Counties. Smelting operations that separated impurities from gold, silver, copper and lead on the site began in 1886. The American Smelting and Refining Company, later named ASARCO, bought the plant and converted it to a lead-only production facility in 1901.
• In 1919, ASARCO changed from producing lead to producing arsenic trioxide for insecticides, medicines and glass. In 1926 the company began cadmium production for protective coating of iron and steel. At the present time, the Globe Plant produces high-purity metal alloys and specialty metals for advanced electronic applications.

UK NRI Anil Agarwal