Asarco : Plant expansions and modernizations continue amidst company restructuring

Until about three years ago, Asarco's copper business consisted predomi¬nantly of custom smelting of ores and concentrates produced by other mining companies. Since then, the company has been transforming itself into a fully integrated producer in copper mining, smelting, and refining. In doing this, Asarco has lowered its costs and restructured its operations and finances. Now, Asarco hopes to complete this process by spending $260 million over the next three years, to expand and modernize its copper facilities and boost production by some 40%. The capital spending program includes: • $130 million at the Ray mine about 113 km (70 miles) north of Tucson, AZ, to expand mining capacity and install an in-pit ore crusher, mill, and concentrator; • $100 million, to expand the mining capacity at the Mission Complex located south of Tucson, AZ, and refurbish the adjacent, idle Pima mill and concentrator. (Asarco had earlier exercised an option to purchase the Pima mill for about $6 million); and • $30 million, to modernize the copper smelter in El Paso, TX, with a new flash smelting process. The new program is in addition to a recently completed first-phase expansion of the Mission mine, mill, and concentrator. This $13 million debottlenecking of existing operations in¬creased production capacity by 46% or 24.5 kt/a (27,000 stpy), to 79 kt/a (87,000 stpy) of copper in concentrates. In addition, a previously an¬nounced $12 million expansion program at the Ray mine is scheduled for completion in early 1990. It will expand mill capacity, to offset the anticipated effects of increasing ore hardness as the pit deepens. Ray produces 68 kt/a (75,000 stpy) of copper in concen¬trates and an additional 36 kt/a (40,000 stpy) of electrowon copper. By 1992, when Asarco's expanded and modernized copper facilities are operating at capacity, the company's mine output will have increased by 67 kt/a (74,000 stpy), to 263 kt/a (290,000 stpy) of contained copper. That will be enough to provide all of the feed required for Asarco's two copper smelters - by then, both of them modern, state-of-the-art facilities. Asarco's expansion and modernization program will further reduce costs and provide added assurance that the company's copper business will be profitable at the bottom of the cycle, according to Chairman Richard de J. Osborne The Ray mine portion of the new program will include construction at the mine of a new mill and concentrator, with a capacity of 18 kt/d (20,000 stpd) of ore. These new semiautogenous grinding mills and large capacity flotation cells will augment the present 27.2 kt/d (30,000 stpd) concentrator located 29 km (18 miles) away, in Hayden, AZ. A 29 km (18 mile) pipeline will be built to carry tailings in slurry form from the new Ray mill to the present tailings pond. Concentrates from the new facility will be shipped by rail to Asarco's Hayden copper smelter. Ray's present 27.2 kt/d (30,000 stpd) crusher, adjacent to the open-pit, will be replaced by a 54.4 kt/d (60,000 stpd), portable in-pit crusher and conveying system. This will reduce the more expensive ore haulage by truck. The Ray project is scheduled for completion by 1992. It will increase the mine's annual output of copper in concentrates by an additional 33.5 kt/a (37,000 st), to 102 kt (112,000 st). And the project could mean an additional 400 jobs at the 730 employee Ray operation. Work at the Mission Complex involves reactivation of the Pima mill and concentrator and expansion of mine output sufficient to provide ore to both the Pima mill and the present Mission mill. In 1985, Asarco purchased the Pima mine, which occupies one end of the Mission pit. The work at Mission will increase its annual capacity by 33.5 kt (37,000 st), to 112 kt/a (124,000 st) of contained