Asarco Cuts Copper Production

Asarco Inc.'s Amarillo, Tex., copper refinery will trim 41 jobs next year because of a slow copper market, the company announced Friday.

The company, a subsidiary of Grupo Mexico S.A. de C.V., also is curtailing copper ore production at its Mission mining complex in Arizona by 23 percent starting in January because of low copper prices.

Larry Castor, general manager of the refinery, said the job reductions at the refinery were caused when a supplier, Chemetco, closed a smelter in Illinois where it processed scrap copper and sold it to Asarco for processing at the Amarillo refinery.

Chemetco provided 95,000 metric tons of copper anode a year, Castor said.

"We're distraught this is going to happen," Castor said. "We've tried to keep our employees."

Most of the 41 positions will begin phasing out in late January and early February, he said.

The positions will be subject to recall, but that will be unlikely during 2002, Castor said.

Combining the cutbacks at the Mission mine with the loss of supply from Chemetco means Asarco has reduced its refined copper production by 151,000 metric tons a year.

"Although the price of copper has rebounded slightly in the last few weeks, the average price for the year is still down," said Genaro Larrea, Asarco president, in the announcement of the cuts. "These steps will provide us with the flexibility to adjust to the challenging copper market conditions. We will continue to review our operations and be prepared to reduce production further if it is appropriate."

The Amarillo refinery employs 529 and is capable of processing 480,000 metric tons of copper a year.