MIM expands with Asarco

Press, 8 July 1976, Page 17

MIM expands with Asarco

NZPA Brisbane MI3I Holdings. Ltd. has made an agreement with Asarco Incorporated of the United States, involving participation by MLM in the capital of Asarco, and arrangements for direct joint investment in a prospective major minerals industry development in the United States. A major advantage for MIM, stemming from the arrangement is MlM’s agreement in principle to participate equally with Asarco in a new zinc refinery project in the United States if and when that project proceeds. The United States is the world’s major market for zinc. “The MIM directors regard this move as of major significance in MlM’s longstanding, and successful association with Asarco. It

is consistent with the company’s policy of broadening its spheres of interest, not only on a commodity basis but also on a geographical ibasis,” the chairman of MIM (Sir James Foots) said. The arrangements are subject to the approval of various regulatory authorities, and to approv; 1 or ratification by Asarco shareholders. They are also subject to consents of ler. iers, and negotiation of definitive agreements. Asarco products include copper, silver, lead, zinc, gold, coal, asbestos, molybdenum, and titanium minlerals, and a wide range of processed and recycled Imetals and alloys. I Asarco was instrumental in providing the financial and technical support to ensure the continued viability of Mount Isa Mines, Ltd, during the Depression of the 19305. Asarco holds 49 per cent of the share capital of MIM, having reduced this holding from 53.9 per cent in recent years. Other foreign resi-

dents hold 6 per cent, and Australian residents 45 per cent. Asarco intends to assist MIM in achieving majority Australian shareholding within the next five years. MIM will invest about sAust7om in the capital of Asarco by subscribing for 3.5 million new' shares to be issued by Asarco, and in addition MIM intends to buy 500,000 Asarco shares on the open market over the next 18 months, bringing MlM’s interest to 13.7 per cent of Asarco’s issued capital. MIM

will be the largest single shareholder of Asarco. The chairman of MJM .will be invited to join the Asarco board of directors. Asarco is a major world mining and minerals processing company. Its business is mainly in the United States, Canada, and Peru. Besides its shareholding in MIM, Asarco has substantial interests in other major mining companies in Peru and Mexico and is a producer of primary aluminium, and fabricator of non-ferrous metals in the United States.