Sterlite buys Asarco for $2.6 billion

India’s Sterlite Industries on Saturday agreed to buy the operating assets of bankrupt copper miner Asarco for $2.6 billion, the latest in the series of overseas acquisitions by Indian firms. Tuscon-based Asarco, the third largest copper maker in U.S. had total revenue of $1.9 billion in 2007, Sterlite, a unit of Vedanta Resources Plc, said in a statement.

“Asarco is a strategic fit with Sterlite’s existing copper business,” the Indian firm said in the statement.

On Friday a lawyer close to the deal had told Reuters in New York that Vedanta had signed a $2.6 billion deal to buy the assets of Asarco. Asarco, formerly known as American Smelting and Refining Co, produced 235,000 tonnes of refined copper in 2007 and its mines have an estimated reserve of 5 million tonnes of contained copper. It filed for bankruptcy protection in 2005 after it was sued for $1 billion over environmental and asbestos claim.

Sterlite, is India’s top non-ferrous metals and mining firm with interests in aluminium, copper, zinc and lead. The deal, subject to the approval of a U.S. Bankruptcy Court, will be funded through a mix of debt and existing cash, Sterlite said.

Last June, it had raised $1.75 billion in American depositary shares to pay for possible acquisitions and cut debt.

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  • Cssie

    All forms of mining are deirceatsons unto the Gaia Earth. Anyone who uses the products of mining is to be despised, except for the select few elite among us who can help guide us from the environmental abyss that we now face. Among those elite are Al Gore, Ed Abby, and Dave Foreman. I’m greatful now to find that Mark Hahn is joining those eliete that will lead us from the darkness of our proletariat ways into the enlightened communitarian community of sharing. Mr. Hahn clearly needs to use all of the dwindling resources that he may deem necessary in his quest to show us the one true WAY to environmetnal salvation. We should all be enthusiastically willing to move into yurts and arcologies in cities to save the planet. The wildlands project, not mentioned by the great Mr. Hahn, is another way that the depreadations of mankind since the pliestoscene can be reversed, allowing the return of sabertooth cats to roam from northern Mexico to the Yukon. Thank you for speaking the truth to pouer!