Asarco Reports Lower Earnings

Mining and refining company Asarco Inc. reported lower second-quarter earnings this fiscal year compared with last year’s same quarter.

The New York copper, lead and silver mining company, said Thursday its net earnings for the second quarter were $51.9 million, compared with $72.4 million during the second quarter of 1996.

The company said the drop was because of lower ore grades at its North American copper mines and a slowdown of production at its Ray mine in Arizona. It also has investments in Mexico, Peru and Australia.

Copper prices also dropped since last year. The company sells 60 percent of its copper based on the London Metal Exchange prices, which were down 9 cents from the previous years’ second quarter.

Asarco sold a portion of its stake in the Mexican company Grupo Mexico in June. The gross proceeds of the sale were $126.2 million. Later that month Asarco used part of the proceeds to repurchase its own shares. Asarco still holds shares in the Mexican company worth $290 million.

The company, which formed Silver Valley Resources Corp. in 1995 as a joint venture with Coeur d’Alene Mines Corp., owns the Galena and Coeur Mines in the Silver Valley.

, DataTimes