Tuesday, February 21, 2012
Arizona's Carlota copper mine part of sale to Polish company
Stockholders approved the sale of Quadra FNX Mining Ltd. to Polish mining company KGHM Polska Miedz SA (KGH), for $2.9 billion. Quadra owns the Carlota copper mine in Arizona as well as other properties in the U.S. and around the world. [Right, Carlota mine. Credit, KGHM]
The merged company is projected to become the owner of the world's 4th largest copper resource, behind Codelco, and Arizona-based Southern Copper and Freeport McMoRan. Based on 2010 production, KGHM would be the 8th largest in the world.
Bloomberg.com calls the deal "the biggest bid abroad designed to deepen the Polish copper producer’s global reach."
Quadra had announced plans last November to shut down the Carlota mine due to higher costs than expected, and lower ore quality. I don't see anything in KGHM's presentation that they would shut the mine down. So, the Polish buy-out might result in saving Arizona jobs and copper production.