Grupo Mexico official says Asarco strike settlement possible
Officials from Mexican copper mining concern Grupo Mexico SA were meeting with union representatives Friday to try to resolve a three-week-old U.S. strike at the company’s Asarco unit, an official said Friday.
In a conference call with analysts to discuss Grupo Mexico’s second-quarter results, chief financial officer Eduardo Gonzalez said he believed a solution to the strike was possible.
Friday’s meeting was the first between management and the union since more than 1,500 workers went on strike in Arizona and Texas to protest the company’s proposed wage freeze and reductions in health and pension benefits.
“Discussions are under way, and we expect that will have a positive result,” Gonzalez said.
He declined to estimate when the strike may be settled. When asked whether Grupo Mexico plans to sell Asarco, he said Asarco management “is studying various possibilities.”
More: signonsandiego.com
Asarco, the copper mining unit of Grupo Mexico (GMBXF.NOO), Wednesday filed for bankruptcy protection after a five week strike that hampered production. The company also faces environmental and other claims worth $1.9 billion.
Asarco filed for Chapter 11 protection in the US Bankruptcy Court in Corpus Christi, Texas, although its operations are headquartered in Tucson. Asarco is facing a large number of asbestos related personal injury claims besides several environmental lawsuits related to its mining, smelting and refining operations. The company expects the Chapter 11 filing to enable it to reorganize its liabilities, reduce operational costs and restructure its balance sheet.
Six years after buying U.S. copper giant Asarco and its prized Peruvian assets, Grupo Mexico might opt to sever links with its U.S. unit and end fights with its feisty union.
With all 1,500 unionized workers at Asarco on strike alleging "bad faith" contract negotiations by the company and both sides not even in talks, analysts say Grupo Mexico could turn its back on its troubled U.S. operations.
The Mexicans have openly said they are considering asset sales at Asarco, which Grupo Mexico bought for more than $2 billion in 1999, an acquisition that almost sank the company when copper prices then
Copper Reaches a Record as Grupo Mexico Fails to End Strike
Copper reached a record high in London as Asarco LLC, responsible for about 1 percent of world copper supply, failed to end a strike at mines, refineries and smelters in Arizona and Texas now entering its seventh week.
Asarco, the U.S. copper-mining unit of Grupo Mexico SA, and the United Steelworkers of America made no progress on ending the strike at mines in Arizona and a Texas smelter and no new talks are scheduled, said Pete Cinquemani, commissioner of the Federal Mediation & Conciliation Service, on Aug. 13.
Copper for
BASE METALS UPDATE: Grupo Mexico: Cananea Talks Going Well
Workers at La Cananea, a copper mine located in northern Sonora state, said Tuesday that talks were advancing well with parent company Grupo Mexico SA (GMEXICO.MX) over annual contract revisions.
Union Committee Plans To Discuss Asarco Offer Wednesday
The union bargaining committee representing workers striking against Asarco Inc. (ASX.XX) is planning to meet Wednesday to discuss a one-year contract offer that has been made by the company, as well as other issues, a union official reported Tuesday morning.
Mexico Steel Talks End Without Deal, No Strikes Seen Tue
Grupo Mexico, Acindar, CPFL, Grendene: Latin Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Grupo Mexico SA (GMEXICOB MM): Asarco LLC, the U.S. mining unit of Grupo Mexico SA, said it will hire hourly employees to replace union workers after talks failed to end a 10-week strike at copper mines and plants in Arizona and Texas. Grupo Mexico shares fell 34 centavos, or 1.8 percent, to 19.01 pesos.
Vitro SA (VITROA MM): Rising international natural gas prices
Grupo Mexico Urges Authorities to End 24-Day Copper Mine Strike
Grupo Mexico SA, the worlds seventh-largest copper producer, said it is urging authorities to arrest union members blocking work at a copper mine and concentrator in Mexico after a 24-day strike threatens to leave the company short for May copper deliveries.
Mexico City-based Grupo Mexico is losing daily production of about 1,100 metric tons of copper content in concentrate from what the company calls illegal work stoppages, said Juan Rebolledo, Grupo Mexicos spokesman, in a telephone interview. The company said last week it notified customers it may not make May
Grupo Mexico Shuts San Martin Mine as Strike Lingers
Grupo Mexico closed its San Martin zinc mine because of a strike that has halted production since March, signaling labor disputes that have crimped world metal supplies wont end soon.
Its impossible to even hope that this is going to be resolved, spokesman Juan Rebolledo said in a television interview on TV Azteca. Thats why we closed it.
Lost production from San Martin and Grupo Mexicos La Caridad mine helped push copper to record prices on the London Metal Exchange this year, as some analysts forecast 2006 production will lag behind
Mexico OKs Request to Close Copper Mine
Mexican labor authorities approved Grupo Mexico SAs request to close the La Caridad copper mine and cancel the collective contract after a three-month strike, a company official said Friday.
Juan Rebolledo, vice president for international affairs for Grupo Mexico, said the labor arbitration board approved the closure of the mine in northwestern Sonora state, and that the company can now cancel the contract which involves at least 1,200 unionized workers.
About 700 nonunion staff and 800 contract workers also will be affected, although the company can later reopen the mine with other workers once the
VW Mexico workers may strike Thursday for 12.5 pct pay hike
Volkswagen AG workers at its Puebla plant in Mexico may go on strike on Thursday to support demands for a 12.5 pct pay hike, Financial Times Deutschland reported, citing a trade union spokesman.
The spokesman said while VW has not made an offer yet it has rejected a 'spectacular salary adjustment'.
Workers at the plant last staged a three-day strike one year ago and pushed through a 4.5 pct wake increase.
The Puebla plant makes the New Beetle and Jetta and employs 12,000 workers.
More: forbes.com
Copper May Rise in London on Inventory Drop, Mexico Mine Strike
Copper may rise to a record in London on speculation that supply will lag behind demand after inventory declined and a strike at Mexico's largest producer continued for a fourth day.
Stockpiles stored in London Metal Exchange-monitored warehouses fell 2.4 percent to 120,925 metric tons, the LME said today in a daily report. That's less than three days global consumption. Workers at Grupo Mexico SA's La Caridad mine in northern Mexico continued a protest, demanding better safety conditions. Reduced supply may lift prices by as much as $200 a
