Primary lead producer The Doe Run Co. will soon have only one owner. Homestake Mining (NYSE) has agreed to sell its 42.5% interest in Doe Run to Fluor Corp. for US$125 million and indemnification against all liabilities. Fluor currently owns a 57.5% interest in the largest integrated primary lead producer in North America.
Doe Run, with headquarters in St. Louis, was formed in 1986 to operate the lead mining and smelting operations previously conducted by subsidiaries of Fluor and Homestake.
“The sale will resolve differences of opinion about the direction of the business,” Homestake Chairman Harry Conger said. “After long discussion, Homestake and Fluor concluded that one company or the other should control Doe Run.”
Homestake, an international gold-mining company, said the sale will result in an after-tax gain of about US$40 million and after-tax proceeds of about US$95 million.
Fluor is an international engineering, construction and technical services company with investments in coal and lead.
Fluor said Doe Run plans to expand its activities in the secondary or recycled lead market. The largest end-market for lead metal is new and replacement batteries for automobiles.
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