The Australian subsidiary of Asarco (NYSE) has acquired full ownership of the Wiluna gold mine in Western Australia. Asarco Australia, 60% owned by its New York-based parent, bought the 50% interest in the mine belonging to Barrack Mines for US$15.8 million.
The Wiluna mine began operating in 1987 as a joint venture project. Production in 1990 totalled about 135,000 oz. gold.
Meanwhile, in the U.S., Asarco reported it will make a provision in its fourth-quarter earnings for environmental costs associated with the company’s current operations and with previously closed facilities and for the estimated cost of increased State of Arizona royalties.
The company said the provision will reduce 1990 after-tax earnings by about US$51.5 million (US$1.24 per share). Net earnings for the 9-month period ended Sept. 30 were US$145.4 million (US$3.50 per share).
“This provision will provide a level of reserves which we can reasonably estimate will be sufficient to cover the costs, outside of normal operating costs, that will be needed to meet our environmental responsibilities as we now know them,” Chairman Richard de J. Osborne said.
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