Phelps Dodge’s plans to open a new copper mine near Safford is an indicator of the improving worldwide economy, according to Peter Faur, the company’s director of corporate communications.

“We have had a presence in Arizona since the 1880s and are pleased to have this opportunity to demonstrate our continued commitment to the state,” Mr. Faur said. Phelps Dodge’s announcement comes at what many hope to be the end of a long slump in the industry, especially in Arizona.

BHP Billiton has announced the permanent closure of its San Manuel mine and smelter after 50 years of operations. It has been on care and maintenance since May 1999 when mining operations ceased. Asarco, a subsidiary of Grupo Mexico, closed its Sacaton mine west of Casa Grande in 1986 after a dozen years in operation. Phelps Dodge suspended mining at its Miami facility several years ago. Asarco has cut back operations at its Mission Mine south of Tucson to barely a third of capacity.

On Nov. 1, Asarco allowed property taxes for its Gila County operations, including its smelter in Hayden, to go delinquent. The taxes were paid, along with penalties, last week, but not before prompting some in the industry to speculate that the company might be selling the property.

Ore Supply And Prices

The cause for the decline in mine activity throughout the state can be attributed to many factors, according to Mr. Faur. The slump in copper prices made some ore bodies no longer economically feasible, and in other areas the ore body may have just given out. For example, Mr. Faur said, Phelps Dodge engineers project the new Safford mine to have a life of 16 years. “That can change, of course, by virtue of how close to capacity we run or because of technological advancements or discoveries of near-by ore bodies,” he said.

The Safford mine would be the only Arizona mine that the company will develop from scratch. All of its other properties had experienced significant production of copper before Phelps Dodge acquired them.

“We bought into Bisbee and Morenci in1881,” according to spokesman Bruce Richardson. “The Ajo mine was purchased in 1930 and Jerome in 1935. We acquired Sierrita, Miami and Bagdad when we bought out Cyprus Mining in 1999. Our last new mine worldwide was Candelaria in Chile, which began production in 1994.”

With price as an indicator, the future of copper seems bright, at least in the short term. The market price for copper has risen steadily since November 2001 when it was selling for just over 60 cents per pound. Last week, copper hit $1.02 before falling back slightly. —