About Us Our Property Investor Resources Media News Contact Us Copper Creek Description & Location Geology 2007-2012 Drill Program Mineral Resource Estimate Property History 2010 Scoping Study Technical Reports Property Map Copper Creek Redhawk’s Copper Creek Property is located 75 road miles northeast of Tucson and 15 miles northeast of San Manuel, in an area well situated in regard to […]
RELATED QUOTES Symbol Price Change RDK.TO 0.485 0.00 VANCOUVER, BRITISH COLUMBIA–(Marketwire -03/26/12)- Redhawk Resources, Inc. (“Redhawk” or the “Company”) (TSX:RDK.TO – News)(OTCQX: RHWKF.PK – News)(FFRANKFURT:QF7.F – News) is pleased to announce the framework for a NI 43-101 Pre-feasibility Study (“PFS”) on its 100% owned Copper Creek, Arizona project to be led by KD Engineering of Tucson, Arizona. An updated NI 43-101 resource […]
Grupo Mexico ordered to pay $1.3 bil over deal
1 comment by Max Jarman – Oct. 19, 2011 05:56 PM
The Arizona Republic
Mexican conglomerate Grupo Mexico SAB, which bankrupted Arizona miner Asarco LLC and then recovered the company after shedding billions of dollars in U.S. environmental liabilities, is in trouble over another controversial transaction.
A Delaware judge has ordered the company to pay more than $1.3 billion to minority owners of its Phoenix-based Southern Peru Copper Corp. unit over a deal it engineered in 2005.
Documents in Delaware’s Chancery Court show that Grupo owned a 55 percent stake in Southern Peru in 2005, when it got the company to buy its ailing Minerva Mexico mining unit for $3.75 billion in stock.
Southern Peru’s minority shareholders sued, claiming that the price of Minerva was inflated and that the transaction unfairly benefited Grupo Mexico.
The court recently determined Minerva was worth only $2.43 billion at the time and ordered Grupo Mexico to return the overpayment.
Grupo plans to appeal the decision to the Delaware Supreme Court.
The deal was part of a complicated restructuring in which Grupo put its troubled Asarco unit into bankruptcy and dumped its ailing Minerva Mining business on Southern Peru.
Grupo acquired its stake in Southern Peru for $750 million in 2003 from Asarco, which Grupo had acquired in a leveraged buyout in 1999.
Asarco came with huge legacy environmental liabilities related to dozens of old mine and mill sites across the U.S. Without the support of the Southern Peru dividends, the company ran into financial trouble. Asarco filed for Chapter 11 protection in 2005.
Grupo Mexico was then removed from control of Asarco, and an independent operating committee restored the Tucson-based company to profitability and was able to discharge much of the environmental liabilities.
The independent operators of Asarco also sued Grupo, alleging it underpaid for Southern Peru and thereby defrauded Asarco’s creditors. A federal judge agreed and ordered Grupo to return 30 percent of Southern Peru’s outstanding shares, plus dividends, to Asarco.
The issue became moot in 2009, when Grupo regained control of Asarco in a Bankruptcy Court battle with India-based miner Sterlite Industries.
Grupo now wants to merge the restructured Asarco with Southern Peru Copper, which has been renamed Southern Copper Corp.
Asarco operates the Mission, Ray and Silver Bell mines in Arizona.
Southern Copper, based in Phoenix, operates mines in Peru and Mexico.
Expanding copper giant marks its century in Arizona mining
1 comment by Ryan Randazzo – Feb. 24, 2012 02:46 PM
The Republic | azcentral.com
Tucson-based copper-mining giant Asarco will celebrate more than 100 years of operations in Arizona today and reports that its operations are growing.
Asarco operates the Mission mine near Sahuarita, the Ray mine near Kearny and the Silver Bell mine near Marana as well as its 101-year-old concentrator and 100-year-old smelter in Hayden, which will be celebrated along with Arizona’s centennial.
State, town and county representatives are expected to be on hand for the celebration at the Hayden Golf Course, which will end with a fireworks display at dusk.
It opened the Hayden smelter to process ore from the nearby Ray mine, which it did not own at the time.Asarco was organized in 1899 as the American Smelting and Refining Co.
It has faced many struggles in its history, including low copper prices.
Due to the Depression, the smelter was shut down in March 1933 and did not start up again until late 1937, when natural gas first came to the smelter, according to Asarco.
In May 1958, the owner of the Ray mine terminated its contract to ship concentrates to Hayden, ending a nearly 50-year relationship. By then, Asarco was starting up its own mines and mills in Arizona, with Silver Bell coming on line in 1952 and Mission in 1961, providing substitutes for the Ray concentrates.
Through exploration, Asarco continued to find copper reserves to extend the mines’ lives by decades. Keeping those mines operating also has kept the smelter in business.
A company known as Kennecott operated its own smelter in the region from 1958 to 1982. After it shut down, in 1986 Asarco bought the Ray mine and again began feeding the smelter from that operation.
In 1999, Asarco was acquired by Grupo Mexico SAB. Grupo put Asarco into bankruptcy in 2005 and again acquired the company in 2009.
Asarco is expanding the Mission mine through a $60 million project expected to be finished next year. It will increase the production capacity of its copper concentrator, which processes the mine’s ore.
Asarco also is spending about $5 million to possibly restart mining molybdenum at the Mission property.
The company also is considering an expansion at the Ray mine, said Tom Aldrich, vice president of environmental affairs.
“We actively, at all of our properties, are doing exploration drilling to redefine what the ore reserves are,” he said.
He said when he was working at the Hayden complex in 1976, the Ray mine was predicted to operate for 30 more years.
“Now, we mine twice as much as we used to and have ore reserves for another 30 years,” he said.
The mine has enough reserves to operate until 2044, according to the company.
The Hayden smelter mostly processes material from Asarco’s mines but also does some processing for other mining companies, such as Phoenix-based Freeport-McMoRan Copper and Gold Inc., he said.
Once copper ore is processed at the smelter into anodes that are about 98.5 percent to 99 percent pure copper, it is shipped to Amarillo, Texas, where Asarco further refines it so it can be used for wiring, electrical components and other materials.
Asarco employs about 2,600 people, mostly in Arizona, and some of them have been working at the concentrator and smelter for generations, Aldrich said.
The centennial celebration comes amid an Environmental Protection Agency investigation into the Hayden operations.
In November, the EPA surprised Asarco with a “finding of violation,” which stated that since 2005 the Hayden smelter has been in violation of air-pollution rules. EPA spokeswoman Margot Perez-Sullivan in San Francisco declined to comment because the investigation is ongoing.
Asarco in Arizona
Ray and Hayden operations: A large open-pit mine, two concentrators, smelter and other facilities in Pinal and Gila counties. Produced 83.3 million pounds of copper cathode and 350.3 million pounds of copper anode in 2010. Spent $294.5 million on materials, energy, supplies, etc. that year. Employs about 1,400 people.
Mission complex: Five open-pit mines in Pima County. Produced $183.9 million pounds of copper concentrates in 2010 and spent $118.4 million that year, including $35.4 million in royalties to the state and $23.4 million to the Tohono O’odham Nation. Employs about 600 people.
Silver Bell: Four open-pit mines in Pima County. Produced 46.3 million pounds of copper cathode in 2010 and spent $25 million that year. Employs about 155 people.
Unique copper mine in Florence photos
The traditional icons of Arizona miners are picks and shovels, but a new project possibly starting up next year in Florence could harvest copper from deep underground without moving a spade of dirt. In photo, samples of bedrock show green copper oxide miniralization.
Test-field well heads from the 1990s sit on a copper extraction site outside Florence in an area which is now the Curis Resources (Arizona) Inc. Florence Copper Project. The company plans to mine the copper with hundreds of pumps that send acid underground to dissolve the copper minerals, then suck the liquid and copper back to the surface.
Florence eager to discuss copper mine
Council moves ahead despite firm’s delay
2 comments by Ryan Randazzo – Oct. 27, 2011 12:00 AM
The Arizona Republic
The town of Florence is not letting Curis Resources Ltd. off the hook, announcing that the Town Council will address the issue of the Canadian company’s plans to mine copper in town even though the proposal was withdrawn.
Curis officials last week withdrew their request for zoning changes needed from the town to proceed with their full mine, although the company says part of the mine can be developed on state land without the town’s approval.
But the Town Council issued a press statement declaring it will take a public vote on whether to accept that withdrawal, and if the members reject the withdrawal, they can vote on whether or not to grant the zoning changes the mine needs.
“This is the direction of the entire council,” deputy town manager and spokesman Jess Knudson said. “Essentially it is a reaction to Curis pulling the application two years in a row. It’s been a pretty big deal. There are a lot of folks in town who feel strongly one way or another.”
Knudson said about 300 people showed up to one Planning and Zoning Commission meeting and about 275 to another when the mine was discussed.
At the last meeting, the commission, which advises the Town Council, rejected one of the mining company’s applications and deadlocked on another.
Curis officials said they would withdraw their application until they get the needed environmental approvals from the state and Environmental Protection Agency, which could put the town more at ease.
But Knudson said the town leaders want to address the issue, not wait.
“It is something that is very closely looked at and a highly debated topic in the community,” he said. “This is not so much a reaction to Curis as it is the council wanting to speak out on the project.”
The council will meet at 6 p.m. Nov. 7 at Florence High School. The meeting will be broadcast live online.
The officials will first vote whether to accept the withdrawal, and if they reject that, they will address the zoning changes.
If the meeting runs long, they plan to recess at 11 p.m. and reconvene the next night at the same place.
Curis plans to use a process called “in-situ” copper recovery, which involves pumping acid underground to collect copper, sucking it back to the surface and processing the copper from it.
Nearby landowners and town residents have fought the plans because they worry that pumping acid underground would pollute the area’s drinking water.
Proposed Tucson copper mine hits EPA roadblock
14 comments Jan. 21, 2012 02:01 PM
TUCSON — The Environmental Protection Agency says it’s not ready to recommend approval of a federal permit for a planned copper mine southeast of Tucson because of water concerns.
The EPA says the proposed Rosemont Mine could “damage the water quality and ecosystem of two key streams, Cienega Creek and Davidson Canyon” and called them “aquatic resources of national importance.”
According to the Arizona Daily Star, the federal agency also says Rosemont Copper hasn’t shown that the mine would meet all the federal guidelines needed to obtain the key permit.
EPA officials also say the mine could adversely affect seven threatened and endangered species — the Chiricahua leopard frog, Mexican spotted owl, Southwestern willow flycatcher, lesser long-nosed bat, ocelot, Gila topminnow and jaguar.
9 comments by Erin Kelly – Feb. 9, 2012 05:05 PM
Republic Washington Bureau
WASHINGTON – Developers of what would be North America’s largest copper mine told senators Thursday they risk losing funding from their parent company if Congress doesn’t clear the way for the project near Superior by year’s end.
Resolution Copper Co. Vice President Jon Cherry told a Senate panel that the company already has spent $750 million studying the feasibility of the mine and must now convince its parent company, Australia-based Rio Tinto, to invest $6 billion to develop the project. But that could be difficult if the Senate does not soon approve a land exchange to allow the mine’s development, Cherry said.
Resolution is seeking to develop a mine 7,000 feet underground in the Copper Triangle region of southeast Arizona at the site of the old Magma Copper Co. mine. Company officials say it could bring 3,700 mining jobs and 3,000 construction jobs to Arizona and generate nearly $20 billion in tax revenue to federal, state and local governments.
Without that certainty, Rio Tinto may decide to invest elsewhere, Resolution Copper officials said.”To make a financial investment of more than $6 billion, we need the certainty of a congressional law which directs the 2,442 acres of federal land be transferred to us before we can make this type of investment,” Cherry told the Senate Energy and Natural Resources Committee.
Critics, including environmental groups and the Inter Tribal Council of Arizona, say the mine could threaten the region’s water supply and harm sacred tribal grounds.
The company has been seeking the land exchange since 2005. The House approved the exchange last year. The measure has not been taken up by the Senate. Under the proposed exchange, the federal government would give Resolution Copper 2,422 acres in the Oak Flat area of the Tonto National Forest in exchange for 5,300 acres of environmentally sensitive land owned by the company throughout Arizona.
Energy committee Chairman Jeff Bingaman, D-N.M., called the hearing to talk about differences in the House-approved bill by Rep. Paul Gosar, R-Ariz., and a bill passed in the last Congress by the Senate energy committee. A Senate bill has not been introduced in the current Congress, although the House bill has the support of Arizona Republican Sens. John McCain and Jon Kyl.
Bingaman expressed concern that the House-approved bill mandates an environmental review of the project only after the land swap — not before — and that it eliminates a provision that would give the Secretary of Agriculture power to nix the project if he determines it is not in the public interest.
4 comments by Jennifer A. Johnson – Jan. 7, 2011 05:05 PM
Cronkite News Service
SUPERIOR – Empty storefronts line Main Street, boarded-up reminders of the days when mining made this town’s economy hum. Jobs are scarce for those who aren’t able or willing to drive 30 miles or more west into the Phoenix metropolitan area.
For Mayor Michael O. Hing, it only makes sense to support a plan to mine a huge copper deposit deep below the national forest just east of town. Resolution Copper Mining LLC says the mine would employ hundreds over the next 60-plus years.
http://ad.doubleclick.net/adi/N5664.2664.0290430894321/B6226516;sz=300×250;click=http%3A//gannett.gcion.com/adlink%2F5111%2F328113%2F0%2F170%2FAdId%3D2518195%3BBnId%3D1%3Bitime%3D487626231%3Blink%3D;ord=487626231?Hing has another reason to support the mine despite concerns raised by Native Americans, conservation groups and some Superior residents: an agreement in which the company promises what could total millions of dollars over the life of the mine provided that he and members of the Town Council formally back the project and continue doing so.
In the “mutual benefits agreement” signed in 2008 and renewed recently, the town pledged its support for federal legislation that would make the mine possible by exchanging protected land in the Tonto National Forest for parcels of comparable value elsewhere in the state. Any official communication opposing the plan to the governor or a member of Arizona’s congressional delegation would void the deal, and the town agreed to provide letters of support to those same officials.
A Cronkite News Service review found that in promoting its plans Resolution Copper has created similar agreements with groups whose opposition could be detrimental:
-� Resolution Copper has offered in return for a rock-climbing group’s support to press the federal government to establish alternate climbing sites. It also has proposed paying the group $50,000 to help establish new climbing routes.
-�Resolution Copper purchased and made part of the proposed exchange family-owned grassland in southern Arizona and mesquite forest near San Manuel that Audubon Arizona and the Nature Conservancy, among others, want to preserve. Both groups have taken no stand either way on the land exchange.
David Salisbury, CEO of Resolution Copper, said the company has cultivated relationships with groups around the state to try to build consensus and address concerns.
“Anybody that has raised their hand and had an interest we’ve been willing to bring them to the table,” he said. “We recognize that we have an impact and we want to make sure we are playing a part in mitigating, where we can, at least some of those impacts and exercising our civic responsibility as a good corporate citizen.”
Sandy Bahr, executive director of the Sierra Club’s Grand Canyon Chapter, which has consistently opposed Resolution Copper’s plans, called the approach “particularly ugly.”
“From throwing cash around to trying to get people to withdraw their opposition, the greater public interest is going out the window,” Bahr said.
The negotiations have created sharp divisions within Superior, the rock-climbing advocacy group, local chapters of the Audubon Society and conservation organizations.
“I think it’s part of Resolution Copper’s plan to wear people down,” said Manuel Rangel, who eventually left the Queen Creek Coalition, the group advocating for rock climbers.
More than a mile beneath an area known as Oak Flat lies what Resolution Copper calls the largest untapped copper lode in the U.S. But because an order by President Dwight D. Eisenhower withdrew some of the land from mining, recognizing it as a valuable recreational resource, the company must trade the government land of equal value to take over Oak Flat.
A joint venture of Anglo-Australian mining giants Rio Tinto and BHP Billiton, Resolution Copper has proposed using a technique that would remove the ore by tunneling into the earth. But opponents contend that even with that technique the landscape will subside and the water table will be undermined, drying up surface water and harming wildlife.
Saying the mine would create jobs and boost the state’s economy, Republican Sens. John McCain and Jon Kyl and Democratic Rep. Ann Kirkpatrick, who lost her re-election bid in the district that includes the site, have sponsored bills in the Senate and House that would trade about 2,400 acres at Oak Flat for nine blocks of land elsewhere in Arizona.
Fierce opposition from conservation groups and Native Americans, who consider Oak Flat and its surroundings sacred, helped stall the legislation in the past several years. So did the 2008 indictment of former Rep. Rick Renzi, R-Ariz., whose district included the mine site, on charges that, among other things, he tried to enrich himself and an associate from the exchange.
Doug Kysar, a professor who specializes in environmental law at Yale Law School, said from the perspective of the mining company it’s good corporate citizenship to try to achieve support and consensus.
“Resolution is trying to achieve a broad base of support for the project, and you will hopefully see it in the operations of the mine,” Kysar said.
But Erica Rosenberg, a former staff member of the U.S. House Resources Committee who now works for the advocacy group People United for Parks, said the process in such dealings isn’t very transparent. She called it a “divide-and-conquer” approach to negotiation rather than taking into account the broader public need.
Emotions boiled when Superior Town Council members discussed whether and how to renew the town’s 2008 “mutual benefits agreement” with Resolution Copper, which was set to expire in late December.
Councilman Gilbert Aguilar said he supports the mine but considered the agreement weighted in Resolution Copper’s favor.
“We are all for the mine, but if we don’t check on these things we aren’t doing our jobs,” said Aguilar, who at a later meeting voted for the agreement.
The document, renewed in late December, promises Superior $100,000 per year before passage of the land swap, then after passage $200,000 in the first year, $300,000 in the second and $400,000 each year after that.
Allocated by a board that includes company officials and Superior residents, the money could be used for “social impact” projects such as promoting tourism, improving parks and bolstering schools.
The land exchange would provide Superior, which is surrounded by federal land, the opportunity to buy from the U.S. government parcels totaling over 550 acres, including its airstrip and other land owned by the U.S. Forest Service. Under its deal with the town, Resolution Copper would make available an $8 million interest-free loan to purchase the land.
The agreement also would transfer to Superior, at no cost, title to the town’s cemetery, which is on federal land.
With the land swap uncertain, community members who support the mine have placed signs of support in windows along Main Street.
But Richard Green, a former council member, said the town is giving away too much by agreeing to not take formal positions against Resolution Copper.
“Signing this agreement could put a muzzle on future councils in order to keep these benefits,” he said.