The Two ASARCOs Fight A Unique Battle

By Martin Bartlett

EL PASO — One parent company of ASARCO in El Paso said it had no plans to reopen the copper smelter or renew its air quality permits, but that did not necessarily equal a victory for those opposed to the plant.

Following a complex corporate chain, Grupo Mexico, Inc. owns ASARCO, Inc. They, in turn own ASARCO, LLC, which is a wholly separate business entity. The limited liability company based in Tucson owns the local El Paso smelter. Right now, that company in Tucson is operating under the direction of a federal bankruptcy court.

ASARCO, Inc. said that if it regained control of the Tucson company, it would not want to renew the El Paso plant’s air quality permit. The challenge is overcoming the decade-long bankruptcy litigation that has ensnared the limited liability company.

A spokeswoman with a public relations firm for ASARCO, Inc. in New York said the corporation just wants control of the company, but that raised further questions on what may ultimately be a moot point.

ASARCO, Inc. may resell the property to another group who would reopen it if it regained control. This would not be the case if the TCEQ rules on the renewal of the air quality permit before the corporation regained control. These are hypotheticals the city has yet to address in their struggle to keep the El Paso smelter closed.

Mayor John Cook was optimistic about the parent company challenging the subsidiary.

“The city of El Paso is very excited that ASARCO has decided not to renew its air quality permit and that ASARCO has decided not to renew its air quality permit,” Cook said.

This again oversimplifies a complex financial situation that has the local smelter now fighting a battle on two fronts.