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Posted on Wed, Aug. 02, 2006



Mining company faces $1.3B in cleanup costs


MCCLATCHY NEWS SERVICE

MINING COMPANY FACES $1.3B OF CLAIMS FOR ENVIRONMENTAL CLEANUP COSTS

WASHINGTON - The federal government has filed up to $1.3 billion in environmental cleanup claims against Asarco, a century-old mining and smelting company that sought bankruptcy protection last year amid allegations its Mexican owners had sold off its most lucrative assets.

The federal claims represent only a portion of what Asarco may owe its creditors, including at least $500 million in asbestos exposure-related claims and hundreds of millions of dollars more to such states as Washington for their environmental cleanup costs.

The federal claims involve 31 sites, including Superfund sites, in 14 states, including Washington, Idaho, Missouri, Kansas, California, Texas and Illinois.

The environmental claims were among the largest ever filed by the Justice Department in a bankruptcy case, said Cynthia Magnuson, a department spokeswoman.

The federal government claims are unsecured. With the Superfund essentially depleted, federal taxpayers may end up paying for the Asarco cleanups.