The Hindu Business Line : Sterlite reaches agreement with Asarco unions

Mumbai, July 10 Sterlite Industries (India) said that it has reached an agreement with the unions representing the workers of the US-based integrated copper refining company Asarco.

On May 30, Sterlite Industries, a subsidiary of the Vedanta Resources Plc, won the auction to acquire the assets of Asarco for $2.6 billion.

Asarco is a 100-year-old company and the third largest copper producer in the US. In 2005, Asarco filed a bankruptcy protection petition before the Unites States Bankruptcy Court. The US bankruptcy judge has also permitted Asarco’s parent company, Grupo Mexico, to submit a reorganisation plan for Asarco. The parent company lost control of Asarco after it filed for bankruptcy.

A release from Sterlite here said the judge has approved the bid protection contemplated by the purchase and sale agreement with Asarco, which includes a break-up fee of $52 million payable to Sterlite under certain circumstances.

The agreement with the unions retains all existing worker benefits, contains terms that are designed to ensure that Asarco operations will be improved and made more competitive. There are also strong commitments to ensure Sterlite invests in and operates all Asarco’s existing operations. The parties have agreed that the term of the current agreement expiring in 2010 will be extended to 2013, Sterlite said.

“We regard our employees as a vitally important part of our business and are extremely happy to have concluded a mutually satisfactory agreement with their representatives,” said Mr Anil Agarwal, Chairman of Sterlite. On Thursday, Sterlite stock on BSE closed at Rs 650.80, up 1.93 per cent over the previous close.