Testimony concludes in Texas Asarco trial

By GABRIELA RICO - Arizona Daily Star - 06/12/08

BROWNSVILLE, Texas — Testimony concluded Wednesday in the fraud trial involving Tucson copper producer Asarco LLC and its former parent company.

After attorneys for Americas Mining Corp., a U.S. subsidiary of Mexico City-based Grupo Mexico, rested their case, U.S. District Judge Andrew S. Hanen heard testimony from one more Asarco witness before adjourning.

Attorneys then had the afternoon to prepare for today, when each side will have four hours to make a last impassioned plea to the court during closing arguments.

Asarco is suing Americas Mining Corp., alleging fraudulent transfer of Asarco’s majority share in two Peruvian copper mines and related facilities. Asarco alleges operating revenue lost due to the transaction led to its 2005 bankruptcy.

In its lawsuit, Asarco says neglect by Grupo Mexico — after it extracted the lucrative mine shares — forced Asarco to “cannibalize itself” and that the company was in danger of closing mining operations. Asarco operates three open-pit copper mines in Arizona. Lawyers presented numerous e-mails and memorandums from Asarco officials to Grupo executives warning about the failing health of Asarco.

Grupo CEO Germán Larrea testified Tuesday that Asarco was mismanaged at the local level and continually turned to its parent company for more money.

The defense team for Grupo’s Americas Mining Corp. is led by Houston attorney Brian F. Antweil of Haynes and Boone, a law firm with 500 lawyers and 10 offices, including one in Moscow and in Mexico City. Asarco’s legal team is headed by Houston attorney Irv Terrell of Baker Botts, a firm with 800 attorneys in 11 offices throughout the world, including Beijing and London.

Asarco is seeking $11.3 billion in damages and the return of its majority interest in the mines in the Andes Mountains of Peru.

The sole decider in this case is Hanen, who was nominated to the federal bench by President Bush in 2002.

The native of Waco, Texas, received his law degree from Baylor University in 1978 and practiced civil law in Houston for more than 20 years.

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