Copper king
This week, US-based Freeport-McMoRan Cooper & Gold announced it would acquire US-based rival Phelps-Dodge, This $25.9 billion deal would create the #1 North American copper producer and the #1 publicly held copper company. Currently, Australia-based BHP Billiton is the worlds' largest publicly held copper producer.
The combined operation would have worldwide holdings in such countries as the Congo, Indonesia, Chile, Peru, and the United States.
Copper hit an all-time high in May of 2006, though it has slipped somewhat since then. But prospects are reportedly good for stable prices thanks to growth in the Chinese economy and the depletion of some major copper mines.
This comes as a part of a steady consolidation of the mining industry over the last decade. Phelps-Dodge itself lost our a bid to buy out Canadian mining companies Inco, a major nickel and copper producer, and Falconbridge Ltd, a nickel producer. Swiss-based Xstrata eventually bought Falconbridge and Brazilian firm CVRD bought Inco. The gold mining area has also seen a lot of activity, as cash rich mining companies try to bulk up on proven reserves.
There are rumors that BHP Billiton might decide to buy Freeport and/or Phelps. Other possible bidders are industry giants Rio Tinto PLC, Grupo Mexico and Anglo
11:20:59 AM 
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