SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_______________
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the plan year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to ___________________
Commission File Number 0-10122
Savings Plan for Hourly-Rated Employees of
Magma Copper Company, Magma Metals Company,
San Manuel Arizona Railroad Company
and Magma Arizona Railroad Company
(Full title of the plan and the address of the plan, if different from that
of the issuer named below)
Magma Copper Company
7400 North Oracle Road, Suite 200
Tucson, Arizona 85704
(Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office)
<PAGE>
MAGMA COPPER COMPANY
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1993 AND 1992
(prepared in accordance with the financial reporting
requirements of the Employee Retirement Income
Security Act of 1974, as amended),
TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
<PAGE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY,
MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
FINANCIAL STATEMENTS AND SCHEDULES
AS OF DECEMBER 31, 1993 AND 1992
TOGETHER WITH REPORT OF
INDEPENDENT PUBLIC ACCOUNTANTS
<PAGE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1993 AND 1992
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
FINANCIAL STATEMENTS
Statements of Net Assets Available for Plan Benefits
as of December 31, 1993 and 1992
Statement of Changes in Net Assets Available for
Plan Benefits for the year ended December 31, 1993
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
SCHEDULES
I Item 27a - Schedule of Assets Held for Investment Purposes as of
December 31, 1993
II Item 27d - Schedule of Reportable Transactions for the year ended
December 31, 1993
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administration Committee of the
Savings Plan For Hourly-Rated Employees
of Magma Copper Company, Magma Metals Company,
San Manuel Railroad Company and
Magma Arizona Railroad Company:
We have audited the accompanying statements of net assets available for plan
benefits of the SAVINGS PLAN FOR HOURLY-RATED EMPLOYEES OF MAGMA COPPER
COMPANY, MAGMA METALS COMPANY, SAN MANUEL RAILROAD COMPANY AND MAGMA ARIZONA
RAILROAD COMPANY as of December 31, 1993 and 1992, and the related statement
of changes in net assets available for plan benefits for the year ended
December 31, 1993. These financial statements and the schedules referred to
below are the responsibility of the Plan's management. Our responsibility is
to express an opinion on these financial statements and schedules based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of the
SAVINGS PLAN FOR HOURLY-RATED EMPLOYEES OF MAGMA COPPER COMPANY, MAGMA METALS
COMPANY, SAN MANUEL RAILROAD COMPANY AND MAGMA ARIZONA RAILROAD COMPANY as of
December 31, 1993 and 1992, and the changes in net assets available for plan
benefits for the year ended December 31, 1993, in conformity with generally
accepted accounting principles.
<PAGE>
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental
schedules have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
ARTHUR ANDERSEN & CO.
Tucson, Arizona,
May 17, 1994.
<PAGE>
<TABLE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
AS OF DECEMBER 31, 1993 AND 1992
<CAPTION>
1993 1992
----------- ----------
<S> <C> <C>
INVESTMENT FUNDS, at market value
(Notes 1 and 2):
Retirement Preservation Trust $ 4,502,744 $ --
Capital Fund 4,249,721 2,553,729
Federal Securities Trust 2,903,372 1,620,986
Phoenix Fund 872,233 360,526
Basic Value Fund 609,514 305,728
Global Allocation Fund 90,330 --
Ready Assets Trust -- 3,359,341
---------- ---------
13,227,914 8,200,310
COMPANY STOCK, at market value 81,804 55,431
PARTICIPANT LOANS 936,985 426,396
---------- ---------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $14,246,703 $8,682,137
========== =========
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
<CAPTION>
Retirement Federal
Preservation Capital Securities
Trust Fund Trust
------------ ---------- ----------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income -
Interest and dividends $ 112,066 $ 267,723 $ 138,136
Realized gain on sale
of assets -- 28,785 6,235
Unrealized gain on
assets -- 147,952 23,073
--------- --------- ---------
112,066 444,460 167,444
--------- --------- ---------
Contributions (Note 1)
Employee 506,124 1,426,047 693,469
Employer 82,537 181,687 674,820
--------- --------- ---------
588,661 1,607,734 1,368,289
--------- --------- ---------
Total additions 700,727 2,052,194 1,535,733
--------- --------- ---------
Transfers to/(from)
investment options
including participant
loan transactions 3,902,678 (231,023) (109,351)
DEDUCTIONS FROM NET ASSETS:
Distributions to
participants (100,661) (125,179) (143,996)
--------- --------- ---------
Net increase (decrease) 4,502,744 1,695,992 1,282,386
NET ASSETS, beginning
of year -- 2,553,729 1,620,986
--------- --------- ---------
NET ASSETS, end of year $4,502,744 $4,249,721 $2,903,372
========= ========= =========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
<CAPTION>
Basic Global
Phoenix Value Allocation
Fund Fund Fund
------------ ---------- ----------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income -
Interest and dividends $ 93,479 $ 33,531 $ 3,386
Realized gain on sale
of assets 10,437 7,682 417
Unrealized gain on
assets 52,649 43,525 303
--------- --------- -------
156,565 84,738 4,106
--------- --------- -------
Contributions (Note 1)
Employee 267,930 247,663 11,070
Employer -- -- --
--------- --------- -------
267,930 247,663 11,070
--------- --------- -------
Total additions 424,495 332,401 15,176
--------- --------- -------
Transfers to/(from)
investment options
including participant
loan transactions 96,901 (6,145) 75,192
DEDUCTIONS FROM NET ASSETS:
Distributions to
participants (9,689) (22,470) (38)
--------- --------- -------
Net increase (decrease) 511,707 303,786 90,330
NET ASSETS, beginning
of year 360,526 305,728 --
--------- --------- -------
NET ASSETS, end of year $ 872,233 $ 609,514 $ 90,330
========= ========= =======
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
<CAPTION>
Ready
Assets Company Participant
Trust Stock Loans Totals
----------- --------- ----------- --------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income -
Interest and dividends $ 68,716 $ 75 $ -- $ 717,112
Realized gain on sale
of assets -- (395) -- 53,161
Unrealized gain on
assets -- 6,326 -- 273,828
---------- ------- ------- ----------
68,716 6,006 -- 1,044,101
---------- ------- ------- ----------
Contributions (Note 1)
Employee 755,901 5,042 -- 3,913,246
Employer 173,524 -- -- 1,112,568
---------- ------- ------- ----------
929,425 5,042 -- 5,025,814
---------- ------- ------- ----------
Total additions 998,141 11,048 -- 6,069,915
---------- ------- ------- ----------
Transfers to/(from)
investment options
including participant
loan transactions (4,275,316) 15,325 531,739 --
---------- ------- ------- ----------
DEDUCTIONS FROM NET ASSETS:
Distributions to
participants (82,166) -- (21,150) (505,349)
---------- ------- ------- ----------
Net increase (decrease) (3,359,341) 26,373 510,589 5,564,566
NET ASSETS, beginning
of year 3,359,341 55,431 426,396 8,682,137
---------- ------- ------- ----------
NET ASSETS, end of year $ -- $ 81,804 $936,985 $14,246,703
========== ======= ======= ==========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1993 AND 1992
(1) DESCRIPTION OF PLAN:
The following description of the Savings Plan for Hourly-Rated Employees of
Magma Copper Company, Magma Metals Company, San Manuel Railroad Company and
Magma Arizona Railroad Company (the Plan) provides only general information.
More complete information regarding the Plan's provisions may be found in the
plan document.
General
The Plan was established on January 1, 1987 by Magma Copper Company (the
Company) and is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Tax Status
The Plan obtained its latest determination letter on July 14, 1988, in which
the Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code (the
Code). The Plan has been amended since receiving the determination letter.
However, the Plan administrator and the Plan's tax counsel believe that the Plan
is currently designed and being operated in compliance with the applicable
requirements of the Code. Therefore, they believe that the Plan was qualified
and the related trust was tax-exempt as of the financial statement date.
The Plan has not been restated in accordance with the Tax Reform Act of 1986
(TRA '86); however, the Plan administrator and the Plan's tax counsel believe
the Plan, as currently designed and operated, is in compliance with the
applicable requirements of the Code. The Plan must be amended by December 31,
1994 to comply with TRA '86. It is the Plan Administrator's intent to do so and
to request an updated tax determination letter at that time.
<PAGE>
Trust
The assets of the Plan are held by the MAGMA COPPER COMPANY TRUST FOR SAVINGS
PLANS (the Trust). However, the records of each Plan within the Trust are
maintained separately and certified by Merrill Lynch Trust Company (the Trustee)
as being accurate and complete as reported therein. Expenses incurred by the
Trustee in the performance of its duties, including fees for its services, are
paid by the Company.
Eligibility, Contributions and Vesting
Hourly-rated employees are eligible to participate in the Plan after having
completed sixty (60) working days from the date of employment with the Company.
Participants can elect to contribute up to 12 percent of their annual
compensation to the Plan. Participants may also elect to have all or a portion
of their quarterly bonus credited to their account. Participants' contributions
and deferred bonus contributions are fully vested at all times.
The Plan provides that the Trustee may accept from a participant a contribution
representing distributions from another plan which meets the requirements of
Section 401(a) of the Code. Such "rollover contributions" shall be fully vested
and shall not be subject to, or affect in any way, the maximum contribution
limitation.
During 1992, the Plan was amended to provide for Company contributions (Note
4). The Company contributions will vest to the participant in accordance with
the following schedule. Continuous service begins on the employee's date of
hire.
Months of Continuous Service Vesting %
---------------------------- ---------
0-35 0%
36-47 40%
48-59 60%
60 or more 100%
Each participant's account is credited with the participant's contribution and
an allocation of Plan earnings on a monthly basis. Allocations are based on
participant account balances.
For both employer and employee contributions, participants elect to have their
accounts invested in various Merrill Lynch funds or in the common stock of the
Company. Company contributions to the employees' accounts will be invested in
the Federal Securities Trust unless the participant directs otherwise. A
description of each Merrill Lynch fund is as follows:
Retirement Preservation Trust
This trust invests primarily in a broadly diversified portfolio of guaranteed
investment contracts, U.S. government securities and high quality money market
funds. It seeks to provide preservation of participants' investments and
liquidity with income typically higher than money market funds.
<PAGE>
Capital Fund
The options in this fund are invested primarily in stock or convertible
securities of corporations. Total investment return is the aggregate of income
and capital value changes.
Federal Securities Trust
The investments in this fund include U.S. Treasury and Government agency
securities, mortgage backed securities and options and futures transactions.
This fund seeks high current return on investments.
Phoenix Fund
The options in this fund are invested in a diversified portfolio of equity and
fixed income securities of issuers in weak financial condition which are
believed to be undervalued. Investment in this fund is speculative and involves
a high degree of risk and is designed for investors who do not require current
income and who can afford the accompanying risk.
Basic Value Fund
The investments in this fund consist of securities, primarily equities, which
are believed to be undervalued. Total investment return is the aggregate of
income and capital value changes.
Global Allocation Fund
This fund includes United States and foreign equity, debt and money market
securities. Total investment return is the aggregate of income and capital
value changes.
Ready Assets Trust
This fund is a money market fund and consists of short-term financial
instruments, including U.S. Treasury bills, bank certificates of deposit,
securities and commercial paper. The security of these investments rests in the
soundness of the underlying institutions.
Forfeitures
Forfeitures of terminated participants and nonvested Company contributions are
held by the fund for twelve months following termination. If the terminated
participant does not return to employment and active participation within the
twelve months following termination of employment, forfeitures are used to
reduce future Company contributions.
Upon re-employment of a former participant, any forfeitures of nonvested
Company contributions must be restored if the period of absence is less than
five years and the initial distribution is repaid within two years of re-
employment.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The financial statements of the Plan are prepared using the accrual method of
accounting. The Plan's investment funds are stated at market value, as
established by the Trustee at December 31, 1993 and 1992. Investments are
recorded on the trade date.
(3) PLAN TERMINATION:
Although the Company intends to continue the Plan, the Company has the right
to terminate the Plan at any time. If the Plan were terminated, all benefits
would become payable to the participants after the payment of expenses incurred
before the termination date.
(4) PLAN AMENDMENTS:
The Plan was amended effective January 1, 1992, to provide for annual Company
contributions. The contribution amount depends on the age of the employee with
contributions ranging from $100 to $8,000 per employee. No further employer
contributions shall be made on behalf of a participant after the Company has
contributed $8,000.
The Plan was amended effective July 15, 1993, to provide an additional
investment option to participants. This option consists of the common stock of
the Company. Such Company stock shall be acquired on the open market by the
Trustee.
(5) OMITTED SCHEDULES:
Based on the information provided by the Trustee, the Plan had no lease
commitments, obligations or leases in default, or party-in-interest
transactions, as defined by ERISA, during the year ended December 31, 1993.
(6) Reconciliation to Form 5500:
Prior to January 1, 1992, distributions payable to participants were recognized
as liabilities in the accompanying statements of net assets available for plan
benefits. In accordance with the AICPA Audit and Accounting Guide, Audits of
Employee Benefit Plans, these amounts were reclassified as part of net assets
available for plan benefits and totaled $104,946 and $36,325 as of December 31,
1993 and 1992, respectively. The Form 5500 requires that these amounts be
recorded as liabilities of the Plan. Therefore, the beginning and ending year
net assets amounts and the current year benefit payments do not agree with the
audited financial statements.
<PAGE>
<TABLE>
SCHEDULE I
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
EIN # 86-0219794
ITEM 27a - SCHEDULE OF ASSETS HELD
FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
<CAPTION>
Number of
Identify Description Shares or
of Issuer, of Due Principal Market
Borrower Investments Date Amount Rate Cost Value
- - - - - --------- ------------- ---- --------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Merrill Merrill Lynch
Lynch Retirement
Trust Preservation
Company Trust N/A 4,502,774 Various $ 4,502,744 $ 4,502,744
Merrill Lynch
Capital Fund
Class A shares N/A 151,938 Various 4,064,088 4,249,721
Merrill Lynch
Federal
Securities
Trust Class A
shares N/A 290,918 Various 2,880,363 2,903,372
Merrill Lynch
Phoenix Fund
Class A shares N/A 64,850 Various 799,429 872,233
Merrill Lynch
Basic Value
Fund Class A
shares N/A 26,081 Various 558,276 609,514
Merrill Lynch
Global
Allocation
Fund Class A
shares N/A 6,827 Various 89,996 90,330
---------- ----------
$12,894,896 $13,227,914
========== ==========
Magma Common stock N/A 6,173 N/A $ 43,770 $ 81,804
Copper ========== ==========
Company
Partici- Participant
pants loans secured
by vested
benefits 11/30/97* 936,985 6-6.5% $ 936,985 $ 936,985
========== ==========
* There are several different maturity dates for the various participant
loans. This date only represents one maturity date for one participant
loan.
The accompanying notes are an integral part of this schedule.
</TABLE>
<PAGE>
SCHEDULE II
SAVINGS PLAN
FOR HOURLY-RATED EMPLOYEES OF
MAGMA COPPER COMPANY, MAGMA METALS COMPANY,
SAN MANUEL RAILROAD COMPANY AND
MAGMA ARIZONA RAILROAD COMPANY
EIN # 86-0219794
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
The following Schedules of Reportable Transactions of the Plan have been taken
directly from the annual trustee report of Merrill Lynch Trust Company. The
transactions listed are those transactions or series of transactions in excess
of 5% of the current value of beginning Plan assets.
The accompanying notes are an integral part of this schedule.
<PAGE>
<TABLE>
Merrill Lynch
Schedule of Transactions in Excess of 5%
Magma Copper Company
Hourly Rated Employee Savings Plan
Consolidation
For the Period 1/1/93 - 12/31/93
<CAPTION>
No.
Tran Security of Shares Cost/Book
Type Description Trans Par Value Value
- - - - - ---- --------------- ----- ------------ -------------
<S> <C> <C> <C>
Opening Balance 8,682,215.77
MUTUAL FUNDS
Buy ML Phoenix Fund
CL A 89 42,856.24 566,541.06
Sell ML Phoenix Fund
CL A 42 8,741.58 104,983.66
Buy ML Fed Securities
Trust CL A 110 167,906.52 1,675,899.09
Sell ML Fed Securities
Trust CL A 105 41,685.13 411,425.24
Buy ML Capital Fund
Class A 109 77,770.40 2,156,293.61
Sell ML Capital Fund
Class A 79 22,821.19 604,163.71
Buy ML Basic Value Fund
Class A 65 14,950.83 342,686.13
Sell ML Basic Value Fund
Class A 42 3,900.69 80,668.33
MONEY MARKET
Buy ML Ret Preservation
Trust 77 4,896,060.61 4,896,060.61
Sell ML Ret Preservation
Trust 47 393,785.74 393,785.74
Buy ML Ready Assets
Trust 92 1,109,622.51 1,109,622.51
Sell ML Ready Assets
Trust 66 4,468,963.77 4,468,963.77
</TABLE>
<PAGE>
<TABLE>
Merrill Lynch
Schedule of Transactions in Excess of 5%
Magma Copper Company
Hourly Rated Employee Savings Plan
Consolidation
For the Period 1/1/93 - 12/31/93
<CAPTION>
Tran Security Proceeds Realized
Type Description of Sale Gain/Loss
- - - - - ---- --------------- ------------ -------------
<S> <C> <C>
Opening Balance
MUTUAL FUNDS
Buy ML Phoenix Fund
CL A 0.00 0.00
Sell ML Phoenix Fund
CL A 117,919.73 12,936.07
Buy ML Fed Securities
Trust CL A 0.00 0.00
Sell ML Fed Securities
Trust CL A 417,534.31 6,109.07
Buy ML Capital Fund
Class A 0.00 0.00
Sell ML Capital Fund
Class A 637,038.44 32,874.73
Buy ML Basic Value Fund
Class A 0.00 0.00
Sell ML Basic Value Fund
Class A 90,107.61 9,439.28
MONEY MARKET
Buy ML Ret Preservation
Trust 0.00 0.00
Sell ML Ret Preservation
Trust 393,785.74 0.00
Buy ML Ready Assets
Trust 0.00 0.00
Sell ML Ready Assets
Trust 4,468,963.77 0.00
</TABLE>
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Employees Savings Plan
DATE June 23, 1994 /s/ Douglas J. Purdom
---------------------------
Douglas J. Purdom
On behalf of the Administration
Committee, Administrator of the
Savings Plan for Hourly-Rated
Employees of Magma Copper Company,
Magma Metals Company, San Manuel
Arizona Railroad Company and Magma
Arizona Railroad Company
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation by reference of our report dated May 17, 1994 included
with this Form 11-K for the year ended December 31, 1993 relating to the
Savings Plan for Hourly-Rated Employees of Magma Copper Company, Magma
Metals Company, San Manuel Railroad Company and Magma Arizona Railroad
Company, into the Company's previously filed Registration Statement No.
33-66498 (Savings Plan for Hourly-Rated Employees).
ARTHUR ANDERSEN & CO.
Tucson, Arizona,
June 22, 1994.
