In late 2005, Phelps-Dodge Corporation, one of the world's leading metals producers had to decide whether to open a new copper mine near Safford, Arizona at a projected cost of $550 million dollars. The mine would produce an estimated 125,000 tons of copper per year but would do so at a relatively high cost compared to mines in Latin America, Russia, Australia, and Indonesia. Given the historically high price of copper in 2005, should Phelps Dodge make this investment?
Fall 2009
