Phelps Dodge Uses Subsidiary Sales Proceeds to Increase Funding of Environmental Trust to $400 Million

PHOENIX, March 20 /PRNewswire-FirstCall/ -- Phelps Dodge Corp. announced today that it is using $300 million of the proceeds from the sale of its Columbian Chemicals Co. subsidiary to increase the funding of its environmental trust to $400 million.

The trust was established in December 2005 to help fund the company's global environmental remediation and reclamation activities. The first contribution to the fund, $100 million, occurred during that month.

Phelps Dodge Corp. is one of the world's leading producers of copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod. The company and its two divisions, Phelps Dodge Mining Co. and Phelps Dodge Industries, employ more than 13,500 people worldwide.