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Tucson copper producer Asarco LLC has made over $1 billion in profits since filing for bankruptcy reorganization three years ago.

And if the company succeeds in its quest to emerge from bankruptcy with a new India-based parent company — which plans to double operations — those profits could soar.

Asarco's operating report for June showed net income of $36.5 million on sales of $150.1 million. Since filing for Chapter 11 bankruptcy protection on Aug. 9, 2005, profits totaled $1.05 billion on sales of $4.16 billion.

By comparison, the largest U.S. mining company, Phoenix-based Freeport McMoRan Copper & Gold Inc., made nearly $1 billion in profits just in the second quarter of 2008.

Because Asarco is under the jurisdiction of the U.S. Bankruptcy Court, it does not have sole discretion over how to spend those profits, according to bankruptcy law.

For example, Asarco cannot pay dividends to shareholders or issue bonuses to executives while in bankruptcy.

The eye-popping profits are largely due to the rise in copper prices over the past three years.

Copper prices were $1.65 per pound when Asarco filed for bankruptcy protection on Aug. 9, 2005. Today, the metal is selling for around $3.70 per pound.

Asarco, headquartered at 5285 E. Williams Circle, refines more than 500 million pounds of copper annually. It operates a smelter and three open-pit mines in Southern Arizona and a refinery in Amarillo, Texas.

Two plans to bring Asarco out of bankruptcy have been submitted to the court.

On May 31, Sterlite Industries Ltd. — a subsidiary of India-based Vedanta Resources PLC — made a bid of $2.6 billion to buy Asarco's operating assets and bring the company out of bankruptcy. Asarco's former parent company, Mexico City-based Grupo Mexico, wants Asarco back and has been authorized to submit a reorganization plan to the bankruptcy court to compete with Sterlite's bid.

Earlier this month, officials from Vedanta said they intend to double Asarco's production if they take over the company.