Mexican mining company Grupo Mexico SAB (GMEXICO.MX) said Friday it plans to appeal a U.S. district court ruling that it fraudulently transferred shares from one subsidiary to another and should return the shares and make other compensation.

A court in Browsville, Texas, ruled this week that Grupo Mexico should return to Asarco shares in Southern Copper Corp. (PCU) that it transferred to a separate subsidiary in 2003 as it merged its Mexican and Peruvian mining operations, and return dividends paid on those shares.

The award is estimated to amount to about $6 billion.

"Having analyzed the ruling along with our legal advisers, Grupo Mexico has decided to appeal the ruling," the company said in a press release.

Grupo Mexico said it considers the conclusions by U.S. District Court Judge Andrew Hanen to be erroneous and contradictory.

Grupo Mexico said even if the company is forced, after appeal, to surrender the shares to Asarco, it will continue to own 80% of Southern Copper - 51% through Americas Mining Corp. and 29% through Asarco.

Grupo Mexico owns Asarco, but lost management control when the U.S. mining concern filed for Chapter 11 in 2005. The Mexican parent also opposes Asarco's plan to sell itself to Vedanta Resources PLC (VED.LN).

-By Anthony Harrup, Dow Jones Newswires; (5255) 5001 5727, anthony.harrup@dowjones.com
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