In November 1988, Warburg Pincus led the recapitalization of Magma, one of the largest copper producers in the United States. The Warburg Pincus financing allowed Magma to repurchase the interests of its two largest shareholders, Newmont Mining Corporation and Consolidated Gold Fields. Following the recapitalization and a complete change in company management, Magma reduced its costs of production from in excess of $0.80 per pound to less than $0.60 per pound and increased its production from 400 million pounds to 700 million pounds per year. In early 1996, Magma was acquired by The Broken Hill Proprietary Company Limited, the largest mining company in Australia, and Warburg Pincus sold its position.

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