US-based blank cheque company Metals Acquisition (MAC) announced that the Australian Foreign Investment Review Board (FIRB) has approved its previously announced acquisition of the CSA copper mine in Australia from Glencore.
The deal was announced in March 2022. Its closing was subject to FIRB’s no objection among other conditions.
Metals Acquisition CEO Mick McMullen said: “MAC’s status as a foreign investor under Australian law, together with the nature of the assets being acquired from Glencore, necessitated the acquisition of CSA being subject to regulatory review in accordance with the Australian Foreign Acquisitions and Takeovers Act 1975 (Cth).
“The Treasurer of the Commonwealth of Australia, acting through the Australian government’s FIRB organization, has confirmed that there is No Objections to the transfer of CSA and associated land so that it will be under the control and ownership of MAC.”
Upon the completion of the deal, Glencore is to be paid cash of $1.05bn, $50m worth equity stake in MAC, and a 1.5% net smelter return life of mine royalty.
The CSA copper mine is a producing underground asset situated in the Tier 1 mining region of western New South Wales.
The Australian copper mine has been producing since 1967.
At the time of announcing the deal, Glencore said that the divestiture of the CSA mine is in line with delivering its strategy of streamlining and aligning its global portfolio of more than 150 operating sites to concentrate on lower-cost, long-life assets.
As per the terms of the deal, MAC and Glencore will enter into an offtake agreement for 100% of the copper concentrate produced at the copper mine. The special purpose acquisition company will also take over ownership and complete operational control of the asset.
