Japan-based Mitsubishi Materials (MMC) has agreed to acquire a 30% interest in Mantoverde copper mine and associated projects from Mantos Copper for $263m in Chile.
Located in the Atacama region of northern Chile, the Mantoverde copper mine has 2.1 million tonnes (Mt) of copper reserves and 5.7Mt of copper resources.
The mine is owned and operated by Mantoverde, which is 99.99% owned by Mantos Copper.
Under the terms of the agreement, MMC will participate in the Mantoverde Development Project (MVDP).
Mantoverde has been seeking a long-term strategic partner to co-invest in MVDP, which aims to build a concentrator and expand facilities to support the extraction and processing of sulphide ore to enable the production of copper concentrate through a $731m investment.
In a statement, MMC stated: “MMC has actively been seeking to participate in high quality copper mine projects to secure copper concentrate for its copper smelters. MVDP is expected to produce high quality copper concentrate with very low levels of impurities and deleterious materials, with relatively low operating costs leveraging existing infrastructure at the Mantoverde copper mine.
“In light of the above, MMC started to consider investing in MV, and has been in discussions with MC on the potential partnership for some time.
“As a result of these discussions, MMC has reached an agreement with MC to acquire a minority stake in MV and participate in MVDP.”
The total copper production from the Mantoverde mine is expected to be 1,700 kilotonnes
Holding an initial mine life until 2041, the Mantoverde mine’s copper production is estimated to be 1,700 kilotonnes (Kt).
MMC will also receive offtake rights for 30% (equivalent to its ownership stake) of copper concentrate produced from the mine.
For the transaction, RBC Capital Markets served as exclusive financial advisor to MMC. Allen & Overy and Morales & Besa acted as its legal advisors
