CoTec and Battery Mineral Resources (BMR) have signed a non-binding framework agreement outlining a proposed partnership to explore ways to increase copper production at the latter’s Punitaqui mining district in Chile.
The agreement sets the stage for a strategic economic joint venture (JV), which is contingent upon further technical and economic evaluation and the negotiation of final terms.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The partnership aims to assess new methods for recovering copper from lower-grade sulphide mineralisation and mine tailings by applying technologies identified or sourced by CoTec.
Punitaqui’s existing resources, established infrastructure, permits and workforce will be combined with CoTec’s experience in sourcing technology and project development.
Under the proposed value-sharing arrangement, BMR would maintain full ownership and economic interest in existing operations and resources, based on a mutually agreed baseline.
CoTec and BMR would then share equally in the economic value and any additional copper production resulting from projects generated through the application of CoTec technologies or new developments identified.
The initial phase of the assessment will focus on metallurgical testing and a preliminary review of possible technical and economic improvements.
The analysis will target opportunities to improve copper recovery from historical and ongoing tailings, evaluate lower-grade mineralisation, and identify areas for additional growth and potential new copper production streams across the Punitaqui mining district.
CoTec and BMR’s framework agreement itself is non-binding except for provisions regarding exclusivity, confidentiality, and certain other standard terms.
CoTec is expected to fund the cost of approved third-party assessments and tests during the initial stage.
Upon completion of the evaluations, both parties anticipate negotiating definitive agreements to implement the proposed JV and pursue any identified development opportunities in the district.
CoTec CEO Julian Treger said: “Punitaqui is an attractive copper district with an established operating platform and significant growth potential beyond the current mine plan.
“We believe there are opportunities to increase copper production and unlock additional value by applying CoTec’s resource optimisation and processing solutions to existing resources, lower-grade sulphides and tailings.”
