Global natural resource company Glencore has agreed to sell CSA copper mine in New South Wales, Australia, to Metals Acquisition (MAC).

The deal follows the recent decision by Australian miner IGO to scrap talks with Glencore to acquire the CSA mine.

According to the agreed terms, Glencore will receive a $1.05bn cash payment and a $50m equity stake in MAC.

Anglo-Swiss commodity firm will also receive a 1.5% net smelter return life of mine royalty.

Upon completion of the transaction, MAC will assume ownership and full operational control of the mine.

It will also sign an offtake agreement with the commodity firm for 100% of the copper concentrate produced at the mine.

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The sale forms part of the commodity firm’s strategy to simplify and align its global portfolio to focus on lower-cost, long-life assets.

Planned for completion this year, the transaction awaits the approval of MAC shareholders and regulators.

MAC CEO Mick McMullen said: “The acquisition of CSA represents a strong strategic fit for MAC. CSA also provides us with an ideal cornerstone asset with which to establish a high-quality, mid-tier base metals portfolio.

“We believe that copper has favourable fundamentals that will continue to support an elevated copper price.

“Copper is expected to play a key role in the global energy transition ‘megatrend’, with approximately one million tonnes per annum of new supply required from 2024 onwards in order to meet the surging demand forecast.

“With few new projects globally in the pipeline, increasing permitting issues and jurisdictional risk, and declining copper grades across the industry, we believe that there are significant challenges ahead to close the projected supply deficit.”

Starting production in 1967, the CSA high-grade, long-life, underground mine has a 50,000tpa copper production capacity.