View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 10, 2020updated 25 Oct 2021 11:48am

Mitsubishi to acquire 30% stake in Chile’s Mantoverde copper mine

Japan-based Mitsubishi Materials Corporation (MMC) has signed an agreement to acquire a 30% interest in Mantos Copper’s Mantoverde copper mine and associated projects in Chile for $263m from Mantos Copper.

Japan-based Mitsubishi Materials Corporation (MMC ) has signed an agreement to acquire a 30% interest in Mantos Copper ’s Mantoverde copper mine and associated projects in Chile for $263m from Mantos Copper .

The Mantoverde copper mine is located in the Atacama region of northern Chile. It has 2.1 million tonnes (Mt) of copper reserves and 5.7Mt of copper resources.

In 2015, Mantos Copper, owned by a consortium led by Audley Capital and Orion Mine Finance, acquired Mantoverde and Mantos Blancos mines from Anglo American for $300m.

Mitsubishi Materials Corporation has actively been seeking to participate in high-quality copper projects to secure concentrate for its copper smelters as demand for the industrial metal is expected to rise in the coming years.

As a long-term partner to co-invest in the Mantoverde Development Project (MVDP), Mantoverdem plans to spend $731m to expand facilities and build a concentrator to extract and process sulphide ore.

With a mine life of until 2041, total copper production from the Mantoverde mine is expected to be 1,700 kilotonnes (Kt) throughout its life.

The open-pit mine is expected to become operational in 2023.

Mantos board chairman John MacKenzie was quoted by Reuters as saying: “This transaction is a step forward in Mantos Copper ’s strategy to expand and extend the life of our high-quality copper assets while lowering its position in the cost curve.”

Under the deal, MMC will also receive offtake rights for 30% (equivalent to its ownership stake) of copper concentrate produced from the mine.

Chile is one of the world’s largest copper producers, which meets more than 30% of the global demand for the metal.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Mining Technology