Mitsubishi Materials (MMC) has completed the acquisition of a 30% stake in the Mantoverde copper mine in Chile in a deal valued at about $275m.
The acquisition concluded after all the closing conditions have been satisfied.
The move comes after the company signed a share subscription agreement with Mantos Copper Holding earlier this month for the acquisition of stake in Mantoverde which operates the copper mine in Chile.
To support the extraction and processing of sulphide ore as part of the Mantoverde Development Project (MVDP), MMC will take part in the construction of the building facilities which include a concentrator and a tailings dam.
Additionally, Mitsubishi Materials’ investment includes the pro-rata portion of the construction capex and adjustments for working capital since the original announcement was made.
As part of the financing for the project, Mitsubishi Materials will also offer a $60m cost overrun facility that provides incremental copper concentrates produced by the project.
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The company expects to receive about 42% of the total copper concentrate of Mantoverde copper mine, as a result, including the offtake entitlement from its ownership stake in the mine.
Mitsubishi Materials said in a statement: “MMC’s long-term strategy for the metals business, as per our medium-term management strategy, is to create a sustainable portfolio of raw materials consisting of clean copper concentrates and E-Scrap, and we will work to achieve this goal by steadily advancing the project and securing stable supply of high-quality copper concentrates with low impurities.”
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.