Australian copper mining company Aditya Birla Minerals has signed an agreement to sell Lighthouse Minerals all of the shares in Birla Mt Gordon (BMG), which owns the Mt Gordon copper operation in Queensland.
Located in north-west Queensland, 120km north of Mt Isa, the Mt Gordon copper operation has been placed under care and maintenance since April 2013.
Aditya Birla Minerals managing director Neel Patnaik said that the transaction reflects the efforts undertaken by the company, BMG and its employees.
Under the agreement, Lighthouse Minerals will pay A$5m ($3.58m) to Aditya Birla on completion of the transaction, making a further cash payment of A$10m ($7.17m).
According to Aditya Birla, completion of the Mt Gordon sale will result in an increase in unencumbered cash to the company including by way of return of $41.7m worth of environmental and performance bonds.
Hindalco Industries, which owns 51% of Aditya Birla, has agreed to terminate the existing agreement effective on completion of the transaction.
Following the sale, Aditya Birla said it will continue to operate the Birla Nifty copper mine and plans to review the Birla Maroochydore copper project technically, as part of the strategic review process.
The deal is subject to certain customary conditions.
Aditya Birla Minerals focuses on copper production and exploration.