Mubadala and Trafigura Group have completed the creation of a 50/50 joint-venture (JV) company to invest in the base metals mining sector, including copper and zinc.
Upon creating the new JV company, Mubadala, owned by the Government of Abu Dhabi, has now acquired a 50% share in Trafigura's Minas de Aguas Teñidas (MATSA) mining operations.
The Agua Teñidas, Sotiel and Magdalena mines in southern Spain, which produce copper, zinc and lead concentrates, are owned by MATSA.
According to Trafigura, the new company will enable further expansion and investments in other base metal mining assets across the globe by exploiting the experience developed with MATSA.
Mubadala Technology and Industry CEO Ahmed Yahia Al Idrissi said: "MATSA has a strong competitive position and excellent expansion potential, with capacity expected to more than double over the next two years.
"Investing in MATSA is a key step in growing and diversifying our existing metals and mining portfolio."
When the announcement was made in June, Trafigura said that a two-year investment and expansion plan by the company for MATSA is nearing completion.
The plan included establishment of a new treatment plant, which has doubled processing capacity for 4.4Mt a year.
The JV will see the continuation of day-to-day operations at MATSA normally, including existing terms and conditions for employees, contractors and suppliers.
Image: MATSA owns the Agua Teñidas, Sotiel and Magdalena mines in southern Spain. Photo: © Mubadala Development Company PJSC.