Abu Dhabi’s investment company Mubadala and Swiss oil-to-metals trader Trafigura Beheer have signed an agreement to create a 50/50 joint-venture company to invest in the base metals mining sector, including copper and zinc.
Under the agreement, Mubadala will acquire a 50% interest in Trafigura’s Minas de Aguas Teñidas (MATSA) mining operations located in Andalusia, Spain.
MATSA owns the Agua Teñidas, Sotiel and Magdalena mines in southern Spain, which produce copper, zinc and lead concentrates.
Mubadala Technology and Industry chief executive officer 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."
Trafigura is close to completing a two-year investment and expansion plan for MATSA which included a new treatment plant.
The plant has an increased annual processing capacity to 4.4 million tonnes a year.
Trafigura CEO Jeremy Weir said: "We are identifying new opportunities and investing thoughtfully together in ways that complement our existing portfolio."
According to Trafigura, day-to-day operations at MATSA will continue as usual under the new JV.
The latest agreement is subject to approvals by relevant regulatory authorities.
The Trafigura Group is owned by 600 of its 5,300 employees who work in 36 countries worldwide.