China's MMG to Acquire Las Bambas04-14 11:44 Caijing
A Chinese consortium has agreed to buy Glencore's Las Barmbas copper project in Peru for US$5.85 billion.
The deal, led by Minerals and Metals Group (MMG), a unit of state-owned China Minmetals Corp, is one of the largest mining acquisitions in recent years.
Las Barmbas which is set to become one of the largest global copper mines once in full production has 6.9million tonnes of ore reserve and 10.5 million tonnes of copper mineral resources, according to an announcement by the HK-listed MMG.
It's expected to produce more than 2million tonnes of copper in concentrate in its first five years of operation, the company said.
"This is a transformational acquisition for MMG," Chief Executive Officer Mr Andrew Michelmore said.
“We are pleased to lead this joint venture and establish a strong platform in one of the world’s most prospective mineral precincts. Our investment in this project of national importance is the first step in what we see as a long-term relationship with Peru.”
According to Glencore, the transaction is expected to close by the autumn,
subject to regulatory approval and a vote by MMG's shareholders.
China Minmetals, MMG's 74% majority investor, has already "irrevocably" backed the deal, Glencore said.
"Today's announcement demonstrates our commitment to maximizing value for our
shareholders," said Glencore Chief Executive Ivan Glasenberg.
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