07 Feb Mantos Copper Announces the Sale of a Minority Interest in the Mantoverde copper mine to Mitsubishi Materials Corporation
Mantos Copper Holding (“Mantos Copper”) is pleased to announce that Mitsubishi Materials Corporation (“MMC”) has agreed to acquire a 30% interest in the Mantoverde copper mine (“Mantoverde”). The consideration payable by MMC consists of (i) a US$263 million equity subscription in Mantoverde SA; and (ii) a US$20 million cash payment upon achievement of certain milestones. The investment by MMC will be utilised to partially fund the Mantoverde Development Project (“MVDP”).
MVDP is a permitted, construction-ready brownfield project in the Atacama region of Chile that involves the building of a 34 ktpd copper concentrator and associated facilities to process ore from the sulphide deposit at Mantoverde. The project will extend the life of Mantoverde to at least 2041 whilst significantly reducing operating costs. Upon completion of the project, Mantoverde will produce an average of 105 ktpa of copper during the first 10 years of the project, comprising 29 ktpa of copper cathode and 76 ktpa of copper in concentrate. The capital cost of the project is US$731 million, representing a highly competitive capital efficiency of US$9,625 per annual ton of copper produced, due to extensive existing infrastructure (including its own desalination plant) and the relatively high grade of the copper deposit (average of 0.78% Cu equivalent for the sulphide ore during the first 10 years). Mantoverde is a tier one deposit, with total copper resources of 5.7 Mt of contained copper in an attractive mining jurisdiction.
“This transaction represents an important milestone for Mantos Copper and for the advancement of the Mantoverde sulphide development project. I am thrilled to welcome Mitsubishi Materials Corporation as an investor and a partner in this next phase of growth at Mantoverde. The development project will both expand and extend Mantoverde and bring material benefit to all of its stakeholders, including employees, contractors, suppliers, customers and local communities” commented John MacKenzie, Executive Chairman of Mantos Copper. PRESS RELEASE / COMUNICADO EXTERNO
Dirección: Panamericana Norte Km 1405, s/n – Mantos Blancos: Nicolás Tirado 377, Antofagasta – Mantoverde: Av. Andrés Bello 660, Chañaral www.mantoscopper.com