Mit­subishi to ac­quire a 21.9% stake

The Mercury - - COMPANIES -

MIN­ING firm An­glo Amer­i­can said yes­ter­day that it had agreed to sell to Ja­pan’s Mit­subishi a 21.9 per­cent stake in the Quellaveco cop­per project in Peru for $600 mil­lion (R7.98 bil­lion). Quellaveco is one of the world’s largest un­de­vel­oped cop­per de­posits, with ore re­serves es­ti­mated at 1.3 bil­lion tons, con­tain­ing 7.5 mil­lion tons of cop­per. Quellaveco has a re­serve life of 30 years. An­glo in­di­cated ear­lier this year that it was look­ing for a part­ner to share the bur­den of costs. Mark Cu­ti­fani, the chief ex­ec­u­tive of An­glo Amer­i­can, said: “The suc­cess­ful syndication of a 21.9 per­cent in­ter­est in Quellaveco con­firms the world-class qual­ity of our cop­per as­set in Peru and aligns with our dis­ci­plined ap­proach to how we al­lo­cate cap­i­tal.” Mit­subishi al­ready holds an 18.1 per­cent in­ter­est in An­glo Amer­i­can Quellaveco which, with the deal, will be hiked to 40 per­cent, while An­glo Amer­i­can will re­tain 60 per­cent. The project had an im­plied full value of $2.74bn, An­glo said. The deal was ex­pected to be fi­nalised in the third quar­ter of 2018 and was re­quired to gain reg­u­la­tory ap­provals, ap­proval by Mit­subishi’s board and ap­proval to de­velop the Quellaveco project by An­glo Amer­i­can’s board. An­glo Amer­i­can’s share price fell 0.06 per­cent to close at R318.10. – Philippa Larkin


M&R has ad­vised its share­hold­ers not to ac­cept the Aton of­fer be­fore the share­holder meet­ing.

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