Mitsubishi to acquire a 21.9% stake
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.