Japanese base metals conglomerate Mitsubishi Materials Corporation (MMC) has completed the transaction for a 30pc stake in Chile’s Mantoverde mine, owned and operated by Mantos Copper.
According to a news release by MMC on Feb 12, the company has formally acquired the minority interest for a valuation of about $275mn. Apart from this, MMC will also offer Mantos $60mn as credit overrun to cover the potential costs of construction for the mining facilities. In doing so, the former will be entitled to around 42pc offtake from the mine’s production.
The Mantoverde mine in the Atacama region of Chile is estimated to hold about 5.7mn mt of contained copper and will produce about 1.7mn mt of copper metal over its 18-year mine life. The mine is expected to begin operations in 2023.