Mitsubishi Materials Corporation has acquired a 30pc stake in the Mantoverde copper mine in northern Chile from Mantos Copper Holding.
The copper mine owned by Mantoverde S.A. (MVDP), a subsidiary of Mantos Copper, has been actively seeking investment partners to help develop the Mantoverde Development Project, which will consist of a concentrator and expand existing facilities so that they can extract and process sulphide ore. The development is expected to cost $731mn.
MVDP is expected to produce high-quality copper concentrate that will have low levels of impurities and not contain many harmful materials. Additionally, low operating costs and existing infrastructure attracted Mitsubishi Materials, which had been considering the project for some time.
Mitsubishi Materials will contribute $263mn at closing, which includes $184mn earn-in contribution and a $79mn matching capital contribution. The agreement also includes a provision for an additional $20mn investment from Mistubishi if more permits are secured by MVDP due to the potential of additional copper resources being found once the project expands.