Mitsubishi Materials Corporation (MMC) has agreed to acquire a 30% stake in the producing Mantoverde copper mine in Chile from Mantos Copper in a deal worth up to $283 million, as per the latest mining acquisition news.

The Japanese company has also agreed to take part in the Mantoverde Development Project (MVDP) at the Chilean copper mine, which aims to construct a concentrator and expand facilities to underpin the extraction and processing of sulphide ore. The Mantoverde Development Project, through a $731 million investment, will enable the production of copper concentrate.

Located in the Atacama Region in northern Chile, the Mantoverde copper project is said to have been in steady operation since it started producing copper cathode using leaching and solvent extraction and electrowinning (SX-EW) in 1995.

Mitsubishi Materials said that it has been actively looking to take part in high-quality copper mine projects to secure supply of copper concentrate for its copper smelters.

The Japanese company stated: “MVDP is expected to produce high quality copper concentrate with very low levels of impurities and deleterious materials, with relatively low operating costs leveraging existing infrastructure at the Mantoverde copper mine. In light of the above, MMC started to consider investing in MV, and has been in discussions with MC on the potential partnership for some time.”

As per the terms of the deal, Mitsubishi Materials Corporation will pay $263 million at the time of its closing. The consideration includes a $184 million earn-in contribution, a $79 million matching capital contribution, and $20 million if the Mantoverde copper mine gets all the required permits for expanding its tailings storage facility’s capacity substantially beyond the currently permitted capacity.

Mitsubishi Materials Corporation will stand to get offtake rights for 30% of copper produced from the Mantoverde copper mine and will get the produced materials in the form of copper concentrate.

The closing of the deal is subject to receipt of approvals and the meeting of other customary conditions, and also the successful execution of a complete financing package for Mantoverde Development Project. Following all these, the deal is likely to be closed by the end of October 2020.

  Chile, Mantos Copper, Mantoverde copper mine, Mantoverde Development Project, Mitsubishi Materials Corporation