Mitsui to buy additional stake in Collahuasi Copper Mine in Chile

Japanese conglomerate Mitsui has agreed to buy an additional stake of 3.60% in the Collahuasi Copper Mine in Chile from JX Nippon Mining & Metals for an undisclosed price.

The transaction will increase the overall stake of Mitsui in the Collahuasi Copper Mine to 11.03%.

Located nearly 200km southeast of Iquique in northern Chile, the Collahuasi Copper Mine had reported a 2017 production of 524,000 tons of copper.

Mitsui calls it to be a world-class copper mine having abundant reserves and resources. While the reserves held by the Chilean copper mine are 28 million tons, its resources are 78 million tons as estimated at the end of 2016.

Mitsui has held concessions in the Collahuasi Copper Mine for more than 20 years from 1996 by leading a Japanese consortium of investors. Currently, Anglo American and Glencore are main shareholders in the Collahuasi Copper Mine with each having a stake of 44%.

Mitsui believes that the Collahuasi Copper Mine is an excellent asset, which through future production expansions can further improve its business value.

The Japanese conglomerate has made another deal, of selling its entire stake of 1.25% in the Los Pelambres Copper Mine, also located in Chile, for an undisclosed price. JX Nippon Mining & Metals and Marubeni have agreed to buy 0.79% and 0.46%, respectively of Mitsui’s stake in the Chilean copper mine, located nearly 200 km north of Santiago in Central Chile.

Production at the Los Pelambres Copper Mine has been reported to be 524,000 tons for 2017. Mitsui, which acquired a stake in this Chilean copper mine in 1997, says that the sale of it is a part of its strategic asset recycling.

Company announcement. Photo courtesy of Stuart Miles at FreeDigitalPhotos.net.

Following the transactions in the two copper mines in Chile, Mitsui copper production volume is likely to increase by nearly 15,000 tons per year on top of about 125,000 tons in the year ended March 2017.

The Japanese conglomerate plans to continuously streamline its portfolio by restoring and gathering high-quality assets from a medium- to long-term perspective.

The Japanese trading company stated: “Mitsui has identified the Mineral & Metal Resources and Energy segments as one of the core pillars in its Medium-term Management Plan, and strives to build a robust profit base and to reinforce its existing business.

“Mineral & metal resources are core materials for industry and will remain an important business area over the medium- to long-term future. While contributing to “nation development” of resource-producing countries, Mitsui will also contribute to drive the development of the world economy by ensuring stable supplies of competitive resources.”