MMG Sealed Deal to Acquire Copper Mine in Southern Africa
The company plans to expand the output to up to 130,000 tons per, doubling from the current levels.
SEATTLE (Scrap Monster): MMG- the Chinese government-backed mining company controlled by state-owned China Minmetals Corp. has sealed a landmark deal to acquire a copper mine in Southern Africa. The $1.9 billion worth deal is considered as one of the biggest copper deals of the year.
According to company press release, it has agreed to acquire Canada-based Cuprous Capital Ltd., the parent company of the Khoemacau copper mine in Botswana with an enterprise value of $1.88 billion. It must be noted that the company has been hunting for copper assets for more than a year, in order to take best advantage of the rising demand situation of the metal.
Jiqing Xu, Chairman, MMG, in a statement, noted that the Khoemacau acquisition underlines the company’s confidence in copper as a commodity with a strong forward demand amidst acceleration in global energy transition.
Currently, the mine has annual capacity to produce up to 65,000 tons of copper in ore a year. The company plans to expand the output to up to 130,000 tons per, doubling from the current levels.
Apart from the payment of $1.88 billion towards the asset, MMG will also bear the expansion costs of the mine, which is estimated at around $700,000-$800,000.
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