Mitsubishi Corporation to Acquire Additional 21.9% Stake in Quellaveco Copper Mine Project
TOKYO, Jun, 15 2018 - (JCN Newswire) - Mitsubishi Corporation (MC) is pleased to announce that it has agreed with Anglo American plc (AA) to acquire an additional 21.9% equity interest in Anglo American Quellaveco S.A. (AAQSA), which owns the Quellaveco copper mine project in Peru (Quellaveco). This investment will increase MC's total interest in AAQSA to 40%.
MC acquired a 18.1% interest in AAQSA in 2012. Subject to required regulatory approvals and AA's board approval to develop the Quellaveco project, MC will acquire an additional 21.9% equity interest for a consideration of US$500 million(1). Closing of the Transaction is expected to be within the second quarter in FY2018, and development of the project will commence later this year, with estimated first copper production in 2022.
Quellaveco is one of the world's largest undeveloped copper deposits, with high cost competitiveness and containing approximately 7.5 million tonnes (content metal basis) of copper in Ore Reserves. The Transaction is expected to increase MC's attributable copper production by approximately 120,000 tonnes per year.
Copper is widely used in electrical networks, automobile parts, and consumer electronics, and has become a material critical in supporting modern lifestyles and infrastructure. Growth in global copper demand is expected to remain steady, fueled by infrastructure and electronic network development in emerging countries, as well as growth in the global electric vehicle market centered around China and Europe.
MC's existing participation in world-class copper mining assets with high resource volumes, quality, and potential for further expansion, in light of such increasing global demand, makes copper one of the core areas in MC's resources business. Through the successful development of Quellaveco, MC will secure a highly competitive copper asset ensuring stable supply in order to respond to the long-term needs of society. MC is committed to meeting stakeholders' expectations, while achieving a balanced realization of economic, social, and environmental values for the sustainable growth of the company.
(1) The consideration will be settled upon closing by way of a primary share subscription in AAQSA. An additional contingent consideration shall be made upon the successful achievement of two ore treatment expansions, total of US$100 million.
About Mitsubishi Corporation
Mitsubishi Corporation, headquartered in Tokyo, is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. Mitsubishi Corporation's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. For more information on Mitsubishi Corporation, please visit the company's website at https://www.mitsubishicorp.com/jp/en/.
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Source: Mitsubishi Corporation
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