13th Oct 2021 10:28
(Alliance News) - Perth-based diversified miner South32 Ltd is the main contender to acquire a 45% stake in the Sierra Gorda copper project in Atacama, Chile, the Financial Times reported late Tuesday.
According to people with knowledge of the sale process, South32 could pay as much as USD2 billion for the 45% stake, although there is no certainty that a deal will be reached.
State-backed Polish miner KGHM Polska Miedz SA currently holds a 55% operating stake in the Sierra Gorda. Of the remainder, 31.5% is owned by Tokyo-based miner and metal smelting firm Sumitoto Metal Mining Co Ltd, and 13.5% by Japanese trading firm Sumitomo Corp.
In 2020, the open-pit mine produced almost 150,000 tonnes of copper concentrate. Sierra Gorda sits at an altitude of 1,700 metres and the deposit has enough ore to support at least 20 years of mining.
https://www.ft.com/content/cd7bed0a-d332-4bc3-b3e1-35d4b9e26e4e
Shares in South32 were down 0.7% at 197.40 pence on Wednesday in London, while its Johannesburg shares were 0.7% lower at ZAR40.10.
By Dayo Laniyan; [email protected]
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