Glencore to buy majority stake in Peruvian copper miner Marcobre for $475 mn
18 Jul 2011
Swiss commodity and resources supplier Glencore International is planning to buy a 70-per cent stake in Marcobre SAC, the owner of the Marcona Copper property and the Mina Justa exploration and development project in Peru, for $475 million.
Under the deal that expands its portfolio in the South American country to include copper, the Switss company will buy the 70-per cent stake in Marcobre from CST Mining Group.
Hong Kong-listed CST Mining Group had last month sold its CST Resources unit to Glencore. CST Resources indirectly owns 70 per cent of Marcobre.
The Marcona Copper Project covering 32,889 hectares located within Nazca Province in the southern coastal plain area of Peru has five prospects, the Mina Justa Prospect, the Achupallas Prospect, the Miramar Prospect, the Clavelinas Prospect and the La Apreciada Prospect.
The Mina Justa Prospect is currently the under development and has resource of 413.3 million tonnes with 0.79 per cent copper.
"Mina Justa would ideally complement Glencore's existing polymetallic mining operations in Peru, and add significant value to our worldwide group of copper mining assets," said Daniel Mate, co-head of Glencore's zinc, lead and copper division.
The company, which raised $11 billion through an initial public offer in London in May 2011, already owns and operates the Iscaycruz and Yauliyacu zinc, lead and silver mines in Peru's Central Highlands.
Glencore has copper assets also in Kazakhstan, the Philippines, Australia, Zambia, Argentina and Congo.