SA mining giant Anglo American said on Thursday it had agreed to buy the Chilean copper interests of US ExxonMobil for $1,3-billion (1,4-billion euros) cash to boost its base metals operations.
In a statement issued here, Anglo American said it would buy 100% of Compania Minera Disputada de Las Condes (CMD), which owns the Los Bronces and El Soldado mines and the Chagres smelter.
Last year the Chilean business produced 251 900 tonnes of copper. Anglo American said that the deal, which will be funded with existing resources, was expected to be completed by June.
The acquisition of Disputada, a proven long life, low cost, copper business, constitutes a major strategic strengthening of our base metals portfolio,” said chief executive Tony Trahar.
“It offers attractive exploration and growth prospects, synergies with our existing operations and reinforces our commitment to Chile and the region.
The Disputada mines are an excellent addition to Anglo American’s portfolio of world class mining and natural resource assets.”
On top of the purchase price, ExxonMobil will be entitled to extra payments for three and a half years if copper prices exceed certain agreed levels.
Anglo American shares were trading 0,4% higher at 1,069 pence here shortly after news of the deal, on a market 0,8% firmer overall. – AFP