Anglo sells part of its interest in Quellaveco to Mitsubishi
17 June 2018
Anglo American announced on 14 June that it has agreed to sell 21.9% of its share in Quellaveco in the Moquegua region for US$600 million to Mitsubishi. This will bring up the Japaneses company’s participation to 40%, with Anglo holding on to the remaining 60%.
Completion of the deal is due to take place in the autumn, subject to conditions being met. Mitsubishi has hitherto held an 18.1% share in the project.
Of the US$600 million, US$500 million will be paid on the deal being signed, US$50 million when production at Quellaveco reaches 150,000 tonnes a day and the final US$50 million when output hits 180,000 tonnes a day. The mine is expected to begin production in 2022.
Anglo American was hard hit by the decline in copper prices in recent years. Although it has owned Quellaveco for the last 20 years, it has failed to develop the mine which is forecast to cost US$5.5 billion. The project sparked protests from surrounding communities, but Martín Vizcarra, when president of Moquegua region, managed to broker a deal between the communities and the company.
With prices of copper rising on world markets, interest in investing in Peruvian mines is increasing.