MMG Sealed Deal to Acquire Copper Mine in Southern Africa
Copper | 2023-11-22 11:16:45
The company plans to expand the output to up to 130,000 tons per, doubling from the current levels.
By Paul Ploumis
SEATTLE (Scrap Monster): MMG- the Chinese government-backed mining company controlled by state-owned China Minmetals Corp. has sealed a landmark deal to acquire a copper mine in Southern Africa. The $1.9 billion worth deal is considered as one of the biggest copper deals of the year.
According to company press release, it has agreed to acquire Canada-based Cuprous Capital Ltd., the parent company of the Khoemacau copper mine in Botswana with an enterprise value of $1.88 billion. It must be noted that the company has been hunting for copper assets for more than a year, in order to take best advantage of the rising demand situation of the metal.
Jiqing Xu, Chairman, MMG, in a statement, noted that the Khoemacau acquisition underlines the company’s confidence in copper as a commodity with a strong forward demand amidst acceleration in global energy transition.
Currently, the mine has annual capacity to produce up to 65,000 tons of copper in ore a year. The company plans to expand the output to up to 130,000 tons per, doubling from the current levels.
Apart from the payment of $1.88 billion towards the asset, MMG will also bear the expansion costs of the mine, which is estimated at around $700,000-$800,000.
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