Mining Frontier
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
    • Aluminium
    • COAL
    • COPPER
    • DIAMONDS
    • GOLD
    • IRON ORE AND MANGANESE
    • NICKEL
    • NIOBIUM
    • PHOSPHATES
    • PLATINUM
    • STEEL
  • Projects
  • Events & Conferences
  • Contact US
  • More
    • Newsletter Archive
No Result
View All Result
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
    • Aluminium
    • COAL
    • COPPER
    • DIAMONDS
    • GOLD
    • IRON ORE AND MANGANESE
    • NICKEL
    • NIOBIUM
    • PHOSPHATES
    • PLATINUM
    • STEEL
  • Projects
  • Events & Conferences
  • Contact US
  • More
    • Newsletter Archive
No Result
View All Result
Mining Frontier
No Result
View All Result
Home Latin America

Lundin Mining to buy Freeport’s 80% stake in Chilean copper mine for $1.8bn

December 24, 2014
in Latin America, News

Note* - All images used are for editorial and illustrative purposes only and may not originate from the original news provider or associated company.

Canada-based Lundin Mining has signed a deal to buy Freeport-McMoRan’s 80% stake in the Candelaria / Ojos del Salado copper mining operations and related assets in Chile for $1.8bn.

 

The purchase includes a large open pit mine, three underground mines, two concentrators and a deep-water port.

 

In addition to paying $1.8bn in cash, Lundin may be required to pay $200m over the next five years if the average copper price exceeds $4 a pound. The acquisition of the Chilean mine will allow Lundin to increase copper production to around 124,800t a year, and also enter into South American markets.

 

Lundin Mining CEO and president Paul Conibear said: “The acquisition of Candelaria is a unique opportunity to acquire a large-scale, high-quality copper operation with strong cashflows in an excellent mining jurisdiction.

 

“Candelaria is a well run, renowned asset with superb infrastructure and an experienced operating team.

 

“This transaction further enhances our company by providing increased operational and geographic diversification, using a balanced financing structure which allows us to maintain a strong balance sheet going forward.”

 

Lundin plans to finance the deal through $1bn in new senior-secured debt, $600m from the sale of shares and $648m from the sale of 68% of Candelaria’s gold and silver production to Franco-Nevada.

 

The Candelaria mine is expected to produce 156,000t of copper, 97,000oz of gold and 1.9 million ounces of silver this year, with a further 14 years of mine life and a possibility of an extension to it.

 

Japan’s Sumitomo will continue to own the remaining 20% in the mine.

 

Proceeds from the sale of the Chilean copper operations will allow Freeport to reduce its debt, which is currently around $20bn. The company expects to gain $450m after-tax from the transaction.

 

Freeport said in a statement: “This transaction represents another important step in our on-going debt reduction plan and follows the completion of our $3.1bn sale of Eagle Ford shale assets in June.”

 

In July, the company announced plans to reduce its debt to $12bn by 2016 by selling onshore energy assets worth $4bn to $5bn, Bloomberg reported.

Previous Post

US court upholds 20-year ban on uranium mining near Grand Canyon

Next Post

Chile Supreme Court halts Goldcorp’s El Morro mine development

Related Posts

US Eyes Rubaya Mine in Congo
News

US Eyes Rubaya Mine in Congo for Coltan Reserves

June 30, 2025
HD Hyundai Construction
News

HD Hyundai Construction Equipment Expands Mining Presence

June 27, 2025
South Africa Revives Mining Endeavors
News

To Keep Pace Globally, South Africa Revives Mining Endeavors

May 19, 2025
Mining Projects in America
News

Mining Projects in America Getting the Executive Order Push

May 19, 2025
Coal Exploration Programme
News

Coal Exploration Programme Gets a Go Ahead in Canada

May 19, 2025
Mining StartUps Looking for Better Europe Avenues
News

Mining StartUps Looking for Better Europe Avenues

May 19, 2025
Next Post

Chile Supreme Court halts Goldcorp’s El Morro mine development

No Result
View All Result

Recent Posts

  • Automated Solutions in Mining Equipment Driving the Change
  • Absolute Visibility of Digital Transformation in Mining
  • 2025 Mining Equipment Trends – Carrying Legacy to Modernity
  • Ore Extraction Processes Getting AI-Powered Robot Support
  • A Deep Dive into Machinery Maintenance in Mining in Canada

System

  • Search
  • Sitemap
  • Feed

Resources

  • Contact US
  • Download Mediapack
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
  • Projects
  • Events & Conferences
  • Contact US
  • More

© 2019 Copyright Valuemediaservices All rights reserved.

No Result
View All Result
  • Home
  • News
  • Press Releases
  • Market Reports
  • Sectors
    • Aluminium
    • COAL
    • COPPER
    • DIAMONDS
    • GOLD
    • IRON ORE AND MANGANESE
    • NICKEL
    • NIOBIUM
    • PHOSPHATES
    • PLATINUM
    • STEEL
  • Projects
  • Events & Conferences
  • Contact US
  • More
    • Newsletter Archive

© 2019 Copyright Valuemediaservices All rights reserved.

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In