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Mitsui to raise stake in Chile's Collahuasi copper mine

16th February 2018

By: Reuters

  

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TOKYO – Japanese trading house Mitsui & Co said on Friday it will reshuffle its copper assets in Chile, increasing its stake in the Collahuasi mine and selling a small stake in the Los Pelambres mine, boosting its overall copper volumes.

Mitsui said it would buy a 3.6% stake in Collahuasi from JX Nippon Mining & Metals, a unit of JXTG Holdings, taking its total stake to 11.03%. It would sell its 1.25% stake in Los Pelambres to JX Metals and trading company Marubeni.

Mitsui said the deals would boost its equity copper output volume by about 15 000 t/y to 140 000 t/y.

The move is part of its effort to optimise its portfolio by replenishing and accumulating high-quality assets, it said. Financial terms were not disclosed.

JX Metals' holding in Los Pelambres will rise to 15.79% from 15%, and Marubeni's stake will rise to 9.21% from 8.75%, according to JX and Marubeni.

JX said the transactions were aimed at concentrating its resources on its key assets. Funds from the sale will be used to reinforce its processing business.

Marubeni's purchase of an additional stake comes as it strengthens its copper platform from a long-term viewpoint, it said in a statement.

Japanese trading houses are scouting for assets as they enjoy their best profit outlook in six years, driven by higher prices for commodities from metals and coking coal to oil and natural gas.

Chilean mining company Antofagasta owns 60% of Los Pelambres, while Japanese companies, including Mitsubishi Materials and Mitsubishi, hold the rest.

Glencore and Anglo American each own 44% of Collahuasi, while 12% is held by Japanese companies including Mitsui Mining and Smelting Co.

Edited by Reuters

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