After a year long search for a buyer, one of the largest copper producers in the world has sold its smallest asset in Chile.
BHP Billiton announced this week that it has entered into an agreement to sell its Cerro Colorado Mine to Australian based EMR Capital Advisers, in a deal valued at around $320 million.
The deal is expected to close in the fourth quarter of 2018 and comes at a time where BHP is looking to focus its portfolio on “major operations.”
The deal will see $230 million paid in cash, with $40 million in proceeds from copper stocks and a further $50 million dependent on the price fluctuation of copper.
“We see this mine as having a very long-term future, so we will work very closely with the workforce, the community and the government in ensuring this mine is successful,” EMR Capital Chief Executive Officer Jason Chang told Bloomberg. “We want to improve the mine, including increasing production.”
Cerro Colorado is located in the Atacama Desert in northern Chile and represents one of two copper mining operations of BHP’s Pampa Norte division. In fiscal year 2017, Cerro Colorado produced 65,000 tonnes of copper cathode.