A globally integrated business enterprise has agreed to increase its stake in a Peruvian copper project in a multimillion dollar deal.
Anglo American announced in a statement this week that it has entered into an agreement with Mitsubishis Corporation ti increase Mitsubishi’s equity interest in the company’s Quellaveco Copper project.
In a deal valued at $600 million, Mitsubishi’s existing 18.1% in Anglo American Quellaveco S.A (AAQSA) will increase to 40%, with Anglo American retaining 60%.
When broken down, the $600 million will be comprised of $500 million upon closing of the transaction, $50 million upon total ore treatment rates at Quellaveco reaching at least 150 thousand tonnes per day and $50 million upon total ore treatment rates at Quellaveco reaching at least 180 thousand tonnes per day.
Mark Cutifani, Chief Executive of Anglo American, said: “The successful syndication of a 21.9% interest in Quellaveco confirms the world-class quality of our copper asset in Peru and aligns with our disciplined approach to how we allocate capital. We are pleased to be able to extend our longstanding partnership with Mitsubishi and look forward to its ongoing contribution and strong support for the development of Quellaveco.”
The transaction sees the total valuation of Quellaveco reach $2.74 billion.