MMG Limited (MMG) (Stock Code 1208.HK) is pleased to announce today that MMG, together with its joint venture partners, completed the acquisition of the Las Bambas copper project in Peru from Glencore Plc (Glencore) effective as at 31 July 2014.
MMG Chief Executive Officer Andrew Michelmore marked the completion of the transaction in Peru alongside Las Bambas employees.
“The acquisition of Las Bambas is a proud and significant milestone for MMG, delivering on our growth strategy and objective to be a top three mid-tier mining company,” said Mr Michelmore.
“I’m very excited to be on the ground at Las Bambas meeting the local workforce and appreciating all the hard work that has gone into the project,” he said.
“This week’s visit has provided me with greater insight into the priorities for the project as we turn our efforts to completing the construction of the project. There is a lot of work to be done and we want to ensure the change in ownership does not impact its development,” said Mr Michelmore.
“We value the expertise of the Las Bambas team who have earned an outstanding reputation in the region. We are delighted to welcome their talent to our organisation,” he said.
On completion of the transaction, the total investment in Las Bambas by the joint venture between MMG (62.5%, operator), Guoxin International Investment Corporation Limited (GXIIC) and CITIC Metal Co., Ltd. (CITIC) was US$7.005 billion (subject to post-completion adjustments to be made between the parties).
Las Bambas will add 6.9 million tonnes of copper Ore Reserves and 10.5 million tonnes of copper Mineral Resources to MMG’s portfolio and supports MMG’s positive long-term view of copper.
“Once operational, Las Bambas will significantly increase MMG’s attributable copper sales. With Las Bambas expected to produce over 2 million tonnes of copper in concentrate in its first five years, MMG will become one of the world’s largest copper producers also offering exposure to other base metals,” said Mr Michelmore.
MMG will continue its detailed analysis of the project before providing an update on the project schedule and future capital requirements.
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