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Mitsubishi Corp. and Anglo American reach final investment decision over Quellaveco copper mine

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Global Mining Review,

Mitsubishi Corp. (MC) has announced that it has reached a final investment decision with Anglo American plc for the development of the Quellaveco copper mine project in Peru.

Quellaveco is being developed by Anglo American Quellaveco S.A. (AAQSA), a joint venture (JV) owned by MC and AA. MC has agreed with AA to acquire an additional 21.9% equity interest in AAQSA, thereby increasing the proportion of its total interest in AAQSA to 40%*.

Development of the project will commence once the transaction closes in August 2018, with the start of copper production slated for 2022. Development is expected to carry a capital cost of US$5.0 to US$5.3 billion and MC will fund its equity pro-rata portion of 40%.

Quellaveco, one of the world’s largest undeveloped copper deposits, contains approximately 7.5 million t (content metal basis) of copper in Ore Reserves and is highly cost competitive.

This transaction is expected to increase MC’s attributable copper production by approximately 120 000 tpy, which is equivalent to 50% of MC’s existing attributable copper production.

Growth in global copper demand is expected to remain steady, fuelled by the development of power networks and other infrastructure in emerging countries and by growth in the global electric vehicle market centered around China and Europe.

*MC will acquire an additional 21.9% equity interest for a consideration of US$500 million. An additional contingent consideration shall be made upon the successful achievement of two ore treatment expansions, for a total of US$100 million. MC will increase its total interest in AAQSA to 40% by way of a primary share subscription.

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Anglo American news Copper mining news