Mitsubishi Corp. Spends US$ 5.39B for Chile Cu Assets

Mitsubishi Corporation announced on Thursday the firm purchased 24.5% share in Anglo American’s Chilean copper asset holding company, Anglo American Sur S.A. for US$ 5.39 billion. Through the equity purchase, Mitsubishi Corp.’s copper interests increases from current annual 140,000 tonnes to 250,000 tonnes.

Anglo American Sur has competitive copper assets. The firm produces around 220,000 tonnes per year of copper in concentrate and ingot at Los Bronces mine, around 40,000 tonnes at El Soldado mine. The firm also makes around 140,000 tonnes of anode and Chagres smelter from concentrate from the mines.

The firm produces total around 260,000 tonnes of copper per year now. When Los Bronces mine reaches full capacity operation at around 400,000 tonnes in 2012, the firm’s annual production reaches around 440,000 tonnes.

Los Bronces mine is world class competitive copper mine in reserve and cost. The mining area is near undeveloped copper rich deposits including Los Sulfatos and San Enrique Monolito. Anglo American Sur has promising growth options.

Mitsubishi Corp. has 8.25% share in world largest Escondida copper mine and 5% share in Los Pelambres copper mine in Chile. Mitsubishi Corp. also has 25% share in iron ore miner, Compa??a Minera del Pacifico (CMP) in Chile.

World largest copper miner, Corporaci?n Nacional del Cobre de Chile (CODELCO) studies to purchase maximum 49% share in Anglo American Sur. Mitsui & Co. will offer US$ 6.75 billion loan for CODELCO’s purchase.