Pan Pacific Copper to Get Majority Share in Australian Cu Exploration

Pan Pacific Copper, which is joint copper smelter of JX Nippon Mining & Metals and Mitsui Mining & Smelting, decided to invest in copper exploration project in northeast of Australia. The firm will get 51% interest in the project from Australian mineral company by paying A$ 15 million of exploration cost for 6 years. Pan Pacific Copper has right to get up to 90% interest in the project by increasing the investment to total A$ 55 million.

Pan Pacific Copper invests in GBM Resources’ projects in Mount Isa, Queensland. The 15.8 million square meters area is expected to contain major copper and cold resources when Xstrata develops resources in neighboring area.

Pan Pacific Copper has to pay more than A$ 2 million in first 2 years of the exploration under the agreement while the firm has to pay A$ 15 million for 51% share. The firm can increase the interest up to 90% by paying A$ 1.026 million for each additional 1% share.

The firm decided to get major share in such exploration projects at cheaper cost than promising projects while such exploration projects have higher risk and longer time to get ore.

The firm’s equity copper could increase from current near 20% to more than 70% when the firm develops Chilean copper mine and conducts feasibility study for copper mine in Peru. The firm tries to improve the time table portfolio by adding exploration projects.