Welcome!

News Feed Item

MMG to acquire Las Bambas

HONG KONG, April 14, 2014 /PRNewswire/ -- MMG Limited (MMG) (HK.1208) today announced that, through a joint venture with a wholly owned subsidiary of Guoxin International Investment Corporation Limited, a financial investment company registered in Hong Kong (GXIIC), and CITIC Metal Co., Ltd. (CITIC), it has entered into a Share Purchase Agreement (SPA) with GlencoreXstrata to acquire the Las Bambas copper project in Peru for US$5.85 billion.[1]



Unique opportunity to acquire a world-class copper asset with prospective, near mine exploration opportunities


  • Large, long-life copper development project located in the Apurimac region of Peru
  • Advanced stage construction project, close to production
  • Set to become one of the largest global copper mines once in full production
  • 6.9 million tonne copper Ore Reserve, 10.5 million tonne copper Mineral Resource [2]
  • Expected to produce in excess of 2 million tonnes of copper in concentrate in its first five years of operation
  • Prospective, near mine exploration opportunities

Powerful consortium – led by MMG

  • MMG-led joint venture: MMG (62.5%, operator), GXIIC (22.5%) and CITIC (15.0%)
  • Leverages MMG's expertise as an operator of large, open-pit mines
  • Transaction supported by MMG's majority shareholder China Minmetals
  • Transaction and project capital cost fully funded using a combination of equity and long-term debt to be arranged through a Chinese banking syndicate

Transformational acquisition that delivers on MMG's growth strategy and vision

  • Creates long-term value for all our stakeholders
  • Supports MMG's positive long-term view of copper
  • Significantly increases attributable copper production and reserves
  • Establishes strong platform in highly prospective South American mining region



"This is a transformational acquisition for MMG," MMG Chief Executive Officer Mr Andrew Michelmore said.

"We are pleased to lead this joint venture and establish a strong platform in one of the world's most prospective mineral precincts. Our investment in this project of national importance is the first step in what we see as a long-term relationship with Peru."

"The addition of Las Bambas to MMG's international portfolio delivers on our growth strategy and vision – to build a global diversified minerals and metals company and create opportunities for all stakeholders – including our shareholders, employees and communities," he said.

"This acquisition is consistent with China Minmetals' vision for MMG as its international investment platform for base metals projects," Mr Michelmore said.

"MMG has the ability to add value to the asset through its operating strength, progressive leadership, commitment to world-class standards and unique partnership with its major shareholder."

Transaction details

The transaction consideration and the remaining project capital costs are to be fully funded using a combination of equity and long-term debt facilities from a banking syndicate to be arranged by China Development Bank (CDB).

The SPA is subject to customary regulatory approvals from the People's Republic of China and Peru, and the approval of MMG shareholders. A transaction circular together with a notice of an extraordinary general meeting to approve the transaction is expected to be dispatched to MMG's shareholders on or before 30 June 2014. MMG's majority shareholder, CMN, has irrevocably committed to vote in favour of the transaction.

"China Minmetals is proud to be supporting MMG in the development of this significant project," China Minmetals Corporation President Mr Zhou Zhongshu said.

"The acquisition of Las Bambas is an important milestone for outbound Chinese investment in the global resources industry and also for our partners GXIIC and CITIC," he said.

MMG anticipates that the transaction will be completed in the third quarter 2014.

Las Bambas

Las Bambas, located in Cotabambas, Apurimac Region, Peru is one of the world's largest copper projects under construction with a 10.5 million tonne copper Mineral Resource (0.62% Cu grade) and 6.9 million tonne copper Ore Reserve (0.73% Cu grade).[3] Las Bambas is expected to operate for over 20 years with upside potential from associated unexplored tenements.

"Las Bambas is expected to produce in excess of 2 million tonnes of copper in concentrate in its first five years of operation," Mr Michelmore said.

"We also believe there are opportunities to extend the existing resource and mine life as a significant proportion of the licence area is currently unexplored."

After an extensive due diligence process, MMG will provide an update on the project schedule and future capital expenditure requirements upon transaction completion.

The project has an excellent development team in place and we value their experiences and knowledge of the project," Mr Michelmore said.

"Our goal is to effect a smooth transition of ownership without a disruption to project development, and we look forward to working closely with the existing team to bring Las Bambas into production," he said.

The development of this world-class asset will deliver material benefits through the payment of taxes and royalties, training and employment, contract and supply opportunities and social investment over its operating life.

"Over the past two years of construction, Las Bambas has been an important contributor and employer to the local region and economy. We will seek to maintain and strengthen this relationship in the coming years," said Mr Michelmore.

The joint venture partners will assume responsibility for project capital expenditure from 1 January 2014.

MMG Limited

MMG is a leading international miner, listed on the Hong Kong Stock Exchange (HK.1208) with operations in Australia, Africa and Asia. As one of 21 members of the International Council on Mining and Metals (ICMM), MMG is committed to operating to world-class standards in safety, health, environment and community management.

MMG will host a teleconference at 9.30am Hong Kong time on Monday 14 April 2014. For further details please contact Investor Relations or Media Relations.

Lead joint financial advisers to MMG on behalf of the JV consortium are Citigroup and Bank of America Merrill Lynch supported by financing advisors BOCI Asia Limited and ICBC International Capital Limited. MMG's legal advisors are White & Case, Dentons and Rodrigo, Elias & Medrana. MMG's major shareholder China Minmetals Non-ferrous Metals Co. Ltd, was advised by Deutsche Bank.


Media Relations

Kathleen Kawecki
T +(61) 3 9288 0996 / (61) 400 481 868
[email protected]


Investor Relations

Colette Campbell
M +(61) 422 963 652
[email protected]


Peru

Bernardo Oliart
Apoyo Communications
T +(511) 205-3900 x. 945
[email protected]


Maggie Qin
M +(61) 411 465 468
[email protected]  

North America

Ian Hamilton
DFH Public Affairs
T +1-(416) 206-0118 x.222 / +1-(905) 399-6591
[email protected]    



China

Christine Chan
T +852 2801 6090 / M +852 6173 9039
E [email protected]   




[1] Including the payment of intragroup loans.

[2] GlencoreXstrata Reserves and Resources Statement as at 31 December 2013.

[3] GlencoreXstrata Reserves and Resources Statement as at 31 December 2013.




More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
"This is specifically designed to accommodate some of the needs for high availability and failover in a network managed system for the major Korean corporations," stated Thomas Masters, Managing Director at InfranicsUSA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
"We analyze the video streaming experience. We are gathering the user behavior in real time from the user devices and we analyze how users experience the video streaming," explained Eric Kim, Founder and CEO at Streamlyzer, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.