BHP to sell Cerro Colorado Mine in Chile for $320 million

By Dale Benton
After a year long search for a buyer, one of the largest copper producers in the world has sold its smallest asset in Chile. BHP Billiton announced thi...

After a year long search for a buyer, one of the largest copper producers in the world has sold its smallest asset in Chile.

BHP Billiton announced this week that it has entered into an agreement to sell its Cerro Colorado Mine to Australian based EMR Capital Advisers, in a deal valued at around $320 million.

The deal is expected to close in the fourth quarter of 2018 and comes at a time where BHP is looking to focus its portfolio on “major operations.”

Related stories:

BHP Billiton records 25% H1 2018 profit rise

BHP Billiton sees 2.9% increase in female representation

BHP Billiton records major milestones at Olympic Dam

 

The deal will see $230 million paid in cash, with $40 million in proceeds from copper stocks and a further $50 million dependent on the price fluctuation of copper.

“We see this mine as having a very long-term future, so we will work very closely with the workforce, the community and the government in ensuring this mine is successful,” EMR Capital Chief Executive Officer Jason Chang told Bloomberg. “We want to improve the mine, including increasing production.”

Cerro Colorado is located in the Atacama Desert in northern Chile and represents one of two copper mining operations of BHP’s Pampa Norte division. In fiscal year 2017, Cerro Colorado produced 65,000 tonnes of copper cathode.

 

Share

Featured Articles

Hitachi Construction Forges Ahead With Oracle Cloud

Hitachi Construction Machinery boosts performance through Oracle Cloud-based digital transformation, paving way for AI-driven future

Mining Firms 'Should Consider Hydrogen-Driven Mining Trucks'

SRK Consulting Senior Mining Engineer Tyrone Woodfin urges mining companies to consider using green hydrogen-powerered mining vehicles as well as EVs

Platinum Slump Sees ARM Target China Chrome Market

African Rainbow Minerals reacts to plummeting platinum profits by targeting chrome ore output to feed strong chromium demand from China's steel industry

Schneider Helping Mining Balance Demand with Sustainability

Sustainability

Coal Power 'on Wane but China & India Account for 86%'

Supply Chain & Operations

West Must Wrest Lithium Supply From China, Brinsden Urges

Supply Chain & Operations