NEWS
Copper   Precious Metals  

China’s Zijin buys Freeport’s copper-gold assets in Serbia for up to $390 million

Zijin Mining, one of China’s biggest gold producers, said on Monday it would buy partner Freeport McMoran Inc’s copper-gold assets in Serbia for up to $390 million, substantially boosting its resources of both metals.

The move continues a recent acquisition spree for Zijin and strengthens its foothold in the Balkans, having entered Serbia when it took over local copper producer RTB Bor in 2018, before completing the purchase of Nevsun Resources, which also has interests in Serbia, for $1.4 billion this year.

Zijin will pay Freeport an initial $240 million for its stake in the lower zone of the Timok copper-gold mine, plus 0.4% of the net sales proceeds once production begins, up to an aggregate maximum amount of $150 million, according to a filing to the Hong Kong stock exchange.

Zijin already has a 100% interest in the upper zone through its Nevsun acquisition and holds 60.4% of the lower zone

Zijin already has a 100% interest in the upper zone through its Nevsun acquisition and holds 60.4% of the lower zone. Freeport owns the rest of the lower zone but its holding was due to rise to 54% on completion of a feasibility study.

“After completion of the transaction, the company will own 100% interests in the resources of both the upper zone and the lower zone,” Zijin said, adding that the purchase would allow the company to increase its resources and further its internationalisation.

It said the acquisition would lift its total controlled copper resources by 7.72 million tonnes, or 15.6%, to 57.24 million tonnes on an equity basis, while its gold resources would rise by 161 tonnes, or 9.3%, to 1,889 tonnes.

Phoenix-based Freeport did not immediately respond to a request for comment on the sale outside of normal business hours.

Development of the lower zone of Timok has not yet started but Zijin said the deal would help with unified planning, construction and operation of the project. Production from the upper zone is expected to begin in 2021, it added.

Zijin will also acquire Freeport’s interests in five exploration licenses in the surrounding area, which are currently held by a Zijin-Freeport joint venture and have “favourable potential for prospecting,” the statement said.

Zijin expects the transaction to be completed no later than Feb. 29, 2020.

News No: 7153
Date: 2019/11/05 - 02:17
News Source: Mining.com

gold  copper  Freeport McMoran Inc  Zijin Mining 

Comments:

Leave a Comment:

   
   
   
 

4 charts that say this time the copper price surge could last

The price of copper surged on Friday after reports showed the US economy in robust health on the back of strong payroll numbers – the best reading since January – and progress in trade talks with China.
 

Commentary: Gold sector fragmentation hurts investors

Of all the mining sectors, gold is possibly the most fragmented, and the gold industry and its investors would realize considerable benefits from consolidation. Brokerage Pollitt & Co. estimates that 50% of global iron ore and copper production comes from four and 10 companies, respectively, while 25 companies account for just 45% of total gold production.
 

Four dead after rock collapse at South African gold mine

Four mineworkers were killed and one was seriously injured after a rock fall at a South African gold mine on Friday trapped five workers underground, the company and a mining union said on Sunday.
 

B2Gold’s drilling results for Fekola mine in Mali show room to grow north

Mid-tier Canadian miner B2Gold (TSX:BTO)(NYSE: BTG) has announced year-end exploration results for the Fekola property and Anaconda area in Mali that continue to support the conversion of Inferred Mineral Resources to Indicated Mineral Resources within the resource pit boundary.
 

Geoscience BC to explore copper-gold deposits buried below till

Geoscience BC launched the Central Interior Copper-Gold Research series, a C$2.9-million initiative that aims to focus mineral exploration and attract investment across 50,700 square kilometres of British Columbia’s Cariboo and Fraser Canyon Countries.
 

Copper primed for a pop if US-China trade war is resolved

Low inventories across the copper supply chain mean that any resolution to the U.S.-China trade war could trigger a snap rally in prices as consumers rush to restock, market participants said on Tuesday.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners