Anglo American announces sale of Norte copper business for $300 million, with potential upside to up to $500 million
24 August, 2015
Anglo American plc ("Anglo American") announces that it has reached agreement for the sale of its interest in Anglo American Norte S.A. (“Norte”) to an investor consortium led by Audley Capital Advisors LLP, with Orion Mine Finance as the principal co-investor, for an up-front cash consideration of $300 million, with potential upside to up to $500 million. Norte consists of the Mantoverde and Mantos Blancos copper mines located in northern Chile.
The total consideration payable to Anglo American consists of $300 million in cash payable at closing (subject to certain closing and post-closing adjustments) and a number of additional future payments totalling up to $200 million, contingent upon factors including the average LME (London Metals Exchange) copper price performance and any future decision to pursue the sulphide life extension of the Mantoverde mine.
Mark Cutifani, Chief Executive of Anglo American, said: “The sale of our Norte copper assets to the Audley consortium represents a good outcome for Anglo American, both in terms of the up-front value achieved, the potential upside geared to the copper price and the continued delivery of our asset disposal programme. John MacKenzie’s longstanding knowledge of these two mines and his appreciation for the operating environment in Chile stand him and the team on the ground in good stead for the future. In line with our strategic objectives, we are focusing our diversified portfolio on our largest and most value accretive assets, which include the Los Bronces and Collahuasi copper mines in Chile and the Quellaveco copper project in Peru.”
John MacKenzie, CEO: Mining of Audley, commented: “I am delighted that, together with Orion, we are to acquire the Mantoverde and Mantos Blancos mines in Chile. I know both of these operations well and can see the scope to further enhance the business under our ownership, particularly in terms of their life extension potential to meet our expected view of constrained copper supply in the medium and longer term. I have a high regard for the team of people who work at these operations, and believe that Chile remains one of the most attractive destinations for mining investment.”
This transaction is not subject to any regulatory conditions and is expected to close in Q3 2015.