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:

   
   
   
 

Commerzbank: ETF holdings of gold rise but fall for platinum

Exchange-traded-fund holdings of platinum have fallen sharply this month, while holdings of gold keep rising, Commerzbank said. After big inflows last week, holdings in gold ETFs tracked by Bloomberg increased by another 16 metric tons Monday, putting them above 90 million ounces or over 2,800 tons for the first time, the bank pointed out.
 

Xinjiang Amer Qian Golding Cable has ordered a CONTIROD®*copper wire rod plant from SMS group

Xinjiang Amer Qian Golding Cable Co., Ltd. from China, a subsidiary of Amer Group, has placed an order with SMS group for a CONTIROD®* casting and rolling plant to produce copper wire.
 

Copper cathode output exceeds 224,000 tons in 11 months

Copper cathode production in Iran reached 224,331 tons during the first 11 months of the current Iranian calendar year (March 21, 2019-February 19, 2020), IRNA reported citing Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) data.
 

Corriente Resources’ mining camp in Ecuador set on fire

The Esperanza camp, which is part of the San Carlos Panantza mining complex in Ecuador, was intentionally set on fire and destroyed this weekend, according to information made public by the Ministry of Energy and Natural Non-Renewable Resources.
 

Barrick unveils 10-year plan to become world’s most valued gold miner

Barrick Gold (TSX: ABX) (NYSE: GOLD), the world’s second largest gold miner, has unveiled a 10-year production plan aimed at becoming the most valued bullion company.
 

Fortuna resumes operations at San Jose mine

Fortuna Silver (NYSE: FSM, TSX: FVI) announced on Thursday that the blockade of the roads in the municipality of San José del Progreso which prevented access to the San Jose Mine has been lifted.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners