BHP calls off sale of Chilean $320m copper mine
BHP Group Limited NPV (DI)
2,135.00p
17:15 08/11/24
BHP Group called off the sale of its smallest copper mine in Chile after a potential buyer did not meet a financial deadline.
FTSE 100
8,072.39
17:14 08/11/24
FTSE 350
4,459.45
16:59 08/11/24
FTSE All-Share
4,417.83
16:44 08/11/24
Mining
11,623.03
16:59 08/11/24
According to the Cerro Colorado mine’s union, their leaders were briefed by the managers in the mine that potential buyer EMR Capital Advisors did not secure the $320m capital for the financial deadline, Bloomberg reported on Wednesday.
BHP started the sale process for the Chilean mine in March 2017. In June this year BHP announced it was willing to sell Cerro Colorado in Chile for $230m in cash plus $40m in proceeds and around $50m depending on the prices of the metal.
“We inform you today that the sale will not go ahead because the financing condition will not be fulfilled in the established deadline," said an internal statement signed by Cerro Colorado General Manager Patricio Hidalgo, Bloomberg reported. "This situation was within the possibilities and is not uncommon in businesses of such magnitude."
Cerro Colorado mine produces 77,256 metric tons in the year of copper. Although the company admits the mine has options to expand its lifespan, it’s environmental license runs out in 2023 and after that new terms will have to be negotiated.