Mitsubishi Corp acquires IFC's stake in Peruvian copper project Quellaveco

Mitsubishi Corp, Japan's largest trading company, has acquired an 18.1-per cent stake in Peruvian copper project Quellaveco from the International Finance Corp (IFC).

London-based diversified miner Anglo American holds 81.9 per cent in Anglo American Quellaveco S.A (AAQSA), while IFC, a lending arm of the World Bank holds the remaining 18.1 per cent.

Although the Tokyo-based trader did not reveal the financial terms of the deal, The Nikkei yesterday reported, citing a source in Peru with knowledge of the deal, that Mitsubishi Corp would buy the stake for 60 to 70 billion yen ($761 million to $888 million).

Quellaveco Copper Mine Project, located 140km northwest of Tacna City and scheduled to start production in 2016, holds copper reserve of around 10 million tonnes with an initial mine life of 28 years at approximately 225,000 tonnes per annum.

Mitsubishi Corp said that its attributable copper production will increase by around 40,000 tonnes per annum in 2016 as a result of this acquisition. It also holds 10 per cent of the Antamina copper mine in Peru.

The $3 billion Quellaveco project has faced several delays due to opposition from local residents concerned that the mine will consume their vital water resources. Anglo American has not yet defined from where it will get water for the project.