Private Chilean copper producer
Mantos Copper has secured $250 million to fund the expansion of the sulphides
concentrator at its Mantos Blancos operation, which will extend the life of the
open-pit mine until 2035 and reduce costs.
The figure includes a $150 million-loan
from Glencore’s subsidiary Altonorte. Another $50 million will come from a
recent copper
royalty agreement with Anglo Pacific (LON, TSX: APY), the company said.
Mantos Copper also signed a $50m
copper royalty agreement with Anglo Pacific and a $25m modification to
increase the existing silver concentrate agreement with Osisko Gold Royalties.
The concentrator is to be expanded
from a 4.3 million tonnes per year capacity to 7.3 Mtpa before the natural
depletion of the oxides ore in 2023.
“The financing represents an
important milestone in Mantos Copper’s strategy to extend and expand its operating
mines in an efficient and sustainable manner, while reducing operational costs,”
the company’s executive chairman, John MacKenzie, said in the statement.
Mantos Copper, owned by a
consortium led by British investment company Audley Capital Advisors and Orion
Mine Finance Group, acquired Mantos Blancos mine from Anglo American in
2015.
The operation is forecast to
produce 45,400 tonnes and 42,300 tonnes of copper in 2019 and 2020 respectively
and an average of 52,400 tonnes annually during the first ten years following
the completion of the concentrator expansion in 2021.
Copper, used in power, batteries
and construction, is one of the most sought-after commodities and the mining
company is expected to attract the interest of many parties, especially in
Chile where output has slipped in recent years.
Chile is the world’s largest
copper producer, meeting more than 30% of global demand. The metal accounts for
up to 15% of the country’s gross domestic product.
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