Mining Magazine > Panorama > Chinalco Yunnan and Rio Tinto to mine copper in Chile

Chinalco Yunnan Copper Resources has signed an earn-in agreement with an option to joint venture with Rio Tinto in northern Chile. The Candelabro porphyry copper and molybdenum prospect is 60km north of BHP Billiton’s Cerro Colorado mine, and covers about 4,200ha.
According to The Australian, Chinalco Yunnan said the advanced project will be drilled ahead of the Caramasa and Palmani copper prospects in the region, where it also has agreements with Rio Tinto to farm-in to the projects.
The company’s subsidiary can earn a 40% stake in the Candelabro project with drill work and an investment of US$8 million, including a minimum spend of US$250,000 in the first year, after which Rio Tinto will have 90 days to either resume management of the project or grant the company a further three years to invest US$15 million to take its interest to 60%. If Rio Tinto maintains its 60% controlling stake, then a joint venture company will be formed between the companies.
Chinalco Yunnan’s largest shareholder is a majority-owned unit of Aluminium Corp of China, or Chinalco, which holds a 21% interest and is also Rio Tinto’s largest shareholder with a 9% stake.
Rio Tinto and Chinalco formed a joint venture in June to explore mainland China for copper and other minerals, and the two companies are also developing a prospective iron ore deposit in Guinea.