BASE METALS

Morenci part-sale tabled

North America’s biggest copper mine has a new ownership structure following operator Freeport-McMoRan’s move to sell 13% of Morenci in Arizona to joint venture partner Sumitomo for US$1 billion.

Staff reporter
Morenci part-sale tabled

Completion of the transaction, expected by mid-year, will see Japan’s Sumitomo move to 28% ownership, with Freeport retaining the balance. The latter is selling assets to reduce its heavy debt load. Analysts said the sale implied a total value for the mine of US$7.7 billion. One said: “To us [that] appears a very, very generous price”.

“It equates to US$77,000/t of annual capacity or almost four-times what Antofagasta paid for its 50% stake in Zaldivar, a transaction that was itself considered punchy.”

For its part Freeport expects to book about a $550 million gain on the deal.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions