Marubeni Acquires 30% Equity in Chilean 2 Copper Projects

Marubeni Corporation, Japanese major trading house, announced on Friday the firm agreed with Antofagasta, one of Chilean major copper producers, to acquire 30% stakes in Esperanza and El Tesoro projects in Chile. Marubeni Corp will invest total US$ 1.9 billion, US$ 1.31 billion for equity acquisition and US$ 600 million for development of Esperanza mine. By this acquisition, Marubeni Corp will sell copper concentrate at 210,000 tonnes per year to Japanese smelters, which represents 5% in Japanese annual copper concentrate import.Antofagasta has developed Esperanza mine which is located in the Sierra Gorda district of northern Chile. The proven and probable copper reserves are 480 million tonnes. The production will start during October-December 2010 with average output of copper concentrate at 700,000 tonnes per year (200,000 tonnes as copper metal) by 2020. The mine will also produce gold at 230,000 ounces and silver at 1.6 million ounces.Development cost for Esperanza mine is estimated at approximately US$ 1.9 billion and Marubeni Corp will pay about US$ 600 million along its equity at 30%. The project also includes development of Telegrafo deposit, which is located next to Esperanza mine. The production is scheduled to start in 2026. Telegrafo is expected to enhance life of Esperanza mine to 2049.El Tesoro mine started production in 2001, located in the Sierra Gorda district. The annual production was 93,000 tonnes as copper metal in 2007. Marubeni Corp doesn’t have a right to gain copper metal from El Tesoro mine while takes dividends along the 30% equity.