Zidjin Mining group will buy a stake in the lower zone of the deposit from Friport McMoran for $ 390 million, and become the sole owner of the complete copper and gold deposit at Bor. Freeport McMoRan, which found the Chukaru Peki deposit in 2010, no longer has any stake in it.
November 4, 2019. – China’s Zijin Mining Corporation announced today that it will buy the Lower Zone of the Chukaru Peki Copper and Gold mine project from Freeport McMoran for $ 390 million, and become the sole owner of the mine, thereby significantly increasing the resources of both metals .
Zijin already has a 100 percent stake in the upper zone of the deposit he bought from Nevsun, and in that package was 60.4 percent of the lower zone, owned by Freeport.
The Chinese company expects the transaction with Freeport to be completed no later than February 29, 2020.
Zijin reportedly will pay Freeport an initial $ 240 million for the lower mine zone, plus 0.4 percent of net sales when production starts, to a total maximum of $ 150 million.
The move is a continuation of Zijin’s acquisition of ore reserves, which is a stronghold in the Balkans and Serbia, through the acquisition of a stake in the RTB Bor mine in 2018, as well as the acquisition of the Canadian company Nevsun for $ 1.4 billion this year.
This move will increase Zijin’s total controlled copper resource by 7.72 million tonnes to 57.24 million tonnes in capital, while its gold resources will be increased by 161 tonnes, or 9.3 percent.
Exploitation of the upper zone of the Chukaru Peki mine is expected to begin in 2021.