International news within the industry of mining and metal, May, 22 2019
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Canadian miner to acquire Brazilian copper-gold asset for $800M

Photo: Lundin Mining
Photo: Lundin Mining
Published by
Jaroslaw Adamowski - 22 Apr 2019

Canada’s Lundin Mining has agreed to pur-chase the Chapada copper-gold mine in Brazil from Yamana Gold under a deal worth some $800 million.

 

"In addition, Yamana will retain a 2.0% net smelter return (NSR) roy-alty on future gold production from the Suruca gold deposit and re-ceive contingent consideration of up to US$125 million over five years if certain gold price thresholds are met and contingent consideration of US$100 million on potential construction of a pyrite roaster," Lundin Mining said in a statement.

 

The miner says Chapada has the potential to sustain production in the range of 68,000 to 72,500 tonnes of copper and 100,000 to 110,000 oz of gold per year under an expansion scenario through at least 2034.

 

Lundin Mining says it runs operations in Chile, the US, Portugal and Sweden, primarily producing copper, zinc and nickel. The company also has an indirect 24% equity stake in the Freeport Cobalt Oy busi-ness which runs a cobalt refinery in Finland’s Kokkola.

Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat
Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat

Chinese control half of the Congo's cobalt