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BHP has entered into an agreement to sell Cerro Colorado copper mine in Chile to private equity manager EMR Capital.
Under the terms of the agreement, total cash consideration consists of US$230mn to be paid to BHP after closing of the transaction (subject to customary closing adjustments), plus approximately US$40mn in proceeds from the post-closing sale of certain Cerro Colorado copper inventory, and a contingent payment of up to US$50mn to be paid in the future, depending upon copper price performance.
The sale is subject to financing and customary closing conditions, and is expected to close during the fourth quarter of calendar year 2018.
BHP and EMR Capital are committed to working together to facilitate a smooth transition of ownership.
Cerro Colorado is located in the Atacama Desert in northern Chile and represents one of two copper mining operations of BHP's Pampa Norte division. In fiscal year 2017, Cerro Colorado produced 65,000 tonnes of copper cathode.
Further information on BHP can be found at: bhp.com