Peru's Minsur takes full control of Mina Justa

Thursday, September 29, 2016

Peruvian miner Minsur said Thursday it will up its stake in Mina Justa, one of the country's biggest undeveloped copper properties, to 100% as improving metals prices spur the industry to dust off projects.

Minsur's Cumbres Andinas unit will pay Korea Resources and LS-Nikko US$90mn for their 30% stake in project holder Marcobre, the Lima-based company said in a corporate filing to securities regulator SMV.

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The company added its board approved a US$60mn capital injection to pay for the transaction.

Tin and gold miner Minsur, which has operations in Peru and Brazil, plans to finish work next year on a feasibility study for the US$1.3-1.5bn project, which could start operations in 2020, CEO Juan Luis Kruger said in August.

Mina Justa, located in Ica region, has 3.3Mt in reserves and is expected to produce 150,000t/y copper over the first five years and 90,000t/y over the 16-year life of the mine at cash costs of US$1.60-1.70/lb.

Miners including Teck Resources, Newmont Mining, Barrick Gold and Hochschild Mining have recently announced plans to reactivate projects. Copper prices have rebounded this year to about US$2.17/lb since slipping below US$2/lb in January, while those of gold, silver, zinc and tin have also gained.

Minsur produced 11,778t tin, 61,152oz gold and 897t of niobium-tantalum alloys in the first half.