Copec reportedly eyeing Freeport's El Abra stake
Chilean conglomerate Copec, through its mining investment unit Alxar Minería, is considering acquiring Freeport-McMoRan's majority stake in local mine El Abra, local newspaper La Tercera reported.
Axlar is willing to present an attractive economic offer for the 51% controlled by the Arizona-based miner, as Copec has a strong cash flow and has been considering entering the large-scale mining industry, the daily reported, citing unnamed industry sources.
But Copec could face stiff competition from Freeport's junior partner in El Abra, Chilean state copper giant Codelco, which owns a 49% stake.
According to the shareholder agreement between Freeport and Codelco, the latter has the first option to acquire all or a portion of Freeport's stake if it matches a third party offer, according to the daily.
Freeport has been in the process of divesting some of its assets as a way to deal with its debt and to face the commodities slump. In 2014 it sold its 80% in Chilean mine Candelaria to Lundin Mining, and this week it sold its majority stake in the Tenke Fungurume mine in the DRC to China Molybdenum for US$2.65bn.
Freeport has also said it is considering selling a stake in its flagship South American mine, Peru's Cerro Verde, though it would do so reluctantly.
Copec, meanwhile, has also reportedly offered to acquire Glencore's Lomas Bayas mine, which the Switzerland-based commodities giant put on sale last year, also to reduce its debt burden.
Copec pushed to acquire a stake at Barrick Gold's Zaldívar mine in Chile last year, but it was outbid by Antofagasta Minerals, which purchased 50% of the mine for US$1bn.
El Abra produced 28,400t of copper in the first quarter, down 27.0% year-on-year.
Copec, controlled by local family Angelini, has interests in the oil, coal, ports and forestry businesses, among other areas.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Mining & Metals (Chile)
Chile to launch indigenous consultation on lithium project
The objective is to evaluate a request from state-owned company Enami to explore and produce lithium in salt flats in Atacama region, where indigen...
Chilean steelmaker shuts rolling mill on soaring debts, 'unfair' Chinese imports
The mill contributed 10% of the company's total steel output, manufacturing wire rods and bars for construction.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Mining & Metals (Chile)
Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Operational Continuity Phase V El Soldado
- Current stage:
- Updated:
1 month ago
- Project: Arqueros Mining Project
- Current stage:
- Updated:
1 month ago
- Project: Laguna Escondida
- Current stage:
- Updated:
1 month ago
- Project: Teck CDA operational continuity (Carmen de Andacollo)
- Current stage:
- Updated:
1 month ago
- Project: Mantos Blancos Concentrator Plant Capacity Increase, Phase II
- Current stage:
- Updated:
1 month ago
- Project: Nord
- Current stage:
- Updated:
1 month ago
- Project: Copaquire
- Current stage:
- Updated:
1 month ago
- Project: Altazor
- Current stage:
- Updated:
1 month ago
- Project: La Cobaltera (La Cobaltera Pty)
- Current stage:
- Updated:
1 month ago
- Project: Future Development Division Minister Hales
- Current stage:
- Updated:
1 month ago
Other companies in: Mining & Metals (Chile)
Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Green Lithium Corporation  (Litio Iniciativa)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: CDZ Minería
- Company: Sociedad Minera Atlantida
- Company: First Lithium Minerals SpA  (First Lithium Minerals)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: BRASS Chile S.A.  (BRASS Chile)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Brass Latam SpA  (Brass Latam)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: MPM Ltda.  (Mantención Proyectos Montajes)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Sierra Gorda Sociedad Contractual Minera  (Sierra Gorda SCM)
-
Sierra Gorda Sociedad Contractual Minera (Sierra Gorda SCM) is made up of the Australian South 32 (45%) and the Polish mining company KGHM International Ltd. (55%). The company ...
- Company: GRT Ingenieros SpA  (GRT Ingenieros)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Pampa Camarones SpA  (Pampa Camarones)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...