Mitsui's stake in the copper mine will increase to 12% with the acquisition
Mitsui has finalised an agreement with Mitsui Mining & Smelting (MMS) to acquire an additional stake of 0.97% interest in Compañía Minera Doña Inés de Collahuasi SCM (Collahuasi) in Chile.
With the acquisition, Mitsui’s stake in the Collahuasi copper mine will increase to 12%. The mine is located in northern Chile, about 180km southeast of the port of Iquique.
In addition, the agreement will result in Japan Collahuasi Resources (JCR) becoming a wholly owned subsidiary of Mitsui. JCR is a holding company jointly owned by Mitsui and MMS.
As part of the agreement, Mitsui will acquire the 8.1% equity held by MMS in JCR.
Mitsui stated: “The corporate strategy defined in Mitsui’s Medium-term Management Plan 2023 calls for evolution of portfolio management and enhancement of profitability in its core business.
“Together with the divestiture of Mitsui’s interest in the Caserones copper mine in Chile announced last November, the acquisition of increased interest in Collahuasi forms part of the business portfolio restructuring under this strategy.
“Mitsui will strive to contribute to sustainable social and environmental development by working to maximize the value of its existing businesses and enhance its functions throughout the value chain.”
Mitsui has been participating in the Collahuasi copper mine since 1996. Operated under a large scale open-pit mine, Collahuasi is one of the world’s top copper mines in terms of production and reserves.
In January, the company signed an agreement with Brazilian firm Vale to sell its stake in the Moatize coal mine in Mozambique.
The agreement was reached for the acquisition of Mitsui’s 15% stake in the Moatize mine.