China’s MMG buys a copper mine in Africa for $2 billion | EUROtoday
China’s MMG Ltd. has struck one of many greatest copper offers of the yr, agreeing to pay $1.9 billion for a mine in southern Africa as main commodities teams compete to spice up provide of the pink metallic , writes Bloomberg.
MMG, managed by state-owned China Minmetals Corp., mentioned Tuesday it has agreed to purchase Cuprous Capital Ltd., a non-public firm that owns the Khoemacau operation in Botswana, which has been producing copper since 2021.
Copper has turn into a key goal for miners all over the world because the vitality transition takes maintain, with demand for the metallic, essential for electrical autos and energy grids, set to extend. The inclination of Glencore Plc. to Teck Resources Ltd. was motivated, at the very least partially, by the latter’s copper belongings, whereas BHP Group Ltd. has paid A$9.6 billion ($6.3 billion) this yr – a beneficiant 49% premium – for small copper rival OZ Minerals Ltd.
The acquisition of Khoemacau highlights MMG’s “confidence in copper as a raw material with strong future demand as the global energy transition accelerates,” firm president Jiqing Xu mentioned in a press release. The firm’s shares rose as a lot as 7.5% in Hong Kong.
The acquisition is predicted to be accomplished within the first half of 2024 and can “immediately be earnings accretive,” MMG mentioned.