NEW YORK Trafigura Beheer BVs mining group has agreed to sell its 98.68-percent stake in copper producer Compañia Minera Condestable SA (CMC) to Southern Peaks Mining LP.
The sale is expected to close in the next eight weeks, Netherlands-based Trafigura said June 19.
"We are selling at an optimum point in the life of the mines while securing the offtake and will continue to provide essential services such as HR and IT support during the transition period, so we have every interest in contributing to Condestables future," Darryll Castle, chief executive officer of Trafiguras mining group, said in a statement.
The company is researching future investments and will continue to invest in its two other projects in Peru, Catalina Huanca and Axulcocha, a Trafigura spokesperson told AMM.
Lima-based Southern Peaks, which is owned by its management and Barclays Natural Resource Investments, a division of Barclays Bank Plc, already has three mining operations in Peru: Ariana, La Virenya and Quiruvilca.
"The acquisition of CMC furthers our business plan of becoming a mid-tier South American base metals producer," Southern Peaks chief executive officer Adolfo Vera said in a statement. " CMC gives (Southern Peaks) an additional producing asset and supplements (Southern Peaks) existing reserve base."
CMC, which has been in operation since 1995, employs 1,975 people processing 7,000 tonnes of copper per day.