Trafigura's Mining Group announced that it has entered into an agreement to sell its 98.68% stake in Compañia Minera Condestable SA ("CMC") to Southern Peaks Mining LP ("SPM"). Completion of the sale is subject to certain conditions and is expected to close in the next eight weeks. During this time the parties will ensure a smooth transition process, keeping the staff as well as local stakeholders informed. CMC is one of the top ten copper producers in Peru and produces copper concentrate containing gold and silver by-products. The company has been in operation since 1995, employs 1,975 people and currently processes 7,000 tonnes per day.
"The acquisition of CMC furthers our business plan of becoming a mid-tier South American base metals producer," said Adolfo Vera, CEO of SPM. "CMC gives SPM an additional producing asset and supplements SPM's existing reserve base. We believe that CMC has the potential to continue producing significantly beyond the current defined mine life and we look forward to working with the CMC workforce and the local communities in order execute a plan that will allow CMC to successfully operate well into the future."
"Trading is at the core of Trafigura's business and our investments are aligned towards complementing and enhancing this activity," said Darryll Castle, CEO Trafigura Mining Group. "Since we bought the mines at Condestable in 1997 we have significantly invested in developing the resources and in building talent which has led to the life of the mines being extended as productivity improved and efficiencies were achieved. We are selling at an optimum point in the life of the mines whilst securing the off-take 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 Condestable's future," said Darryll Castle.
Trafigura's Mining Group was established in 2012 as a wholly-owned subsidiary that oversees Trafigura's mining assets. Its strategy is to grow organically and acquire operational control of mining assets worldwide that complement Trafigura's trading competencies and international presence. The Mining Group is currently active in Latin America, Europe, Asia and Africa. Investment will continue to be made in its remaining mining business in Peru - the Catalina Huanca and the Azulcocha mines - and research is underway into possible future investments.
Southern Peaks Mining is a Peru-based private company with a portfolio of operating and near-operating base metal assets in the country. It is owned by its management and Barclays Natural Resource Investments, a division of Barclays Bank PLC.
