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    the Caribbean
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  • Middle East
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  • East Asia
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Mitsubishi Corporation

Press Room

June 15, 2018
Mitsubishi Corporation

Mitsubishi Corporation to acquire additional 21.9% stake in Quellaveco Copper Mine Project

Mitsubishi Corporation (“MC”) is pleased to announce that it has agreed with Anglo American plc (“AA”) to acquire an additional 21.9% equity interest in Anglo American Quellaveco S.A. (“AAQSA”), which owns the Quellaveco copper mine project in Peru (“Quellaveco”).  This investment will increase MC’s total interest in AAQSA to 40% (the “Transaction”).
 
MC acquired a 18.1% interest in AAQSA in 2012. Subject to required regulatory approvals and AA’s board approval to develop the Quellaveco project, MC will acquire an additional 21.9% equity interest for a consideration of US$500 million*. Closing of the Transaction is expected to be within the second quarter in FY2018, and development of the project will commence later this year, with estimated first copper production in 2022.
 
Quellaveco is one of the world’s largest undeveloped copper deposits, with high cost competitiveness and containing approximately 7.5 million tonnes (content metal basis) of copper in Ore Reserves. The Transaction is expected to increase MC’s attributable copper production by approximately 120,000 tonnes per year.
 
Copper is widely used in electrical networks, automobile parts, and consumer electronics, and has become a material critical in supporting modern lifestyles and infrastructure.  Growth in global copper demand is expected to remain steady, fueled by infrastructure and electronic network development in emerging countries, as well as growth in the global electric vehicle market centered around China and Europe.
 
MC’s existing participation in world-class copper mining assets with high resource volumes, quality, and potential for further expansion, in light of such increasing global demand, makes copper one of the core areas in MC’s resources business. Through the successful development of Quellaveco, MC will secure a highly competitive copper asset ensuring stable supply in order to respond to the long-term needs of society. MC is committed to meeting stakeholders’ expectations, while achieving a balanced realization of economic, social, and environmental values for the sustainable growth of the company.
 
* The consideration will be settled upon closing by way of a primary share subscription in AAQSA. An additional contingent consideration shall be made upon the successful achievement of two ore treatment expansions, total of US$100 million.
 
 
1. Quellaveco Copper Mine Project   
Location     
Moquegua region of Southern Peru
Ore Reserves     
7.5 million tonnes of copper (content metal basis)
Annual Production     
c.a. 300,000 tonnes over its first ten years of operation
Reserve Life     
30 years, with potential for further extension
First copper production     
Expected in 2022
Remarks     
MC acquired a 18.1% interest in AAQSA in February 2012. JPY 85.3 Billion of the carrying amount (including capital expenditure for early works) has been valued at the fair value and its evaluation gain or loss has been recognized in other comprehensive income. After the completion of the acquisition of an additional 21.9% equity interest, AAQSA will be classified as an equity method entity in MC. The difference arising from the fair value adjustment of the previously held shares will be transferred to retained earnings in equity without being recognized in profit or loss.
2. About Mitsubishi Corporation
Head Office: 3-1, Marunouchi 2-Chome, Chiyoda-Ku, Tokyo 100-8086, Japan
Main Business: Mitsubishi Corporation is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. Mitsubishi Corporation’s current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.
Representative: Takehiko Kakiuchi, President and CEO
Establishment : 1954
 
3. About Anglo American plc
Head Office: 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom 
Main Business: Anglo American is a global diversified mining business, with a portfolio of world-class mining operations and undeveloped resources of diamonds, copper, platinum and other precious metals, iron ore, coal, and nickel.
Representative: Mark Cutifani, Chief Executive
Establishment : 1917

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