- Write by:
-
Saturday, March 6, 2021 - 6:20:41 PM
-
652 Visit
-
Print
Mining News Pro - Poland’s state-run mining company, KGHM, plans to sell its Robinson and Carlota copper mines in the United States and reinvest the proceeds in its domestic operations, two banking sources said.
KGHM, one of Europe’s biggest copper and silver producers, became the owner of the US mines in 2012, when it bought rival Canadian Quadra FNX.
Copper, a highly efficient conductor of electricity and heat, is in high demand for use in renewable energy systems to generate power and in electric vehicles. New deposits are rare and increasingly difficult to recover.
The two US copper mines, in Nevada and Arizona, are valued at around $500 million and with strong copper prices they are expected to attract interest from North American private equity firms or smaller mining companies, one of the sources said.
“Scenarios for individual assets are at various stages of advancement,” KGHM said in an emailed statement, adding it would continue to work on enhancing the value of its key assets.
KGHM said the $500 million valuation given by the source “appears to be at odds with the company estimation,” declining to comment further.
The company has been mining in Poland since the 1950s and it is 32% owned by the government.
KGHM’s international expansion was questioned by the conservative Law and Justice (PiS) party, which took power in 2015.
Since then, KGHM has put some of its foreign assets under review for potential sale and stressed it would focus mostly on investing in core and domestic assets, including copper and silver mines and copper smelters.
Investors have also been keen for details on KGHM’s plans regarding Chilean Sierra Gorda mine, its flagship foreign asset, where it has a 55% stake, after its Japanese partner Sumitomo Metal Mining put its 45% on the block last October with the help of RBC Capital Markets.
Sources at the time said KGHM would not take on the rest of the mine.
In February, Chief Executive Marcin Chludzinski told Reuters that KGHM sees its stake in Sierra Gorda as “optimal.”
Short Link:
https://www.miningnews.ir/En/News/611707
A Russian arbitration court ruled on Monday that four units of Swiss commodities trader Glencore will pay more than 11.4 ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Codelco is exploring more partnerships with the private sector as Chile’s state copper behemoth looks to recover from a ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
The world’s coal-fired power capacity grew 2% last year, its highest annual increase since 2016, driven by new builds in ...
Peabody Energy Corp. shares sunk to the lowest in seven months after the biggest US coal miner warned that first-quarter ...
Peru’s Las Bambas copper mine, owned by China’s MMG, is facing renewed blockades of a key transport route after failed ...
Vitol Group confirmed that it’s starting to rebuild a trading book for metals after a long stint out of the market, with ...
Rio Tinto said on Wednesday it is teaming up with a global venture studio and start-up investor to back the development ...
No comments have been posted yet ...