South32 CEO Graham Kerr announces the agreement
We have entered into two binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation (collectively Sumitomo) to acquire a 45 per cent interest in the Sierra Gorda copper mine in Chile’s prolific Antofagasta copper region for an upfront cash consideration of US$1.55 billion.
In making the announcement, our CEO Graham Kerr said the acquisition was another transformative step for South32.
"We are actively reshaping our portfolio for a low carbon world and the acquisition of an interest in Sierra Gorda will increase our exposure to the commodities important to that transition. Copper is a critical metal in the decarbonisation of the world's energy networks and has strong long-term market fundamentals,” Graham said.
“Adding Sierra Gorda further improves our portfolio and is expected to immediately lift Group margins and earnings, supporting future shareholder returns while retaining strength and flexibility in our Balance Sheet.”
“The transaction expands our operating and development presence in the Americas and provides exposure to a long-life asset with a large resource base. The operation has existing opportunities to unlock further upside through improved production efficiency, resource expansion and exploration.”
Read our market announcement for more detail:
South32 to acquire a 45% interest in the Sierra Gorda Copper Mine