Marubeni approved to establish new mining company Minera Centinela in Chile
Jul. 01. 2014
Marubeni Corporation (“Marubeni”) is pleased to announce the approval by the Board of Directors of the two Chilean copper mines Minera Esperanza (“Esperanza”) and Minera El Tesoro (“El Tesoro”), both 30% owned by Marubeni and 70% owned by Antofagasta plc. (“Antofagasta”), one of the world’s leading copper producers, for the integration of the two respective companies and the subsequent establishment of a new company, Minera Centinela (“Centinela”).
It is expected that the integration will allow for Centinela to generate significant strategic benefits, including improved cost competiveness through joint usage of heavy machinery and process plants belonging to both the Esperanza and El Tesoro mines, and streamlining management structures through measures such as consolidating the two administrative systems.
Centinela will have an estimated annual payable copper production of approximately 270 thousand tonnes, and will be expected to reach approximately 400 thousand tonnes before 2020 with its planned expansion project of the Esperanza Sur mine, transforming it to become one of the largest copper mines in Chile.
Marubeni and Antofagasta agreed to launch a joint development plan in the Centinela District in 2008, when Marubeni first became shareholder of the Esperanza and El Tesoro mines. The Centinela District boasts a number of promising undeveloped deposits, and the integration will allow us to drive forward in an even more efficient manner, in both the expansion of existing mine operations and in the future development of other new potential projects within the Centinela District.
General information of Centinela
Company Name : Minera Centinela
Establishment : September in 2014 (scheduled)
Location : Sierra Gorda District, Region II of Chile
(Approximately 160km northeast of the city of Antofagasta)
Copper Resources : 3.7 billion tonnes
Copper : Approximately 270 thousand tonnes/year of payable copper (700 thousand
tonnes of concentrate and 90 thousand tonnes of cathodes)
Gold : Approximately 240 thousand ounces/year
Marubeni continues to focus on copper mine investments as a strategic field, and in addition to expanding our existing copper business with Antofagasta in Chile, we plan to target new copper resources in other regions as well, all while securing high quality copper resources and contributing to the secure supply of copper resources to Japan.