Glencore buys Newmont’s stake in Argentina copper-gold project
Mining and commodities giant Glencore is buying Newmont’s minority stake in the Argentinean MARA cooper-gold project, a joint venture created in 2020 between the two companies and Yamana Gold.
Glencore will pay Newmont an initial price of $124.9 million for the gold miner’s 18.75% interest in MARA. There will also be a $30 million deferred payment once commercial production begins, the companies said. This will be subject to an annual interest charge of 6%, with a total deferred consideration capped at $50 million.
The deal increases Glencore’s stake in MARA to 43.75%. Yamana Gold, which is the current takeover target of South Africa’s Gold Fields (JSE, NYSE: GFI) will remain the project’s operator with a 56.25% stake.
Glencore, Newmont and Yamana formed the MARA following the integration in 2019 of the Minera Alumbrera plant and mining infrastructure and Agua Rica copper-gold project.
The project, located in the Catamarca province of Argentina, has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold and an initial mine life of 28 years.
