Showing posts with label CST Mining Group Ltd. Show all posts
Showing posts with label CST Mining Group Ltd. Show all posts

Friday, April 27, 2012

CST sells Mina Justa for US$505m

Hong Kong-based copper producer CST Mining Group Ltd said it would sell a 70% stake in the Mina Justa copper project to Peru-based base-metals firm Minsur SA, for a total US$505 million.

Located in southern Peru, Mina Justa has been estimated to hold copper reserves of 163Mt at 0.8%, and annual production was projected at 110,000t/y over 11.5 years, comprising 50,000t/y as cathode and 60,000t/y in concentrates.

The project was the subject of a US$475 million offer from Glencore last December, but the agreement was terminated after the commodities giant said that conditions of the deal were not met.

CST and Minsur said that details of the transaction would be released in due course, with Minsur to place a US$50.5 million deposit in an escrow account during the transaction.