Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
The copper price fell on Friday after China released more base metals from its state reserves.
Copper for delivery in September fell 1.2% from Thursday’s settlement price, touching $4.466 per pound ($9,825 per tonne) on the Comex market in New York.
The release of state metal reserves is one of a number of attempts by Beijing to cool a stellar rally in commodity prices that has squeezed manufacturers’ margins.
Click here for an interactive chart of copper prices
China announced it would release a total of 170,000 tonnes of metals, including copper, aluminum and zinc, from state reserves on Thursday to nonferrous fabricators.
A total of 30,000 tonnes of copper and 50,000 tonnes of zinc was open for public bidding on the platform operated by China Minmetals Corp.
Related read: Copper price: After China ban, Australia had no problem finding new concentrate buyers
The platform crashed several minutes after auctions started, but later resumed.
Goldman Sachs said in a recent note that copper prices are poised to grow as demand outpaces supply since the concentrate market is very tight, particularly in China.
The bank’s three-month, six-month and 12-month price targets for copper are $10,500 per tonne, $11,000 per tonne, and $11,500 per tonne, respectively.
(With files from Reuters)
