Whitehaven Coal sees higher prices on disruptions
The company's Blackwater and Daunia mines in Queensland, which it recently purchased from BHP, produced 4.8 million tonnes.
Frieda River project in Papua New Guinea.
Commodities giant Glencore Xstrata (LON:GLEN) agreed Friday to sell its majority stake in the undeveloped Frieda River mine in Papua New Guinea to Australian copper and gold miner PanAust (ASX:PNA).
The sale of one of the Asia-Pacific’s largest copper deposits, believe analysts, is the freshest sign of a revival in mining deals, as a few commodities rebound.
As part of the agreement, PanAust will pay an initial $25 million upon closing of the transaction and a further $50 million on Dec. 31, 2015.
The Aussie miner has also agreed to acquire a 7.5% stake in Highlands Pacific, the minority partner in the Frieda River project, for $4.7 million.
With the deal, Glencore has secured a 2% net smelter return royalty on PanAust’s interest in the project, for an aggregate amount of $50 million, conditional on the development of the project.
Xstrata, which spent around $200 million on pre-development work, decided to sell its stake in the Frieda River well over a year ago, before the Glencore acquisition.
According to PanAust, the mine has the potential of generating an annual copper production of 100,000 tonnes, and gold by-products of 160,000 ounces.
Comments
Project director
Insufficient management to pull it off…..?….sell….