Private equity fund EMR Capital has agreed to buy the Cerro Colorado copper mine in Chile from BHP, the latter company said in a statement.
The deal is worth $230 million in cash which is to be paid to BHP following closing of the transaction, an additional $40 million in proceeds from the post-closing sale of some of the mine’s copper inventory, as well as a contingent payment of up to $50 million, depending on copper price performance, which is to be paid in the future, according to the statement.
Located in the Atacama Desert in Chile’s northern part, Cerro Colorado is one of two copper mining operations of BHP’s Pampa Norte division. In fiscal year 2017, the Chilean mine produced some 65,000 tonnes of copper cathode, according to data released by BHP.