Timok Copper and Gold mine
China's Zijin Mining Group has agreed to acquire Freeport-McMoRan's Serbian copper and gold assets in a deal worth up to €350-million, the company said in a press release.
The Chinese mining company will pay €217-million for 72% of the class B shares of CuAu International Holdings, a unit of Freeport McMoRan, as well as 0,4% of the net proceeds from annual sales of all products, up to an aggregate maximum of €135.5-million, according to a filing made by Zijin with the Hong Kong Stock Exchange.
When the transaction is complete, Zijin will own 100% of the resources in the Timok copper and gold mine's Upper and Lower Zones in the eastern region of Serbia and 250 km south-east of the capital, Belgrade.
Zijin says its acquisition is set to boost the total copper resources it controls by 15.6%, around 7.72 million tonnes. Its gold resources will rise by 9.3% - 161 tonnes - to a total of 1,889 tonnes.
As part of the deal, Zijin will also acquire Freeport McMoRan's interests in five exploration licences in the area surrounding the Timok mine.
In December 2018 Zijin invested €316-million in Serbian copper mining and smelting company RTB Bor, giving it majority ownership and subsequently renaming it Zijin Bor Copper. Serbia's energy minister Aleksandar Antic said that the new owners will invest a further €1.14-billion in RTB Bor in order to improve production operations, increase efficiency and open new mines.
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