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Japan’s Sumitomo Metal Mining and Sumitomo Corp have agreed to sell their stakes in Chile’s Sierra Gorda copper mine to Australian miner South32 Ltd for about $1.5 billion.
The Japanese companies, which together hold a 45% stake, had reported last year that they were considering exiting the company, which they own with Polish state miner KGHM.
Sumitomo Metal Mining reported that the deal price would include a transfer of around $1.2bn and payments linked to the copper price of up to $350m.
For South32, the deal would mark an entry into the world’s largest copper-producing country, ahead of an expected boom in demand for the metal, which is used in everything from household appliances to electric vehicles.
Graham Kerr, chief executive of South32, said: ‘We are actively reshaping our portfolio for a low-carbon world and acquiring an interest in Sierra Gorda will increase our exposure to commodities important to this transition.