Copper: Sumitomo to sell Chilean mine shares to South32

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.