Mining giant China Molybdenum Company has declared its intention to complete a US$2.15 billion acquisition for “certain overseas mining assets from an international mining company”.
The company revealed yesterday that its board of directors had decided to launch a bid after tracking an “asset sale” for close to six months and intended to “acquire partial or all the interests in the project”.
Rumors and speculation regarding the massive acquisition indicate China Molybdenum’s eye is on Barrick Gold’s Zaldivar copper mine in Chile. In April Barrick announced it wanted to sell up to 50% of the mine – estimated to be worth around $1 billion. Given the timeframe and asset size, Zaldivar could be the target.
Although China Molybdenum has focused primarily on molybdenum and tungsten assets, it has been diversifying into the copper sector having paid $820 million for Rio Tinto’s Northparkes copper mine in New South Wales in 2013.