Xstrata sells its interest in El Morro copper mine
MINING group Xstrata agreed to sell its 70 per cent interest in the El Morro copper-gold project in Chile for $465m (£294m) to Canada’s Barrick Gold, Xstrata said yesterday.
“While we have demonstrated through the feasibility study that El Morro has strong prospects, our agreement with Barrick is a recognition that it will create more value as part of Barrick’s portfolio than Xstrata Copper’s,” said Charlie Sartain, who heads Xstrata’s copper division.
“The sale will enable us to better direct our resources toward our other priority development projects.”
Xstrata, the world’s fifth biggest diversified mining group by market value, said the deal was expected to close before the end of January.
Xstrata acquired El Morro, which is located 4,000 meters above sea level in north-central Chile, when it bought Canada’s Falconbridge in 2006.