Metals Acquisition Corp. (MAC) has entered into a definitive sale and purchase agreement with Glencore to acquire the CSA copper mine in the Tier 1 mining jurisdiction of western New South Wales for a total consideration of US$1.1 billion ($1.48 billion).
CSA is an established, high-grade producing, long-life underground copper mine that is expected to produce more than 40,000 tonnes of copper in 2022 with an estimated current mine life of over 15 years, and MAC has identified opportunities to further extend it, subject to exploration success.
In 2021, CSA produced 41,000 tonnes of payable copper and 459,000 ounces of payable silver, and MAC has identified multiple opportunities to optimise the operation, which could improve payable copper production at the mine.
“The acquisition of CSA represents a strong strategic fit for MAC. Our management team’s operational expertise, understanding of regional operations and relationships with local stakeholders uniquely position us to identify and realise the full potential value of the asset,” MAC chief executive officer Mick McMullen said.
“We believe that copper has favourable fundamentals that will continue to support an elevated copper price.
“Copper is expected to play a key role in the global energy transition ‘megatrend’, with approximately one million tonnes per annum of new supply required from 2024 onwards in order to meet the surging demand forecast.
“With few new projects globally in the pipeline, increasing permitting issues and jurisdictional risk, and declining copper grades across the industry, we believe that there are significant challenges ahead to close the projected supply deficit.”
Following the transaction, Glencore will continue to be a leading marketer, producer and exporter of Australian metals and minerals that will underpin the global transition to a low-carbon future.