Marubeni Pays $1.3bn for Chilean Mine Stakes

Japanese conglomerate Marubeni has agreed to buy two 30% stakes in Chilean mine units from Antofagasta for $1.31bn. The Minera Esperanza unit holds the Esperanza and Telegrafo deposits and the Minera El Tesoro holds the El Tesoro mine and Tesoro Northeast deposits. Marubeni will also provide its share of the $1.9bn expected investment to develop the Esperanza project. Both units are located in the Sierra Gorda district of northern Chile. In a separate transaction contingent on the Marubeni deal, Antofagasta will buy out for $240m partner Mineralinvest Establishment in neighboring properties necessary for the development of Esperanza. Rothschild and Sullivan & Cromwell are advising Antofagasta on the Marubeni transaction.