BHP to sell Cerro Colorado copper mine for $320mn

BHP has agreed to sell its Cerro Colorado copper mine in Chile to resources-focused private equity firm EMR Capital for as much as $320mn.

The planned sale of BHP's smallest copper mine in Chile would include $230mn after closing plus about $40mn from the post-closing sale of the mine's copper inventory and a contingent payment of up to $50mn to be paid in the future, depending upon the performance of the copper metal price, BHP said.

The sale is subject to financing and customary closing conditions and is expected to close in the fourth quarter.

Cerro Colorado produced about 66,000t of copper last year, according to Chile's national copper commission.

BHP also owns 57.5pc of the Escondida mine in northern Chile, which produced 925,000t of copper last year, and the Spence mine, which produced 199,000t of copper last year.

BHP also owns 33.75pc of Antamina, a copper/zinc mine in Peru that produced 146,000t of copper in 2016.