Codelco exploring for metals with MMX: report
Wednesday, 11 April 2012 | 00:00
Chile state copper company Codelco and Brazil's MMX Mineracao e Metalicos SA will explore for iron ore and copper, local newspaper La Tercera reported citing the Chilean giant's chief executive.
Codelco will also team up with London-listed Chilean miner Antofagasta PLC (ANFGY, ANTO.LN) to explore for copper and molybdenum in the northern regions of the country, the newspaper also reported.
Codelco, formally known as Corporacion Nacional del Cobre de Chile, is the world's largest copper producer and one of the largest producers of molybdenum and is looking to explore other metals, such as iron ore.
In the joint venture with MMX, signed in 2011, Codelco retained 49% in the Desierto project located in the coast of the Atacama region, while the company controlled by Brazilian billionaire Eike Batista held the remaining 51% stake.
"MMX is in charge of exploring; if it finds iron ore it will keep the joint venture's majority stake, but if it finds copper we will be the project's major shareholders", Diego Hernandez, Codelco's chief executive was quoted saying in the newspaper.
MMX aims to produce 10 million tons of iron ore in the Atacama region from 2016, La Tercera reported.
With Antofagasta, Codelco signed a joint venture in 2010 where the Luksic family-controlled company finances exploration costs in a Codelco-owned property near Antofagasta's Caracoles and Telegrafo deposits, a spokesman for the London-listed company told Dow Jones.
Antofagasta is exploring for copper and molybdenum, a metal used to harden steel, which is found in Chile as a byproduct at several copper mines.
At Codelco, a company official confirmed both the exploration ventures.
Source: Market Watch
There are no comments available.