+1-888-308-5802     
News Contact Us

BHP buys stake in SolGold copper project in Ecuador for $35 million

Author : Pankaj Singh | Published Date : 2018-09-07 

The leading mining company BHP has recently signed a deal with SolGold, the Australian gold and copper mining company to earn a 6.1% stake in the latter. The deal, in which BHP will be paying $35 million for the stakes, will ensure that BHP earns a share in the copper-gold project, Cascabel, Ecuador.

The Cascabel project is anticipated to be the biggest gold-copper project ever discovered. The acquisition by BHP was viewed as a vote of confidence in the project by the market and consequently SolGold’s share price escalated by approximately 17%.

Andrew Mackenzie, CEO, BHP, has been reported to say that the deal is expected to provide BHP with a promising exposure to a lightly prospective location and a high-quality copper exploration project.

Incidentally, BHP along with other mining companies recovered after the price crash in 2015-2016 and is now looking to expand its asset base with special focus on copper. Mining companies are increasingly investing in acquiring copper mines as electric vehicles and renewable energy has created demand for the metal, the requirement of which is expected to far surpass its supply by 2020. 

According to analysts, the deal has created a setting for a veritable showdown between top SolGold shareholder Newcrest Mining Ltd – an Australian gold mining company with 14.54% stakes in Cascabel, making it the majority owner and operator.

Prior to the completion of the current deal, SolGold rejected an offer by BHP to purchase 10% stake in the firm for $30 million in October 2016. SolGold also rejected an offer of $275 million by BHP to acquire 70% stakes in Cascabel as the company did not want to lose control of the mine.

Experts of the opinion that SolGold will display a closer affinity with Newcrest due to the fact that Newcrest is among the rare miners that have experience in block caving, a method that involves urging the collapse of an ore body with its own weight by hollowing it out.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Chipmaker TSMC mulls over Germany for first Europe chip plant

Published Date: 2021-07-27         Author: Pankaj Singh

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) stated that it is too early to talk about its factory expansion in Germany and that the talks are in the initial phases as the European Union seeks to reduce chip imports amid the supply shortage. The European Commission had conducted discussions w... Read More

COVID-19 cases surge in Australia, police warn of protest repeat

Published Date: 2021-07-26         Author: Pankaj Singh

Despite a weeks-long stay-at-home order, Australias most populated state reportedly recorded an increase in new COVID-19 cases, and police swore to suppress any recurrence of the raucous anti-lockdown rally over the weekend. New South Wales, which had imposed a lockdown in Sydney to curb the wide... Read More

LG commits to sustainability mission, aims to go 100% renewable by 2050

Published Date: 2021-07-23         Author: Pankaj Singh

South Korean multinational electronics firm LG Electronics Inc. recently announced its plans to transition to 100% renewable energy by 2050 as part of its sustainability strategy. For the record, the firm had earlier committed to carbon neutrality via the Zero Carbon 2030 initiative, which aims t... Read More

© 2021 Fractovia. All Rights Reserved