London — Mayer Brown has advised Sumitomo Metal Mining Co., Ltd. (acting in a consortium with its partner, Sumitomo Corporation) on the acquisition of a 30 percent indirect interest in Compañia Minera Teck Quebrada Blanca S.A., which owns the Quebrada Blanca Phase 2 (QB2) project, from Teck Resources Limited for $1.2 billion.
The QB2 project is the second phase of the Quebrada Blanca copper mine in Chile.
The consideration payable by Sumitomo Metal Mining and Sumitomo Corporation consists of a $800 million earn-in contribution and a $400 million matching contribution made through a jointly held entity. Further supplemental payments will be made upon the mine achieving agreed throughputs and following a major project expansion.
The initial proceeds of the transaction will be used to fund construction of the project, with the first production targeted for the second half of 2021. The mine is expected to produce 316,000 tonnes per annum of copper equivalent in the first full five years.
The Mayer Brown team was led by head of the Africa and Mining practices Ian Coles, Corporate & Securities partner Rob Hamill (both London) and Satoru Murase (New York) and included: Corporate & Securities partners Connor Cahalane, Rebecca Bothamley (both London) and Thomas Moore (Houston), senior associate Harriet Hainsworth (London), associates Stefania Alessi and Omar El-Khattabi (both London) and trainee solicitor Abbey Dalgleish (London); Banking & Finance partner Rachel Speight (London); and Construction & Engineering partner Jonathan Hosie (London).