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First Quantum explores selling minority stake in Argentina's Taca Taca

The process is early-stage and First Quantum would need about $4.2 billion upfront to support a 40 million tonne per year operation at peak.

Reported · Written up by our desk · Mining

First Quantum Minerals is exploring the sale of a minority stake in its Taca Taca copper project in Argentina, according to Mining.com, citing a Bloomberg report that described a process for the potential transaction.

Potential bidders include Rio Tinto, along with Japanese trading houses Mitsubishi Corp. and Mitsui & Co., the report said. First Quantum and Rio Tinto declined to comment, and no deal is guaranteed as the effort remains at an early stage.

The company is pursuing the potential partnership as developing a project of Taca Taca’s scale would require large capital outlays, and majors are increasingly looking to spread development costs and risk.

Taca Taca, near the Chilean border, is expected to produce more than 320,000 tonnes of copper annually at peak, and First Quantum’s plans call for initial investment of about $4.2 billion for a 40 million tonne per year operation, with higher spending expected for a potential expansion to 60 million tonnes annually.

Latest closeCopper $6.367 ▲2.1%

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