PAPUA NEW GUINEA and DRC – Integrated Chinese metal producer Zijin Mining Group is buying into a pair of projects in far-flung corners of the world. First, it has agreed to buy half of Toronto-based Barrick Gold's Porgera gold mine in Papua New Guinea. Second, it has agreed to buy half of Vancouver's Ivanhoe Mines' Kamoa copper project in the Democratic Republic of Congo.
Barrick is to receive US$298 million in cash for a 50% interest in the Barrick subsidiary that owns 95% of and operates the Porgera joint venture. The cash is welcome as Barrick tries to shed US$3 billion in debt this year. The two companies have signed a long term strategic co-operation agreement that outlines collaboration on future projects and joint investments.
Ivanhoe and Zijin have signed a strategic co-development agreement for the Kamoa copper project. Zijin will pay US$412 million for a 49.5% share of the Ivanhoe subsidiary that ownes 95% of and operates the Kamoa project. Payment will be made in the amount of US$206 million in cash when the deal closes, and the balance will be paid in five installments during 2015 and 2016.
More information about the Porgera mine Porgera mine is available on Barrick's website.
More information about the Kamoa project is posted on Ivanhoe's website.
See also ZijinMining.com.
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