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1) Chinese mining company MMG has agreed to acquire Cuprous Captial, the owner of Botswana's Khoemacau copper mine, in a deal that's valued at $1.88 billion. The move comes as MMG has actively sought copper assets due to the rising demand for the metal, particularly in the context of green energy initiatives. The shares of MMG soared 7.5%, hitting a peak not seen in the past 2 months. MMG's chairman, Jiqing Xu, emphasized the strategic significance of the Khoemacau mine acquisition, highlighting its alignment with the company's vision of becoming a prominent global mining entity contributing to a low-carbon future and creating substantial value for its shareholders. This acquisition is crucial for Chinese smelters, facing challenges in securing copper concentrate, especially as demand continues to outpace mining output growth. The Khoemacau mine, situated in the Kalahari Copper Belt, is a significant source, currently producing 60,000 tons of copper and 2 million ounces of silver annually. However, potential investments could elevate its output to 130,000 tons of copper and 5 million ounces of silver per year. Anticipated to conclude in the first half of 2024, the transaction involves Macquire Captial and Citigroup as MMG's joint financial advisors, solidifying the company's strategic move in the copper market amidst the burgeoning demand for the essential metal.
2) Codelco, the world's largest copper supplier, plans to inject an additional $720 million into revamping its oldest mine, Chuquicamata, in a bid to address project delays and production decline. Already allocating $5.7 billion for converting the mine from open pit to underground and an ongoing $1.3 billion for related infrastructure, the company now seeks environmental approval for design adjustments and complementary works. This additional spending won't extend Chuquicamata's capacity or lifespan, reflecting the challenges in constructing mines amidst heightened social and environmental scrutiny, declining ore quality, and escalating costs. Teck Resources faced a $4 billion cost overrun in expanding its Quebrada Blanca in Chile, citing similar challenges alongside higher interest rates and reduced metal prices, adding additional hurdles. Under new CEO Ruben Alvarado, Codelco aims to restore production to pre-pandemic levels of 1.7 million tons annually by the decades end, recuoerating from the current 1.3 million tons, the lowest in 25 years. Alvarado's management overhaul seeks to accelerate project completions within Codelco's $40 billion plan to modernize aging mines, compensating for years of inadequate investment.