Hudbay is out of the running for a massive copper mine in Chile with news that a 50 per cent stake in the project will be sold to a domestic producer.
Barrick Gold struck a tentative deal last week with Chile-based Antofagasta PLC, which is to pay US$1 billion in cash for the stake, reports the Financial Post.
“Antofagasta is arguably the most logical buyer given its deep experience and expertise in Northern Chile,” wrote the Post’s Peter Koven.
The deal will produce a joint-venture partnership with Antofagasta as operator of the Zaldivar mine and Barrick nominating half the members of a six-member board to oversee the joint venture, the Northern Miner reported.
Sources had told media outlets that Hudbay was among the prospective buyers for all or a portion of the mine. Other companies mentioned included BHP Billiton, Teck Resources and China Molybdenum.
