A recent American media report stated Hudbay may purchase a Chilean copper mining company.
According to Bloomberg News, the company is in negotiations to purchase Mantos Copper SA, a private equity-backed company that owns and operates two mines in Chile at Mantos Blancos and Mantoverde. According to the company’s website, the two mines combine to employ more than 2,000 people and produce more than 100,000 tons of copper a year.
Mantos’ website states that the company plans to expand its operations at both mines, a project that could cost up to $1 billion to finish.
Hudbay released a statement after the Bloomberg News story was issued on Oct. 4, neither confirming or denying that a deal was in the works with Mantos.
“While the company’s policy is to avoid comment on speculation and rumours, Hudbay emphasizes that it has had a consistent strategy of optimizing the value of its current operations and evaluating growth opportunities that are complementary to its current business and that it continues to adhere to this strategy,” reads the statement.
The Bloomberg News story also includes excerpts from a letter written by Waterton Global Resource Management, one of Hudbay’s major shareholders, urging Hudbay to “immediately terminate” talks to buy Mantos.
“Any acquisitions would ensure that Hudbay retains the financial flexibility and management capacity to maximize the value of its assets and existing growth opportunities,” reads the Hudbay statement.
