Australian Miner Places $2 Billion Copper Bet on Green Energy Transition

  • Oct 14, 2021
  • Investing

South32 Ltd. bet on copper being in hot demand in an accelerating global energy transition with an investment of up to $2.05 billion in a Chilean copper mine, as big miners pivot to metals needed for electric vehicles and renewable energy infrastructure.

The Australia-based mining company—which has assets in the U.S. and Brazil, among other places—on Thursday said it would buy a 45% stake in the Sierra Gorda copper mine in the Antofagasta region of northern Chile for an upfront cost of $1.55 billion and future sum of up to $500 million linked to production rates and metal prices. It agreed to purchase the stake from Japan’s Sumitomo Metal Mining Co. Ltd. and Sumitomo Corp. The other 55% of the mine is owned by Poland’s KGHM Polska Miedz SA .