Japan's JX claims its Pan Pacific Copper division sold stake in Peruvian mining to Glencore

JX Advanced Metals, a Japanese company, announced on Tuesday that its Pan Pacific Copper (PPC), unit had sold its entire stake to Swiss miner and trader Glencore in the Quechua copper project in Peru. The price was not disclosed.

JX is reorienting its portfolio away from mining and towards its advanced materials operations.

PPC has conducted several feasibility studies on the Quechua Project since 2007, but did not proceed to the development phase because it prioritized the Caserones Copper Mine in Chile.

PPC purchased the Quechua share, with estimated mineral reserves of over 260 million tons, for $40 million. The company had planned to begin production in 2012, and to target a 210,000 ton output of?copper concentrate, which is equivalent to 60,000 tones of copper.

JX stated that Glencore owned several mines and concessions near the Quechua Project.

Glencore did not respond to a request for comment immediately.

JX is the leading manufacturer of sputtering target materials, which are used to produce thin metal films for chip production.

After suffering heavy losses at the Caserones Mine, the company has changed its focus to?materials for smartphones, cars and telecommunications equipment.

JX owns 47.8% of PPC, Japan’s largest supplier for refined copper. Mitsui Mining and Smelting holds 32.2% and Marubeni 20%.

JX has a stake of 30% in the Caserones Mine, 12.52 % in the Los Pelambres Copper Mine?and 3.3% in the Escondida Copper mine in Chile.

JX has sold its interests in large-scale copper mines, while investing in smaller projects to ensure stable supplies of rare earths, minor metals and other resources for its advanced materials business.

A company spokesperson responded that no decision has been made but all options will be considered. (Reporting and editing by Thomas Derpinghaus; Yuka Obayashi)

(source: Reuters)