China's Zijin to buy stake in Ivanhoe's DRC copper project

Tue May 26, 2015 7:30am EDT
 
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LONDON May 26 (Reuters) - Chinese mining company Zijin Mining Group has agreed to buy almost half of the Kamoa copper project in the Democratic Republic of Congo (DRC) from Ivanhoe Mines for $412 million, the companies said on Tuesday.

Under the deal, Zijin will buy through its subsidiary, Gold Mountains International Mining Company Limited, a 49.5 percent stake in Ivanhoe Mines' subsidiary Kamoa Holding Limited, which currently owns 95 percent in the DRC copper project.

The mining sector has been hit in the last three years by a steep decline in metals prices but copper is seen by analysts as one of the commodities with the brightest prospects given some supply constraints.

Zijin has also recently purchased a 9.9 percent stake in Ivanhoe mines and the Porgera gold mine in Papua New Guinea from Barrick Gold. (Reporting by Silvia Antonioli; Editing by Mark Potter)