Mubadala Investment Company and Trafigura confirm the acquisition of 100 percent of Minas de Aguas Teñidas (MATSA) by Sandfire Resources for USD1,865 million. The transaction is expected to complete in Q1 2022, with key conditions precedent including Spanish Foreign Direct Investment and anti-trust merger approval.

Sandfire Resources is an Australian mining and exploration company listed on the Australian Securities Exchange (ASX Ticker: SFR). Sandfire has a strong operational base and a clear strategy to grow into an international diversified and sustainable mining company. Sandfire’s business is underpinned by a demonstrated commitment to high standards of safety, responsibility and sustainability.

Sandfire operates the high-margin DeGrussa Copper-Gold Mine, located 900km north of Perth in Western Australia, which produces high-quality copper-in-concentrate with significant gold credits. Sandfire also runs successful exploration and business development programs, delivering a global project development pipeline that spans the world’s major continental zones.

Danny Dweik, Head of Industrials at Mubadala said:“MATSA is one of the world’s highest quality copper mines, with strong and experienced executive leadership and more than two thousand highly skilled and productive employees. During the next decade, the company will significantly benefit from global decarbonization initiatives and we see a bright future for them as part of Sandfire Resources.”

“Today’s announcement is the culmination of significant investment in the MATSA mining complex by both Trafigura and Mubadala Investment Company to develop a world-class mining asset with a highly experienced workforce,” said Jeremy Weir, Executive Chairman and Chief Executive Officer, Trafigura.

“As a long-term owner of the operation, we are pleased that MATSA will become a cornerstone asset in Sandfire’s growing portfolio, at a time when the energy transition is driving significantly higher demand for copper and other strategic metals.”

As part of the transaction, Trafigura will retain the life of mine concentrate offtake agreement for 100 percent of offtake from MATSA, building on Sandfire’s already well-established relationship with Trafigura.

UBS and BMO Capital Markets acted as M&A advisors to Trafigura and Mubadala Investment Company.