Anglo-Australian multinational mining company Rio Tinto has agreed to purchase Canadian mining company PanAmerican Silver's stake in Agua de la Falda SA, a company with exploration permits in Chile's prospective Atacama region.
Rio Tinto also agreed to join forces with Chilean state-owned copper mining company Codelco to explore and develop Agua de la Falda's assets.
Under the agreement, Rio Tinto will acquire PanAmerican Silver's 57.74% operating stake in Agua de la Falda for $45 million and a grant of new smelter returns royalties.
The company will also acquire 100% of nearby concessions known as the Meridian Property for $550,000 and a grant of new smelter returns royalties.
The joint venture builds on an underground mining collaboration agreement between Rio Tinto and Codelco signed on Oct. 12, 2022, aimed at encouraging innovations and technology to improve safety, productivity and environmental, social and governance (ESG) outcomes.
'Copper is critical for the global energy transition, which is at the heart of Rio Tinto's strategy, and Chile is one of the most important sources of world supply as demand for copper in renewables and electrification grows,' Rio Tinto Chief Executive Jakob Stausholm was quoted as saying in the statement.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr