The head of Toronto-based Hudbay Minerals said BHP’s recent bid for Anglo American has “increased the valuation of copper assets,” reported Reuters.
“[It also] highlights that major mining companies believe the price for copper will be significantly higher than current levels and they are willing to pay a premium to acquire existing copper production today,” said Hudbay CEO Peter Kukielski, noting that the company plans to launch a formal sale process for a minority stake in its Copper World complex later this year.
Hudbay anticipates that Copper World, which is located in Arizona, will annually produce an average of 92,000 metric tons of copper over the first 10 years. Total initial cost for phase 1 is expected to be C$1.3 billion ($950.6 million).
Reuters noted that Canada’s copper miners are seen by analysts as potential acquisition targets for large mining groups due to an increase in demand for the metal.
However, Kukielski is not concerned. “I am never worried about Hudbay being a takeout target as our primary focus is to continue delivering on our plan to create shareholder value,” he concluded.
Source: Reuters