Exclusive: Miners seek partners for copper assets as M&A heats up – by Clara Denina, Divya Rajagopal and Julian Luk (Reuters – October 11, 2023)


LONDON, Oct 11 (Reuters) – A flurry of copper mining deals are being lined up for the next six to 12 months, industry sources said, as producers seek to spread the soaring cost of new projects for the metal key to the energy transition.

The capital needed to develop new mines has shot up some 50% to between $3 billion-$4 billion on average in recent years, fuelled by declining ore grades, stricter environmental requirements and rising labour costs.

Copper producers increasingly want to share the risk and costs of projects, and the sector has already seen a jump in M&A activity, which more than doubled year-on-year to $14.24 billion in 2022.

But big-ticket M&A is not the only solution to rising costs, and partnership deals are also being mooted, five sources familiar with the matter said.

For the rest of this article: https://www.reuters.com/markets/deals/miners-seek-partners-copper-assets-ma-heats-up-2023-10-11/#:~:text=LONDON%2C%20Oct%2011%20(Reuters),key%20to%20the%20energy%20transition.