24.3 C
Belgrade
Supported byspot_img
spot_img

Rio Tinto copper asset deals in Serbia triggers BHP copper earn-in project in Canada

Member of Europium Groupspot_img
Supported byspot_img

Earn-in agreements allow mining majors to secure stakes in promising early-stage projects for relatively limited up-front risk. They were fairly common when metal prices soared through much of the last decade, but have become rare in the last few years for both base metal and precious metal assets.

The Canadian arm of mining giant BHP Billiton (BHP.AX) has signed a letter of intent to help fund exploration at Aston Bay Holdings Ltd’s (BAY.V) Storm copper project, Aston Bay said on Thursday. Under terms of the preliminary deal, BHP could earn a 75 percent interest in Storm, located in Canada’s far north territory of Nunavut, if it spends a minimum of C$40 million on exploration over the next few years, writes Reuters.

The latest move by BHP comes close on the heels of similar moves by rival Rio Tinto (RIO.L)(RIO.AX), which recently inked similar deals involving the copper assets of two Canadian juniors.

Supported by

The developments indicate the majors are beginning to be concerned about their long-term copper project pipeline as supply-demand fundamentals in the commodity remain fairly tight despite the slide in the price of copper.

In November, Avala Resources Ltd (AVZ.V) announced an earn-in agreement with Rio on its Lenovac project, located in Serbia, coming days after Rio signed a similar deal with Reservoir Minerals Inc (RMC.V) on its Timok Magmatic Complex in Serbia.

Both assets are located near the promising Cukaru Peki deposit in Serbia, part of a joint venture Reservoir has with Freeport-McMoRan Inc (FCX.N). That deposit has shown promising results, leading to heightened interest in the region.

 

Supported byElevatePR Digital

Related News

Canada Nickel reveals initial resource estimate for Deloro project, underscoring Timmins District prospects

Canada Nickel has announced the initial mineral resource estimate for its Deloro nickel sulphide project, located in Ontario's Timmins-Cochrane mining camp. This estimate marks...

Resouro Strategic Metals unveils extensive resource estimate for Tiros titanium and rare earths project

Resouro Strategic Metals, a recent entrant into Brazil’s rare earths sector, has unveiled a significant resource estimate for its Tiros project located in Minas...

NMMC targets $1 billion investment in 2024 to expand gold production capacity

Navoi Mining and Metallurgical Combine (NMMC), the world’s fourth-largest gold producer and Central Asia’s largest gold miner, has announced an ambitious investment program for...

U.S. and Kazakhstan strengthen energy partnership at 2024 Strategic Dialogue in Astana

On July 18, 2024, the U.S. Department of State and the Department of Energy, in partnership with Kazakhstan’s Ministry of Foreign Affairs and Ministry...
Supported by
Supported by
Supported by
error: Content is protected !!