Japanese conglomerate Mitsubishi has signed a Heads of Agreement to acquire an additional 21.9% equity interest in Anglo American‘s Quellaveco project (AAQSA) for $600m.

AAQSA owns the Quellaveco copper project in Peru.

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Mitsubishi already owns an 18.1% interest in the project through its stake in AAQSA and the latest acquisition will increase its holding to 40%.

“We are pleased to be able to extend our longstanding partnership with Mitsubishi and look forward to strong support for the development of Quellaveco.”

Once the deal is completed, Anglo American will retain a 60% interest in the project, which has a total valuation of $2.74bn.

Mitsubishi will make a payment of $500m upon completion of the transaction.

The remaining portion of the deal comprises payment of $50m when total ore treatment rates at Quellaveco reach at least 150,000t a day and $50m when rates touch at least 180,000t a day.

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Anglo American chief executive Mark Cutifani said: “The successful syndication of a 21.9% interest in Quellaveco confirms the world-class quality of our copper asset in Peru and aligns with our disciplined approach to how we allocate capital.

“We are pleased to be able to extend our longstanding partnership with Mitsubishi and look forward to its ongoing contribution and strong support for the development of Quellaveco.”

The proceeds from the sale of the interest will be used to pre-fund a portion of Anglo American’s share of the capital expenditure required to develop the Quellaveco project.

Scheduled to be completed in the third quarter of this year, the transaction is conditional upon receipt of regulatory approvals and Anglo American’s Board for the development of the project.