Private equity house EMR Capital has purchased an 80 percent stake in a Zambian copper mine from African Rainbow Minerals (ARM) and its partner for $97.10 million, ARM said on Tuesday.
The 80 percent indirect interest in Lubambe Mine, held equally by ARM and Vale International includes the equity holding in Lubambe Mine as well as loans to the mine, and will be settled in cash contingent on certain conditions being met, ARM said in a statement.
“We are pleased to enter into an agreement to acquire Lubambe which offers exceptional quality and growth potential and which will substantially enhance the value and depth of our copper portfolio,” EMR Chief Executive Officer Jason Chang said.
EMR has closed its second private equity fund, EMR Capital Resources Fund II at $860 million. It bought copper zinc mine Golden Grove from MMG in December.
“EMR will continue to focus on copper, gold, potash and coking coal acquisition opportunities globally,” it said.