Nickel Asia unit buys 20 percent of Kazakhstan copper mine

MANILA, Philippines — A unit of listed mining firm Nickel Asia Corp. (NAC) has completed the acquisition of a 20-percent stake in a Kazakhstani copper mine, as it broadens its mining portfolio amid the all-time high price for the mineral. The company said that its Singapore subsidiary, NAC Global Investments Pte. Ltd. (NAC Global) has completed the purchase of the 20 percent membership interest in East Copper Production LLP. NAC added that the transaction allows it to indirectly gain immediate exposure to elevated copper prices without greenfield development risks. It noted that the purchase would allow the company to strengthen its earnings and align with its long-term outlook for copper demand. “The completion of the acquisition comes as global copper prices reach near-record highs, driven by AI datacenter expansion, electric vehicles and power-grid modernization,” the company said. East Copper is a Kazakhstan-based entity that owns 100 percent of GRK MLD LLP, which currently holds subsoil use rights for the Karchiga copper mine in the Kurchum district of Eastern Kazakhstan. The shares were acquired after the NC Global signed a sales purchase agreement (SPA) with Silk Road Resources Ltd. The transaction costs totaled $30 million. An initial payment of $10 million was made by NAC earlier this year following the completion of due diligence, while NAC Global settled the remaining $20 million upon the satisfaction of all closing conditions under the SPA. “The closing follows the completion of due diligence and satisfaction of all closing conditions under the membership interest and SPA,” the company said. NAC said the Karchiga mine sits within the Central Asian Orogenic Belt, an area globally recognized for its high concentration of copper resources. The copper mine has an annual production capacity of 8,500 tons of copper sulfide concentrate at an average grade of 1.8 percent, as well as 2,000 tons of copper cathode with an average grade of one percent. Information Source: Philstar Business