© Chris Wiedenhoff
EY Peru has advised Inversiones Alxar, a subsidiary of Chile’s Empresas Copec, in the acquisition of 40% stake in Cumbres Andinas, from Peruvian company Minsur. The $ 200m deal closed on May 23rd.
Cumbres Andinas is a Minsur subsidiary that owns Marcobre, managers of the Mina Justa copper project. The project, located in the province of Ica, Peru, will start operations in 2021, with a production capacity of 110,000 tons of fine copper per year over 18 years. It will require a $1.6bn investment and its construction is expected to begin in the second half of this year. In addition, as Minsur will maintain 60% of Cumbres Andina, Mina Justa will become a joint venture.
"This joint venture will be the cornerstone of our presence in copper mining in South America and gives us the possibility of developing a platform for future projects in Chile and Peru. Mina Justa will be a world class operation, open pit, high grade and low cost.” said Erwin Kaufmann, Alxar’s general manager.
The activities Cumbres Andinas are currently focused in conclude final budgets, designing works, supplying, awarding contracts and planning the initial construction.
EY Peru served as tax advisor, with a team led by partner Fernando Tori, assisted by Claudia Plasencia y Edwin Sarmiento.
Simpson Thacher & Bartlett, Portaluppi Guzmán y Bezanilla and Philippi Prietocarrizosa Ferrero DU & Uría acted as counsel to Inversiones Alxar and Copec.
Sullivan & Cromwell and Rodrigo and Elias & Medrano Abogados acted as counsel to Minsur and its subsidiaries.