EMR buys Australian precious metals mine for $210m

MMG launched a sale process after deciding the asset was not core to the development of its mining asset portfolio. The proceeds will be used to pay down a debt facility with China Development Bank and Bank of China that matures in June, according to a filing.

Golden Grove is located approximately 450 kilometers north of Perth and comprises two mines producing zinc concentrate, copper concentrate and other precious metals. It produced 55,131 tons of zinc and 26,048 tons of copper in 2015, and is projected to produce 45,000-55,000 tons and 10,000-12,000 tons of each in 2016.

The facility commenced operation in 1990 and most of its products are sold to smelters in China, Japan, India, Thailand and Australia. The book value of the asset was around $188.3 million in June 2016, although it posted a net loss of $14.7 million and $21.7 million in 2014 and 2015, respectively.

Resources-concentrated EMR closed its second fund at $860 million in November, almost double the $450 million raised for the first vehicle. The firm expects to make no more than six control investments from Fund II. Copper, gold, coking coal and potash will remain areas of focus.

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• Topics
• Australasia
• Industrials
• Buyouts
• EMR Capital
• Commodities
• Australia