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EMR Capital to buy Australian copper mine

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EMR Capital has agreed to buy Australia's Mt. Gordon copper mine from its current owner, India's Aditya Birla Minerals, for A$15 million ($10.8 million).

According to a statement, EMR will buy 100% of the shares in Aditya Birla's subsidiary Birla Mt. Gordon, which operates the mine. EMR will also acquire all financial assurance bonds in relation to the company, for about another A$41.7 million. The GP will acquire the shares through its subsidiary Lighthouse Minerals Holdings.

The deal is expected to conclude by the end of October, subject to regulatory approval. EMR Executive Chairman Owen Hagarty will take over as chairman of the board.

Aditya Birla shut down the Mt. Gordon mine and placed it under care and maintenance in 2013 amid falling copper prices. EMR hopes to reactivate it and turn it into a mid-tier copper producer.

EMR is highly involved in Australian mining investments; earlier this year it announced a final close of $450 million on its specialist mining fund, with a remit to invest in copper, gold, coking coal and fertilizer potash mining operations. It also agreed to serve as cornerstone investor for a A$120 million share placement by Spanish potash developer Highfield Resources in May.

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