2024-01-15 22:26:20
On December 17, Antofagasta Plc (Chile), the mining arm of the Luksic group, announced the acquisition of 19% of the Peruvian Compañía de Minas Buenaventura, through the secondary market of the Lima Stock Exchange (BVL), for more than US$500 million. Now, the executive president of the Chilean company, Iván Arriagada, explains the reasons for his entry into the ownership of the local precious metals producer.
When the news was made official, the president of Compañía de Minas Buenaventura, Roque Benavides, commented to Gestión that “the possibility of having an important shareholder who wants to develop projects is relevant and we value it very much.” As of the aforementioned operation, the Peruvian mining company’s stock rose from US$ 9.95 to US$ 12.50 (on December 17, 2023), increasing by 25.63%, according to data from the BVL.
What is the acquisition objective? For Arriagada, the transaction aligns with the strategy of growing in copper and in American countries. In Peru, he recalled that the Chilean firm has more than 50,000 hectares of mining property where they carry out exploration.
Along these lines, entering Buenaventura fits because this company is in the transition from being a producer mainly of gold to becoming a player in the copper market. Among its assets, its 19% stake in the Cerro Verde copper mine (Arequipa), controlled by Freeport, stands out.
READ ALSO: Buenaventura: What does the acquisition of its shares by the Antofagasta mining company imply?
Antofagasta’s next steps in Peru
Regarding the statements of Roque Benavides, who considered that the aforementioned Antofagasta operation “was neither hostile nor friendly,” Arriagada observed rather that the transaction is good news for Buenaventura due to the interest in working in collaboration with the Peruvian company to develop its potential.
Going forward, are you looking to take control of the company? Currently, the executive indicated that they are in the stage of collaborating with the Buenaventura administration to fully understand its potential. In addition, he recalled that they are talking regarding having representation on the firm’s Board of Directors, he told La Tercera, from Chile.
READ ALSO: Buenaventura sees Chilean Antofagasta as an ally following share purchase
Other Antofagasta investments
In the last five years, Antofagasta has been investing between US$ 1,400 million and US$ 2,000 million each year. For 2024, the company has not yet officially announced its plan, but the Chilean media predicts that 2024 will be a record year of investments for the Luksic group in mining if the annual trend is followed. The disbursement would be reported at the end of January.
During 2023, the company invested at least US$2,000 million and Arriagada announced that they expect this amount to be greater in 2024.
READ ALSO: Buenaventura share climbs 25% following sale of stake to Antofagasta
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