The deal also allows Lundin the right to purchase an additional interest of up to 19% in the Caserones mine for $350 million over five years, the company added.
Copper helps reduce carbon emissions and lowers the energy required to produce electricity.
"The initial controlling interest increases our exposure to what we believe is a growing top-tier copper mining district. We retain the option to further increase our ownership over the next few years at an attractive price," Peter Rockandel, chief executive of Lundin Mining, said.
For JX, the stake sale, to be completed by June, is part of
an asset portfolio review, the Japanese company said, adding
that it is looking to focus on the advanced materials business
while controlling volatility in its resource business.
"We are not exiting from copper mining," a JX spokesperson
said, adding the collaboration with Lundin is expected to
generate synergy in productivity and cost competitiveness as the
Canadian miner has several copper deposit projects near the
Caserones.
The mine in the arid mountains of northern Chile has
suffered a series of ramp-up delays and cost overruns,
highlighting the challenges faced by miners in the country, as
they shift through far-flung locations with accessible deposits
largely being tapped out.
The mine's annual output of copper concentrates has
stabilised at around 100,000 tonnes in recent years.
Eneos said it will book an operating loss of 70 billion
yen ($536 million) in the current financial year ending March
31 from the deal, based on the fair valuation of Lumina Copper's
assets and liabilities. It stuck to its full-year profit
forecast.
Another Japanese miner, Sumitomo Metal Mining Co Ltd also sold its stake in Sierra Gorda copper mine in
Chile last year after suffering huge writedown losses due to a
slow ramp-up.
($1 = 130.6600 yen)
(Reporting by Kanjyik Ghosh in Bengaluru and Yuka Obayashi in
Tokyo; Additional reporting by Akriti Sharma; Editing by Dhanya
Ann Thoppil and Eileen Soreng)
