Vedanta has divested its stake in the Mt Lyell Copper Mine in Australia to New Century Resources.
| Vedanta |
The Indian mining giant announced the divestment in October 2021, saying that the mine was not strategic for the company due to its size and country presence. The mine has been on care and maintenance for the past five years.
Under the terms of the divestment, New Century Resources will have an option to purchase the mine outright after spending $10 million on development and exploration over the next two years. The company will also reimburse Vedanta for ongoing care and maintenance costs.
The divestment of the Mt Lyell Copper Mine is part of Vedanta's larger strategy to streamline its portfolio and focus on its core assets. The company has also divested its stake in other non-core assets in recent years, including its iron ore mines in India and its zinc mines in Ireland.
New Century Resources is a mineral exploration and development company focused on copper and gold projects in Australia. The company has a strong track record of successful mine restarts and is well-positioned to bring the Mt Lyell Copper Mine back into production.
The transaction is expected to close on or before December 31.