Anglo American has agreed to Mitsubishi Corp.’s proposed $600 million acquisition of a 21.9% equity interest in Anglo American Quellaveco S.A., which owns the Quellaveco copper project in Peru. Mitsubishi already holds an 18.1% interest in the project and, following closing of this transaction, Mitsubishi’s interest will increase to 40%. Anglo will retain 60%.

Mistubishi will pay $500 million upon closing, $50 million upon total ore treatment rates at Quellaveco reaching at least 150,000 metric tons per day (mt/d); and $50 million upon total ore treatment rates at Quellaveco reaching at least 180,000 mt/d. The total consideration values Quellaveco at $2.74 billion.

“The successful syndication of a 21.9% interest in Quellaveco confirms the world-class quality of our copper asset in Peru and aligns with our disciplined approach to how we allocate capital,” said Mark Cutifani, CEO of Anglo American. “We are pleased to be able to extend our longstanding partnership with Mitsubishi and look forward to its ongoing contribution and strong support for the development of Quellaveco.”

The transaction is expected to close in the third quarter of 2018 and is subject to required regulatory approvals, approval by Mitsubishi’s board, and approval to develop the Quellaveco project by Anglo American’s board.