Sandfire Resources entered into a binding sale and purchase agreement with Trafigura and Mabudala Investment Co. to acquire all of Minas De Aguas Tenidas (MATSA) for $1.865 billion. The transaction is expected to be completed in the first quarter of 2022.

The transaction includes the MATSA mining complex in the Iberian Pyrite Belt in Spain, which comprises three underground mining operations feeding a world-class 4.7-million-metric-ton-per-year (mt/y)-central processing facility with state-of-the-art infrastructure producing 100-120 kilotons per year of copper equivalent per year.

“The MATSA acquisition transforms Sandfire into a first-quartile copper producer of global scale and allows us to leverage our skill set to deliver on our growth ambitions to create one of the highest quality and most compelling copper exposures on the ASX,” Sandfire Managing Director and CEO Karl Simich said.

Sandfire said it intends to retain MATSA’s in-country management team.

“MATSA is one of the world’s highest quality copper mines, with strong and experienced executive leadership and more than 2,000 highly skilled and productive employees,” Danny Dweik, head of industrials at Mubadala, said. “During the next decade, the company will significantly benefit from global decarbonization initiatives and we see a bright future for them as part of Sandfire Resources.”

As part of the transaction, Trafigura will retain the life of mine concentrate offtake agreement for 100% of offtake from MATSA, building on Sandfire’s established relationship with Trafigura.

“Today’s announcement is the culmination of significant investment in the MATSA mining complex by both Trafigura and Mubadala Investment Co. to develop a world-class mining asset with a highly experienced workforce,” Trafigura Executive Chairman and CEO Jeremy Weir said. “As a long-term owner of the operation, we are pleased that MATSA will become a cornerstone asset in Sandfire’s growing portfolio, at a time when the energy transition is driving significantly higher demand for copper and other strategic metals.”