Abu Dhabi: Mubadala Development Company and Trafigura Beheer B.V, a firm involved in the trading of commodities, on Monday announced the signing of an agreement to create a 50/50 joint-venture company to invest in the base metals mining sector, including copper and zinc.
As part of the agreement, Mubadala will acquire 50 per cent share in Trafigura’s flagship mining operation Minas de Aguas Teñidas (Matsa), which owns the Agua Teñidas, Sotiel and Magdalena mines in southern Spain which produce copper, zinc and lead concentrates.
“Matsa has a strong competitive position and excellent expansion potential, with capacity expected to more than double over the next two years,” said Ahmed Yahia Al Idrissi, Chief Executive Officer, Mubadala Technology and Industry.
“Investing in Matsa is a key step in growing and diversifying our existing metals and mining portfolio.”
A two-year investment and expansion plan by Trafigura for Matsa is nearing completion and includes a new treatment plant which has close to doubled annual processing capacity to 4.4 million tonnes per annum.
Under the joint venture, day-to-day operations at Matsa will continue as usual, including existing terms and conditions for employees, contractors and suppliers, Mubadala said in a press statement.
“This builds on our existing sector strategy and partnership with Mubadala. We are identifying new opportunities and investing thoughtfully together, in ways that complement our existing portfolio,” said Jeremy Weir, Chief Executive Officer of Trafigura.
Owned by the government of Abu Dhabi, Mubadala manages a multibillion dollar portfolio of local, regional and international investments and partners with global organisations to operate businesses across a wide range of industry sectors including aerospace, semiconductors, metals and mining, oil and gas, renewables, information and communications technology, health care, real estate and infrastructure, utilities, and defence services.
