This article was published on Jan. 16, 2025, at 4:34 p.m. on the CHOSUNBIZ MoneyMove site.
The Korea Mine Rehabilitation and Resources Corporation is pushing to sell the Boleo copper mine in Mexico, which began commercial production in 2015. The Boleo copper mine is a large-scale mine where the corporation invested $1.4794 billion (approximately 2.1532 trillion won). The corporation formed a consortium with domestic large companies to finance the mine development project in 2008.
According to investment banking (IB) industry sources on the 16th, the Korea Mine Rehabilitation and Resources Corporation has selected EIP Asset Management and Canadian Imperial Bank of Commerce subsidiary CIBC Capital Markets as co-advisors for the joint sale of the Boleo mine and has distributed teaser letters to potential buyers. Separately, the advisors are reportedly contacting overseas development companies to inquire about their acquisition intentions.
The sale object is the 88.06% equity stake in Minera y Metalurgica del Boleo (MMB) that the corporation holds directly and indirectly. MMB is the operating company that holds 100% of the Boleo mine project. According to the shareholders' agreement, another shareholder, Korean Boleo Corporation (KBC), and Canadian Camrova Resources Inc. can exercise tag-along rights.
KBC is a company established for participation in the Boleo mine project alongside LS MnM, Hyundai Steel, SK Networks, and LOTTE ENERGY MATERIALS with the Korea Mine Rehabilitation and Resources Corporation. The corporation has reportedly repaid nearly 900 billion won in joint guarantee debt last year to facilitate the sale of the Boleo mine.
The Boleo copper mine, located in the Mexican mining district, produces strategic minerals such as copper, cobalt, and zinc. The estimated reserves are 150 million tons. Key highlights of the transaction include its own infrastructure. According to the teaser letter, the Boleo copper mine is equipped with a dedicated port, its own power facilities, and adjacent highways. Furthermore, there are still areas where exploration is ongoing, and the lifespan of the mine is estimated to be over 15 years.
Initially, the Korea Mine Rehabilitation and Resources Corporation planned to significantly streamline its overseas mines, but as the importance of core mineral supply chains grew, it selected only the Boleo mine and the Narabri and Australian Togranos coking coal mines as the targets for sale. The sale process for the Togranos coking coal mine is currently underway, with Hyosung, Dongbu Construction, and the Korea Mine Rehabilitation and Resources Corporation putting a total of 25% of their equity stake in the Australian joint venture up for sale.
The sellers plan to grant access to a virtual data room (VDR) for corporate due diligence only to potential buyers who have submitted letters of intent (LOI). They plan to receive binding bids by the 6th of next month and then select a shortlist of eligible candidates.