Hindustan Copper-Nalco eye Peru copper asset: Sources

Hindustan Copper and Nalco joint venture is in talks to buy a copper reserve in Central Eastern Peru, three independent sources close to the development told ET NOW. The companies are doing a technical evaluation of the mining reserve, sources say the deal size could be close to $450 mn.

Hindustan Copper stock was trading up 17.83% at Rs 465.60/share on the BSE at 2:15 pm on Wed, Sep 1, 2010. Nalco was trading up 1.07% at Rs 402.50/share when this article was written.

The Peru mine is operational and has estimated reserves of 920 million tones of copper ore, the mine has the capacity to produce 45 million tones for 20 years. The acquisition could be under the joint venture between Nalco and Hindustan Copper with a 45:55 holding.

The joint venture was formed to acquire overseas mines, for Nalco it will be a diversification into another metal. Hindustan Copper is in the process of a follow-on-public offer and this acquisition may give a boost to it’s valuations.

Management of Hindustan Copper and Nalco declined to comment on the development.