Zijin Mining expands with the acquisition of La Arena Mine

Jinteng Mining, a subsidiary of Zijin Mining Group, has officially taken ownership of the La Arena open-pit copper-gold mine in Peru from Pan American Silver.

Deal Highlights

• USD $245M cash purchase + a 1.5% life-of-mine gold royalty from La Arena II project.
• Contingent payment of $50M once commercial production at La Arena II starts.
• Pan American retains 60% rights to future copper concentrate from La Arena II for North American markets.

About La Arena

• Located in La Libertad province, Peru.
• Operates since 2011, processing 36,000 tonnes of ore daily.
• Annual production: ~3 tonnes of gold.
• Mine life extended from 2021 to 2026, with further exploration potential.

Strategic Importance

This acquisition boosts Zijin Mining’s copper and gold reserves, aligning with its growth strategy. La Arena II’s advanced exploration stage offers potential resource expansion, utilizing open-pit mining and flotation techniques in a region rich with mineral deposits.

Pan American’s Portfolio Shift

Following its $4.8B acquisition of Yamana Gold, Pan American is optimizing its portfolio, recently selling:

• Mara project (Argentina) to Glencore for $475M.
• Morococha mine (Peru), reducing annual development and maintenance costs by $15.7M.

This deal showcases Zijin’s commitment to growth while Pan American focuses on core operations. A win-win for both giants in the mining industry