Mining major Vedanta (VEDL), a subsidiary of London-headquartered Vedanta Resources (VRL), has divested its stake in Mt Lyell Copper Mine in Australia to New Century Resources.
This came after New Century Resources, a wholly-owned subsidiary of Sibanye-Stillwater Group, exercised an option to acquire the mine on Wednesday.
Mt Lyell Copper Mine in Australia is owned by Monte Cello BV, a wholly-owned subsidiary of VEDL. The copper asset has been on care and maintenance for the last seven years and was not strategic for Vedanta with its size and country presence, it said in a regulatory update.
In October 2021, Vedanta’s wholly-owned subsidiary Monte Cello BV had entered into an option agreement with New Century Resources to divest Copper Mines of Tasmania (CMT). The terms of the transaction include $10 million payment by New Century to VEDL’s subsidiary Monte Cello BV (MCBV), replacement of closure bond of $4.5 million followed by $10 million payment on CMT achieving its first commercial production.
MCBV is also entitled to receive a royalty consideration based on future revenues of CMT. The transaction is expected to be completed on or before December 31.