Building activities at Côté Gold, located in the Abitibi gold belt in Ontario, were slated to start in the first months of 2019, with pre-production beginning in late 2020.
Sumitomo Mining News
Sumitomo Metal Mining and Sumitomo Corp. will pay $800 million earn-in contribution and $400 million matching contribution for a third of Teck's 90% interest in Quebrada Blanca mine.
The Australian miner was able to raise almost $1.3 million to help fund the acquisition of its first overseas asset.
Sumitomo’s move comes as Japanese trading companies have been grabbing assets and increasing their stakes on a few of them thanks higher commodities prices, which have boosted their profits.
Neighboring Guinea is now China’s largest supplier of bauxite after overtaking Australia in 2017.
Company expects Côte Gold project to create as many as 1,200 jobs during the construction phase, estimated to last two years.
With the completion of the Japanese firm acquisition of 30% of Côté Gold Project, IAMGOLD's liquidity now exceeds $1 billion.
The deal comes as Sumitomo, Japan’s top gold miner, looks to boost its output through acquisitions and exploration.
Sumitomo Metal Mining Co, the copper and nickel producer that also owns Japan's only gold mine, is scouring the world for bullion deals as assets become more affordable.
Morenci is an open-pit, copper mine located in Arizona. In 2015, FCX’s 85 percent share of Morenci revenues totaled $2.2 billion and production and delivery costs totaled $1.5 billion.