Freeport to grant Ludin stake at Candelaria copper mine at $1.8 billion

Author: Paul Ploumis07 Oct 2014 Last updated at 05:59:31 GMT

SANTIAGO (Scrap Monster): This procedure according to the US based company, Freeport, the largest copper mining firm in the US under the market value as well as revenue, would definitely help in resolving the debts as well as to turn the focus of the firm towards the US.

Last year, Ludin Mining Corp produced about 116,592 metric tons of copper from the mines located in Congo, Portugal and Spain, and also owns minority stake in the Freeport copper mine. As soon as the copper mining acquire 80 percent stake in the copper mine, the company would start reforming the mine to achieve estimated 124,800 tonnes of copper by the next financial year.

Sumitomo Corp of Japan will continue to hold the remaining 20 percent stake of the mine. At this state Ludin is at bit risk, as the country, China is the largest consumer of copper, and at present the growth of China’s economy is creeping and so is the demand for copper, which is weighing on the price of copper.

Freeport has been moving and searching around to sell its controlling stake in the market for some time now, as it wants to reduce the present debt rate, which is about 20 million dollars and turn its focus to oil and gas, the company has already invested about 9 million dollars in two of the energy companies, two years ago.

Richard Adkerson, the Chief Executive of Freeport, has expressed his eagerness all the foreign investment of the company to avoid risk and also to concentrate mainly on the production in the US, which provides the firm more favorable permit laws as well as more active workers than in the foreign countries. Freeport has faced many disputes in its foreign investments, the firm had to suspend all of the mine’s export activities as a result of a tax dispute, along with that, the company also faced problems in its mine located in Congo, another foreign soft spot.