Diversified miner Anglo American will sell its Anglo American Norte copper asset to an investor consortium led by Audley Capital Advisors for up to $500-million.

Norte owns the Mantoverde and Mantos Blancos copper mines, in northern Chile.

The total consideration payable to Anglo American comprises $300-million in cash and a number of additional future payments of up to $200-million, contingent on factors such as the average LME copper price performance and any future decision to pursue the sulphide life extension of the Mantoverde mine.

“The sale of our Norte copper assets to the Audley consortium represents a good outcome for Anglo American, both in terms of the upfront value achieved, the potential upside geared to the copper price and the continued delivery of our asset disposal programme.

“[Audley mining CEO] John MacKenzie’s long-standing knowledge of these two mines and his appreciation for the operating environment in Chile stand him and the team on the ground in good stead for the future,” says Anglo American CEO Mark Cutifani.

He adds that, in line with Anglo’s strategic objectives, the group is focusing its diversified portfolio on its largest and most value-accretive assets, including the Los Bronces and Collahuasi copper mines, in Chile, and the Quellaveco copper project, in Peru.

MacKenzie says Audley is delighted that it can, together with lead investor Orion Mine Finance, acquire the Mantoverde and Mantos Blancos mines.

“I know both of these operations well and can see the scope to further enhance the business under our ownership, particularly in terms of their life extension potential to meet our expected view of constrained copper supply in the medium and longer term. “I have a high regard for the team of people who work at these operations and believe that Chile remains one of the most attractive destinations for mining investment.”

The transaction is not subject to any regulatory conditions and is expected to close in the third quarter.