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EMR acquires 80 percent stake in Lubambe Mine

Private equity house, EMR Capital, has bought 80 percent stake in Lubambe Copper Mine in Chililabombwe at a cost of US$97.1 million.

EMR is a specialist resources private equity management firm with a proven investment track record spanning over 20 years managing investments of over US$2 billion.

Lubambe Mine is jointly-owned by African Rainbow Minerals (ARM) and Vale International SA, which have 80 percent interest in the mine.

ARM and Vale International SA, a wholly-owned subsidiary of Vale South Africa, have concluded an agreement for the disposal of the two company’s 80 percent indirect interest in Lubambe Mine, according to a statement issued yesterday.

“The 80 percent indirect interest in Lubambe Mine, which is held in equal shares by ARM and Vale, includes the equity holding in the mine as well as loans to Lubambe Mine,” ARM says.

The transaction linked to Lubambe Copper Mine will be completed upon satisfaction of certain conditions precedent.

Commenting on the development, EMR chief executive officer Jason Chang said the Lubambe acquisition reflected the company’s confidence in the quality of the project as a long life copper producer.

The mine is located in Zambia’s most prolific mining region, with over 100 years operating history.

“We are pleased to enter into an agreement to acquire Lubambe, which offers exceptional quality and growth potential and which will substantially enhance the value and depth of our copper portfolio,” he said.

The agreement to acquire the Lubambe Mine follows the closing of EMR’s second private equity fund, EMR Capital Resources Fund II, at US$860 million (1.12 billion Austrian dollar) and the purchase of Golden Grove, a copper zinc mine in western Australia.

The statement also notes that EMR will continue to focus on copper, gold, potash and coking coal acquisition opportunities globally.

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