Glencore increases stake in Argentina's Mara copper project

Glencore reached an agreement with Newmont to acquire the latter’s 18.75% share in the US$2.78bn Mara copper, molybdenum, gold and silver project in Argentina’s Catamarca province.

Following the US$125mn deal, which involves another US$30mn payment upon the start of commercial production, Glencore will have 43.75% of the project. 

Mara is controlled by Yamana Gold, which will continue to hold 56.25% of the project. 

Glencore previously operated Minera Alumbrera, in which Yamana was a partner. Currently, Alumbrera is part of the MARA project after its integration with Minera Agua Rica, which Yamana wholly owned. Glencore has worked with Yamana in the formation of the MARA JV, the integration of the processing plant, related infrastructure and other assets of Minera Alumbrera with the Agua Rica deposit, and the advancement of the project since then, according to company statements.

Mara has proven and probable mineral reserves of 5.4Mt of copper and 7.4Moz of gold contained in 1.105Bt of ore. 

Estimated copper equivalent production is 556Mlb (253,000t) during the first 10 years and 469Mlb over a mine life of 28 years.

However, Mara is in the evaluation stage and further technical studies are being carried out to update reserves, production and capital cost estimates. The results of the studies are expected by the end of this year and the report in the first half of 2023, according to Yamana Gold's Q2 financial results.

Mara is expected to rank among the top 25 copper producers in the world, Yamana's report said.