Australian magnate Rinehart to buy stake in Titan Minerals' Ecuadorian copper project (updated)

Arafura Rare Earths

18/09/2024 01:40

(Adds details and background from paragraph 2 onwards)
       Sept 18 (Reuters) - Australia's Titan Minerals  TTM.AX 
on Wednesday announced plans to sell up to 80% stake in its
Linderos copper project in Ecuador to a unit of billionaire Gina
Rinehart's Hancock Prospecting for up to $120 million.
    Under the deal, Hanrine Ecuadorian Exploration and Mining
will initially earn a 5% interest in the project after a $2
million payout, Titan Minerals said.
    Rinehart's Hanrine Ecuadorian can eventually ramp up its
stake to 80% by either spending $120 million or taking a
decision to mine at the project within 15 years.
        The demand for critical mineral copper is likely to
surge over the next few decades as the world transitions away
from fossil fuels for its energy needs, supporting the usage of
electric vehicles, wind turbines and batteries - all of which
require the red metal. 
        Iron ore miner Hancock has been building stakes in
critical minerals projects, including rare-earths. Its
investments include a 5.56% stake in Brazilian Rare Earths
 BRE.AX  and an 8.57% holding in Arafura Rare Earths  ARU.AX ,
according to LSEG data.
    

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by
Subhranshu Sahu and Sherry Jacob-Phillips)
 ((Aaditya.GovindRao@thomsonreuters.com;))