Chinova Resources has put its suite of Cloncurry copper assets on the sale block
Chinova Resources is looking for bids for its Cloncurry copper assets with offers in the $400m range expected.
Chinova Resources is looking for bids for its Cloncurry copper assets with offers in the $400m range expected.
Shanxi Donghui Energy Group is selling its wholly-owned Australian subsidiary Chinova Resources, which bought the copper projects and a processing plant from Ivanhoe Australia in late 2013.
BurnVoir Corporate Finance is running the sale process, and it is understood the price tag is likely to be around the $400m mark.
The assets include the Osborne processing plant, which has been on care and maintenance since 2021, as well as a power plant, air strip, accommodation facilities, and several projects with a combined mineral resource estimate of 3.9 million tonnes of contained copper, 6.8 million ounces of gold as well as molybdenum and cobalt.
“In December 2013 Shanxi Donghui acquired the Ivanhoe Australia group of companies which owned the mining operations at Osborne and Starra 276, including infrastructure at Mount Dore Camp and Merlin plus the associated Osborne and Selwyn resource authority holdings,’’ Chinova’s website says.
“Chinova operates from the Osborne Mine site, 190km south east of Mt Isa and 150km south of Cloncurry in Western Queensland.
“A small exploration base is maintained at the Merlin Mine facilities 55km north of Osborne. Collectively these are referred to as the Chinova Cloncurry Project.’’
Marketing materials for the projects indicate the Starra Line asset has a current six year mine life estimate including open pit and underground mining, with expansion opportunities, while the Mt Dore heap leach project is “development ready” with an 11 year mine life.
“The possible transaction represents a rare opportunity to secure a premium cooper, gold, molybdenum, cobalt package with existing operations, established infrastructure and workforce, brownfield expansions, development ready projects and over 2800sq km of highly
prospective greenfield exploration ground,’’ BurnVoir says.
“Chinova offers potential as a transformational acquisition, a strategic provincial exposure to
future facing metals and/or a suite of individual projects with inherent value ready to be unlocked.’’
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