Metals Acquistion Corp has completed its first CSA Cobar copper mine shipment to Asia from Newcastle. 

In a statement, the company said, "Metals Acquisition Limited ("MAC") announces that the first shipment of copper concentrate from the CSA Copper Mine has been shipped from the port of Newcastle, New South Wales on June 27. The concentrate shipment contained approximately 2,300 tonnes of copper and 28,000 ounces of silver". 

It comes Glencore closed the sale of its CSA Cobar copper mine to Metals Acquisition Corp (MAC) in mid-June. 

MAC received $755 million in cash and $100 million in shares from Glencore for the mine. While Glencore will hold 28% of the shares in MAC.   

The purchase consideration also includes: 

• USD$75m deferred payment to be paid within 12 months; 
• USD$150m contingent payment upon future copper prices; 
• 1.5% life of mine Net Smelter Return royalty on copper. 

CSA Mine is one of Australia’s longest operating copper mines with a history stretching back almost 150 years. 

At 1.9 kilometres deep, it is the second deepest copper mine in Australia. 

CSA stands for 'Cornish, Scottish and Australia', after the nationalities of its first owners. 

Glencore took over the mine in 1997. 

The Mine in 1908. Image: Glencore. 

MAC Now Operating the Mine 

The Glencore/MAC deal has been on the table for some time now, with the companies entering into an agreement back in March 2022. 

MAC will assume management and ownership of the mine; Glencore will retain the offtake for 100% of the copper concentrate produced at the CSA copper mine. 

Mick McMullen, MAC CEO, commented, "CSA is an established, high-grade producing, long-life underground copper mine with an estimated current mine life of over 15 years. MAC has identified opportunities to further extend it, subject to exploration success. 

"We are delighted to have closed on the transaction. I want to thank the large group of investors that supported our recent PIPE totaling USD$230 million, our other funding partners, our advisors who have worked resolutely, as well as Glencore for working steadfastly with us throughout the entirety of our transaction.. 

McMullen said that copper had "favourable fundamentals" and expected its price to grow. 

MAC describes itself as a company "focused on operating and acquiring metals and mining businesses in high quality, stable jurisdictions that are critical in the electrification and decarbonization of the global economy." 

Image: Glencore 

The Cobar CSA copper mine is its first acquisition.  

In a statement Glencore said, "The sale of CSA Mine is consistent with delivering our strategy of simplifying and aligning our global portfolio to focus on lower-cost, long-life assets." 

"Glencore will continue to be among Australia's leading producers and exporters of the metals that underpin the global transition to a low-carbon future." 

Mick McMullen said, of its first shipment on June 27 that"MAC has taken its first important step today with the shipment of the first copper to customers in Asia".  

"When this company was formed, our mission was to acquire mines in Tier 1 jurisdictions, in commodities linked to global electrification, the CSA Copper Mine was exactly the type of asset we had in mind. The MAC team has been at CSA since the day of closing the transaction with the aim of having a running start to optimizing CSA to its full potential and beyond."