JOGMEC sells offtake option for Vicuna's copper project in Argentina

TOKYO, March 11 (Reuters) - Japan Organization of Metals and Energy Security (JOGMEC) said on Wednesday it had sold its option to take delivery of 40% of future copper concentrate output from Vicuna's Josemaria project in Argentina to Mitsui & Co 8031.T for an undisclosed sum.

• Mitsui secured the right to future offtake from the Josemaria copper mine development project, owned by Vicuna, a joint venture between Canada's Lundin Mining LUN.TO and Australia's BHP BHP.AX.

• Integrated development with the adjacent Filo del Sol area, also held by the JV, is under consideration and viewed as a potential long-term source of copper supply.

• Japan's state-owned JOGMEC conducted joint exploration activities in the Josemaria region between 2009 and 2017, but withdrew and sold its 40% stake to its partner while retaining a 40% offtake option.

• JOGMEC solicited companies capable of supplying concentrate from this region to Japan and the option was sold to Mitsui through a public tender, strengthening Japan's long-term supply of copper concentrate.

• Vicuna said in February it aims to begin production in 2030, with the first six-year expected to yield an average 715,000 metric tons a year of concentrate from the Josemaria area.

• The 40% offtake amounts to 286,000 tons of concentrate, equivalent to about 5.5% of Japan's annual concentrate imports, JOGMEC said.

• Development of the Josemaria and Filo del Sol projects will be carried out in three stages. The first stage will be focused on the Josemaria deposit, with the latter two focused on Filo del Sol.