RTG Sells Zambian Copper Project To Elephant Copper
News: Australian exploration and development company RTG Mining has signed a deal to sell its Mkushi copper project in Zambia to British Virgin Island-based mining company Elephant Copper , Yahoo! Finance reports. The deal will see RTG sell its 51% stake in the project to its joint venture partner Elephant Copper in return for AUD 7.4mn (US$6.6mn) in shares and a AUD 7.3mn (US$6.5mn) unsecured redeemable convertible note. The deal is expected to be completed in September 2013.
BMI View: Zambia's mining sector is set to continue the recovery seen over the last decade. The country had declining copper output throughout the 1990s, but a mixture of low taxes, privatisation and elevated copper prices has seen a substantial boost to investment and output. We expect the value of the mining sector to reach US$899bn by 2017, from US$782mn in 2012, marking an annual average growth rate of 2.8%.