Reporting by Angela Moon; Editing by Keiron Henderson
SEOUL — Two South Korean companies have increased their share in the Rapu Rapu mining project, which is expected to generate $350 million in yearly revenues from copper and zinc.
State-run Korea Resources Inc (KORES) and LG International Corp have increased their share in a Philippines copper and zinc mine, buying the stake from Australia 's Lafayette Mining, LG has said.
KORES and LG International, which had already owned 26 per cent stake in the Rapu Rapu project, are raising their share to a total of 70 per cent.
Earlier in the year, Lafayette Philippines , a Lafayette Mining unit, held talks to sell the mine to its partner KORES.
KORES was conducting due diligence on Lafayette's central Philippines mine, which was shut for over a year after cyanide spills in 2005, pushing its parent group close to bankruptcy and tripping up foreign investment in the sector.
Under the deal, the two companies will hold rights to develop, operate and sell output, LG International said in a statement, adding their investment will total $US43.4 million.
KORES and LG International acquired the initial 26 per cent stake in the mine in 2003 and have been selling the minerals to China and South Korea .
The Rapu Rapu mine has been forecast to generate revenues of $US350 million a year from annual production of 11,000 tonnes of copper and 13,000 tonnes of zinc.