The Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), a state-owned energy and natural resources company, is preparing to sell its Boleo copper mine in Mexico, which began commercial production in 2015. KOMIR initially invested $1.479 billion in the large-scale project in 2008 by forming a consortium with leading South Korean conglomerates to finance the mine’s development.
KOMIR has tapped EIP Asset Management and CIBC Capital Markets, the investment banking subsidiary of the Canadian Imperial Bank of Commerce, as joint advisors for the sale, according to sources familiar with the matter on Jan. 16. The company has sent a teaser letter to potential buyers, and is separately engaging in discussions with foreign developers regarding the potential sale.
The deal involves KOMIR’s 88.06% stake in Minera y Metalúrgica del Boleo (MMB), the operating company that wholly owns the Boleo mine. Under shareholder agreements, the remaining stakeholders, including the Korean Boleo Corporation (KBC) and Canada’s Camrova Resources Inc., have tag-along rights, allowing them to join the sale.
KBC, a company established by LS MnM, Hyundai Steel, SK Networks, Lotte Energy Materials, and KOMIR to participate in the Boléo project, is reported to have repaid nearly 900 billion won in joint-stock guarantee debt last year to prepare for the sale.
Located in Mexico’s mining district, the Boleo copper mine produces key minerals, including copper, cobalt, and zinc. Estimated to hold reserves of 150 million tons, the mine boasts a self-sustaining infrastructure equipped with a dedicated port, a power plant, and nearby highway access. Ongoing exploration activities suggest the mine’s operational lifespan is projected at more than 15 years.
KOMIR’s decision to divest aligns with a broader strategy to offload overseas mining assets. However, the growing importance of securing critical mineral supply chains has led the state-run energy company to limit its sales. KOMIR narrowed the scope to include replaceable assets such as the Boleo copper mine, which could be substituted by a copper mine in Panama. The Narrabri and Togaranos coal mines in Australia are also up for sale, with 25% of the Australian joint venture stakes owned by Hyosung, Dongbu Construction, and KOMIR included in the sale.
The sellers plan to grant potential buyers who submit a letter of intent (LOI) access to a virtual data room (VDR) for due diligence. Binding bids are due by Feb. 6, after which a shortlist of qualified bidders will be finalized.
