Key facts
- Sumitomo Corp. has partnered with G Mining Group to invest in the Dos Amigos copper-gold project in Chile.
- The investment is made through a special purpose vehicle that will hold a 25% equity stake in Tintina Mines Limited.
- The project is located in the Atacama Region and has estimated mineral resources of over 100 million metric tons.
- Annual production is projected to be around 37,000 metric tons of copper and 57,000 ounces of gold.
- Production is anticipated to commence in the early 2030s.
Sumitomo Corp. has joined the Dos Amigos copper-gold project in Chile's Atacama Region, a move that signals the Japanese trading house's strategic focus on copper resources. The investment is being made through a special purpose vehicle (SPV) established on a 50:50 basis with the G Mining Group. This SPV subscribed for approximately C$48 million in a private placement by Tintina Mines Limited, a Canadian mine development company. Following this financing, the SPV will hold approximately a 25% equity stake in Tintina, translating to an effective economic interest of about 12.5% for Sumitomo in the Dos Amigos project.
The funds raised will be used to acquire additional ownership interests in the project, ultimately leading to Tintina obtaining 100% ownership, and to advance the project towards a final investment decision. This includes funding drilling, feasibility studies, environmental assessments, and permitting work.
The Dos Amigos project is centered on a copper-gold deposit with preliminary economic assessments identifying substantial mineral resources. Measured and indicated resources stand at approximately 101 million metric tons, with inferred resources at approximately 256 million metric tons. The project is expected to have a mine life of about 25 years, utilizing open-pit mining and flotation processing with an anticipated ore throughput of 35,000 metric tons per day. Annual production is projected to average 37,000 metric tons of copper and 57,000 ounces of gold.
Sumitomo Corporation views copper as a key strategic focus due to its expected continued demand growth, particularly with the rise of data centers and AI infrastructure. The company is actively strengthening its mineral resources business by originating and enhancing promising projects. The Dos Amigos project was identified and structured through G Mining Capital Inc., an upstream copper business development platform jointly operated by Sumitomo Corporation and the Gignac family, leveraging Sumitomo's business management expertise and the G Mining Group's development and construction capabilities.
The project benefits from its location in the Atacama Region, with existing transportation and power infrastructure, and a relatively low elevation. Promising exploration potential in adjacent areas suggests further growth opportunities. Production is expected to commence in the early 2030s, contributing to the stable supply of copper resources.