Commodities Buzz: MMG Agrees to Sale 90 Percent Interest in Lane Xang Minerals

MMG Limited (MMG) last week agreed the sale of its 90% interest in Lane Xang Minerals (LXML), which owns the Sepon mine in Lao PDR, to Chifeng Jilong Gold Mining Co Ltd (Chifeng), for US$ 275 million.Sepons current copper operation has a projected mine life to around 2020; however, the mine life has the potential to be extended as a primary gold operation.

Accordingly, MMG initiated a strategic process in relation to its interest in Sepon in October 2017, with a view to transferring the mine to a gold focussed company better suited to realising Sepons future as a primary gold operation.

LXML Sepon produced has produced over 900,000 tonnes of copper and over 1.2 million ounces of gold. The operation has contributed over US$ 1.4 billion in direct revenue to the Lao Government. LXML will continue to maintain its closure and rehabilitation fund and community projects close to the mine.