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Antofagasta shares up as miner offloads water unit for nearly US$1bn

Published: 00:16 24 Apr 2015 AEST

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Chilean miner Antofagasta (LON:ANTO) has agreed to sell its water utility business for US$960mln to Columbia’s state-owned Empresas Públicas de Medellín (EPM).

ANTO’s unit, named ADASA, provides drinking water and water treatment services to domestic and commercial customers in northern Chile.

The division contributed US$64mln to the group's 2014 profits before tax and had gross assets of US£212mln as of 31 December 2014.

EPM is a gas, electricity, water and sanitation provider owned by the city of Medellín that delivers these services to over 20 million people in Colombia, El Salvador, Guatemala, Mexico and Chile.

Diego Hernandez, Antofagasta’ chief executive, said: "We are very pleased to announce the sale of ADASA to EPM following a formal competitive sale process. 

“This sale will allow Antofagasta to focus even more closely on its mining business and to advance its various development projects, whilst reinforcing the strength of our balance sheet."

Like its mining peers, FTSE 100-listed ANTO is under pressure from weaker commodity prices.  

Copper prices have been particularly low and forced Antofagasta to announce the closure of its 30-year-old Michilla mine at the end of last year.

Shares in ANTO climbed 3% on the news to 773p.


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