Mubadala Development Company, Mubadala, the Abu Dhabi-based investment and development company, and Trafigura Beheer), a market leader in the global commodities industry, yesterday announced the signing of an agreement to create a 50/50 joint-venture company to invest in the base metals mining sector, including copper and zinc.

As part of the agreement, Mubadala is acquiring a 50 percent share in Trafigura's flagship mining operation, Minas de Aguas Tenidas, MATSA, which owns the Agua Tenidas, Sotiel and Magdalena mines in southern Spain, which produce copper, zinc and lead concentrates.

"MATSA has a strong competitive position and excellent expansion potential, with capacity expected to more than double over the next two years," said Ahmed Yahia Al Idrissi, Chief Executive Officer, Mubadala Technology and Industry. "Investing in MATSA is a key step in growing and diversifying our existing metals and mining portfolio."

"This builds on our existing sector strategy and partnership with Mubadala. We are identifying new opportunities and investing thoughtfully together, in ways that complement our existing portfolio," said Jeremy Weir, CEO, Trafigura.

A two-year investment and expansion plan by Trafigura for MATSA is nearing completion and included a new treatment plant which has close to doubled annual processing capacity to 4.4 million tonnes per annum.

Under the joint venture, day-to-day operations at MATSA will continue as usual, including existing terms and conditions for employees, contractors and suppliers. This agreement is subject to relevant regulatory approvals.