TOKYO - Japan's JX Advanced Metals on Tuesday said its Pan Pacific Copper (PPC) unit sold its entire stake in the undeveloped Quechua copper project in Peru to Swiss trader and miner Glencore for an undisclosed sum.

The sale is part of JX's effort to reorient its portfolio toward its advanced materials business and away from its more volatile mining operations, while giving Glencore a key new project in the Andean nation.

"The project has the potential to support our Antapaccay mine given its close proximity to the operation and its Coroccohuayco project," Glencore said in a separate statement.

The Quechua copper project is expected to have an estimated investment of $1.29-billion, according to Peru's mining project portfolio.

Since acquiring mining interests in the Quechua project in 2007, PPC conducted multiple feasibility studies to assess its economic viability, but did not move into the development phase as it prioritised the Caserones copper mine in Chile.

PPC bought the Quechua stake, which has estimated mineral reserves of 260 million metric tons, for $40-million. At the time, it planned to start production in 2012 and target output of 210 000 tons of copper concentrate, equivalent to about 60 000 tons of copper.

STRATEGIC PIVOT FROM MINING

JX is a leading manufacturer of sputtering targets, which are materials used to create thin metal films used in chip production.

Since 2019, the company has shifted its focus away from mining and smelting toward materials used in smartphones, cars, and telecommunications infrastructure, after incurring hefty losses at the Caserones mine.

PPC, Japan's largest supplier of refined copper, is 47.8% owned by JX; Mitsui Mining and Smelting owns 32.2% of the company and Marubeni owns 20%.

JX owns a 30% stake in the Caserones mine, 12.52% of the Los Pelambres copper mine and 3% of the Escondida copper mine, all in Chile.

JX has been selling interests in large copper mines while investing in smaller-scale projects to secure stable supplies of minor metals, rare earths and other resources used in its advanced materials business.

Asked whether it would sell the remaining stakes in the Chilean mines, a company spokesperson said no decisions had been made, but all options were under consideration.