Bloomberg News

EMED Mining Ties in Goldman Funding as Copper Becomes ‘New Gold’

March 12, 2012

EMED Mining Public Ltd. (EMED) plans to use $175 million in loans arranged by Goldman Sachs Group Inc. (GS) to resume output at the Rio Tinto mine in Spain in 18 months.

The company, based in London, is seeking to obtain permits for the mine from Spanish authorities this year, Chief Executive Officer Harry Anagnostaras-Adams said in a phone interview.

“Copper is a new gold in a sense,” Anagnostaras-Adams said. “It’s starting to get looked at as a financial asset as well as an industrial asset. I think Goldman Sachs sees this as an opportunity to extend it commodities business.”

EMED will repay the loan in an equivalent value of copper over seven years, he said. “It’s a bit new for copper but it’s a sign that in time it will expand as a financing tool as copper gets more and more securitised,” Anagnostaras-Adams said.

The company is studying three more deposits at the site in Andalucia and expects to develop one or two, he said. EMED also owns a Slovakian gold project with 1 million ounces of reserves.

It plans to generate an annual $300 million to $400 million in cash flows in five years from two or three copper projects at Rio Tinto and a gold site in Slovakia, Anagnostaras-Adams said.

EMED plans to produce 37,000 metric tons of copper annually at the Rio Tinto mine over 14 years, he said, adding that the deal with Goldman is subject to exploration approval by the Andalucian government and due diligence by the bank.

To contact the reporter on this story: Firat Kayakiran in London at

To contact the editors responsible for this story: John Viljoen at;

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