Anglo American PLC said June 14 that it signed a heads of agreement with Mitsubishi Corp., where the latter will increase its stake in the Quellaveco copper joint venture in Peru to 40%.

Mitsubishi, which held an 18.1% stake in Quellaveco prior to the deal, will acquire a 21.9% interest in unit Anglo American Quellaveco SA, which holds the project, for up to US$600 million. Under the deal, Mitsubishi will pay US$500 million upon the close of the transaction, expected in the third quarter.

Anglo American will stand to receive an additional US$50 million upon total ore treatment rates at Quellaveco reaching at least 150,000 tonnes per day, with another US$50 million upon total ore treatment rates reaching at least 180,000 tonnes per day.

In May, Anglo American tapped Goldman Sachs and Morgan Stanley to help in the sale of up to a 30% stake in Quellaveco. The mining major previously said it was willing to reduce its stake in Quellaveco to between 50% and 70%.