Hindalco Industries Ltd replied stating “Please note that Aditya Birla Minerals Ltd (ABML) is our subsidiary listed on Australian Stock Exchange”. Apart from this the buyer will also reimburse Aditya Birla Minerals for actual care and maintenance expenses incurred by it for the operations, between the time of agreement and completion of transaction, the company said. The operation has been put under Care and Maintenance since April 2013.

Aditya Birla Minerals is part of the Indian conglomerate Aditya Birla Group and is 51 per cent owned by Hindalco Industries.

BMG is located in northwest Queensland and is set up to produce copper in concentrate at around 1.4 million tonnes per annum. “Replacing all financial assurance bonds (being environmental bonds and performance bonds) in relation to Mt Gordon, amounting to approximately 41.7 million Australian dollar”, it added.

“The transaction has resulted from the overall strategic review previously announced, which seeks to maximize value for ABML shareholders and which involves consideration of corporate and operational strategies, including ownership and disposal options available to the company”, the company said in its statement.

As per the terms and conditions of the deal, Lighthouse Mineral Holdings will pay 5 million Australian dollars in cash to ABML on completion of the transaction.

Aditya Birla Minerals managing director Neel Patnaik said that the transaction reflects the efforts undertaken by the company, BMG and its employees. ABML will continue to operate the Birla Nifty copper mine and technically review the Birla Maroochydore copper project throughout the strategic review process, the press statement said. The company focuses on copper production and exploration.