11th Oct 2013 09:13
LONDON (Alliance News) - Two groups of Chinese mining companies are competing for control over Glencore Xstrata PLC's USD5.9 billion Las Bambas copper mine in Peru, Reuters reports.
The metals and minerals giant agreed this year to sell the Las Bambas project to meet demands from China's competition authorities after its record-breaking takeover of mining group Xstrata.
According to Reuters, several sources said that initial bids for Las Bambas - due to begin production in 2015 - had come in around the USD6 billion mark, including the sum invested in construction so far.
The shortlist of suitors was said to include Chinese giants Chinalco, which has partnered with Jinchuan, and rival Minmetals, which had partnered with CITIC. Chinalco already has a presence in Peru with the Toromocho mine.
Las Bambas is expected to produce more than 450,000 tonnes of copper a year in its first five years of operation and an annual 300,000 tonnes thereafter.
In a research note published in May, Nomura analysts put the end-2014 value of the mine at about $6.2 billion.
Glencore said publicly last month that it had seen robust Chinese interest and expects a sale agreement before the year end.
Glencore shares were up 1.7% to 332.35 pence, putting it in the top five FTSE100 movers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2013 Alliance News Limited. All Rights Reserved.
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