China’s Jiangxi eyes Glencore copper mine
Hong Kong, August 25, 2013
Jiangxi Copper has joined a list of potential Chinese suitors interested in buying Glencore Xstrata $5 billion-plus Las Bambas copper mine in Peru, a report said.
Glencore's sale of the mine comes at an opportune time for China, which is the world's top importer of copper concentrate but produces only about a third of the amount it needs, according to a report in the Gulf Daily News, our sister publication.
Jiangxi, China's biggest copper producer, may eventually team up with either Chinalco Mining Corporation International or MMG, which are also evaluating bids for the mine. All three might team up together.
If Jiangxi did agree to join a consortium bid, it would likely play a junior role. A consortium would also be seeking financial investors to back any offer.
The auction has generated limited interest from other copper miners around the world so far. All the sources declined to be identified due to the confidential nature of the discussions.
Toronto-based Magris Resources, a private equity firm led by former Barrick Gold Corporation chief executive Aaron Regent, is also in the running for the asset.
Glencore's Peru mine is scheduled to produce 400,000 tonnes of copper a year starting in 2015 for at least five years. Jiangxi Copper already has operations in Peru. It owns 40 per cent of the Northern Peru copper mining project, which is expected to start production between 2014 and 2016. State-owned China Minmetals Non-Ferrous Metals owns 60 per cent of the mine. – TradeArabia News Service