Glencore Xstrata is selling its Las Bambas copper mine project to a Chinese consortium for at least $5.85bn, underscoring China’s continued demand for commodities to feed industrial growth and bolstering the balance sheet of the resources group led by Ivan Glasenberg.
The sale to a consortium led by MMG, a subsidiary of state-owned Minmetals, is one of the largest acquisitions of mining assets by China. Las Bambas is one of the world’s largest mines under construction, expected to supply about 450,000 tonnes of copper annually.
The price is at the upper end of the $5bn to $6bn range that most industry analysts had expected. “Our willingness to sell reflects the level of the offer and our conviction that we can utilise the sale proceeds to create additional shareholder value,” Mr Glasenberg said.