[miningmx.com] – GLENCORE Xstrata said it had signed an agreement to sell its Las Bambas copper mine project for $5.85bn to a consortium in which China Minmetals Non-Ferrous Metals is a major shareholder.
A further $400m representing capital expenditure and other costs is also payable by the consortium which consists of MMG Limited (62.5%), GUOXIN International Investment Corporation Limited (22.5%) and CITIC Metal Company Limited (15%). China Minmetals Non-Ferrous Metals owns 74% of MMG.
Glencore Xstrata said the capital from the disposal would either be reinvested with surplus capital returned to shareholders. “Today’s announcement demonstrates our commitment to maximising value for our shareholders,” said Ivan Glasenberg, CEO of Glencore Xstrata.
“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,’ he said.
Las Bambas, located in Peru, is scheduled to commence production in 2015. It was developed by Xstrata prior to its merger with Xstrata. The transaction is expected to close prior to the end of the third quarter of 2014, Glencore Xstrata said.
