A Chinese consortium led by MMG Limited has announced its plan to buy Glencore Xstrata’s copper mine in Peru for $6 billion.
The move marks one of the country’s biggest mining acquisitions.
“Since we acquired Xstrata… our team has taken decisive steps to de-risk Las Bambas, which has culminated in this compelling offer from the consortium,” said Glencore Chief Executive Ivan Glasenberg in a statement.
“Our willingness to sell reflects the level of the offer and our conviction that we can utilize the sale proceeds to create additional shareholder value,” he added.
Sale of copper project
The purchase is subject for approval, but all members of the board expect the all-cash deal to finish by September.
China’s economic activity relies heavily on the metal. Analysts expect Glencore to use the money to pay its debt.
The mine deal comes days after UK store House of Fraser sold most of its shares to the Chinese conglomerate Sanpower.
The deal was worth to be about $803 million.