Monday, April 14, 2014
NEW YORK (AP) — Glencore Xstrata Plc has agreed to sell its copper mine project in Peru for $5.85 billion in cash.
In an announcement made Sunday, the Switzerland-based company said it signed an agreement to sell its entire interest in the Las Bambas copper mine to a Chinese consortium led by MMG Limited, a mining company whose biggest shareholder is backed by China's government. The other members of the group are Guoxin International Investment Corp. and Citic Metal Co.
The agreement also requires the buyers to reimburse Glencore for the cost of developing the copper mine from the start of the year until the sale closes. In the first three months of the year, those costs were roughly $400 million, according to Glencore's statement.
The company said it expects to close the sale before the end of September. It still needs MMG's shareholders and China's Ministry of Commerce to approve the deal.