Chinese bidders eye Glencore Xstrata's Peru copper mines

4th Jun 2013 10:06

Glencore Xstrata's copper mines in Peru are being eyed off by two companies linked to Chinese state-backed groups, Reuters reported Tuesday.Chinalco Mining Corp. International and Hong Kong-listed MMG Ltd are said to be weighing up bids for the Peruvian assets, which are roughly worth $5.0bn. The disposal of the Las Bambas project in Peru's Cotabambas and Grau Provinces is part of Glencore's deal with China's anti-monopoly ministry relating to its $35bn takeover of Xstrata earlier this year.The sale is also anticipated to attract investors from India but the market sees Chinese entities as the preferred bidders."The impression in the market is that China would love for this to end up in Chinese hands," a person familiar with the process told the news agency. "That would likely be an overhang on any process. No one wants to go in and spend the time and money to be a stalking horse for a Chinese bidder."Meanwhile, Glencore Xstrata was due to meet with the Association of Mineworkers and Construction Union (AMCU) on Tuesday in South Africa ahead of an afternoon deadline for workers to appeal their dismissal.The company dismissed about 1,000 workers on Friday following a strike at three of its chrome mines.The employees have until 13:00 to appeal the decision.Labour disruptions started earlier this month when workers shut down South African platinum producer Lonmin following a dispute between AMCU and the National Union of Mineworkers.Glencore Xtrata's shares climbed 0.47% to 328.10p at 10:55 Tuesday.RD