- As expected, Glencore Xstrata (OTCPK:GLNCY) has agreed to sell its Las Bambas copper project in Peru to a consortium led by China Minmetals for $5.85B.
- Glencore Xstrata is divesting the mine in order to meet Chinese conditions for the approval of Glencore's purchase of Xstrata.
- The Las Bambas transaction is yet another example of a Chinese company buying a resources asset to help feed high domestic demand. China accounts for around 40% of global copper demand, while Las Bambas is expected to produce 400,000 metric tons of copper a year when it starts output in 2015, or equivalent to 12.5% of China's copper imports.
- The buying group also includes Guoxin International Investment Corp and Citic Metal. (PR)