Xstrata looks to sell its Chilean mine
MINER Xstrata, the group tied up in a merger battle with rival Anglo American, is in talks to sell off its key stake in a South American mine for an estimated $700m (£420m).
“Xstrata Copper has received expressions of interest that may result in the introduction of an additional partner into the El Morro copper-gold project in Chile, or the eventual sale of Xstrata’s 70 per cent interest,” a company spokesperson said. “We are evaluating the approaches we have received and no decisions have been made on whether or not to divest El Morro or dilute our stake,” he added.
The spokesman also said there was no time frame for the transaction.
Xstrata, which proposed a merger of equals deal with Anglo in June, inherited El Morro when it took over peer Falconbridge in 2006.
It is understood that the buyer would have to put around $1bn into the project to fully develop the mine. It would also have to work alongside New Gold, which owns 30 per cent.