Photo by: Reuters
JOHANNESBURG (miningweekly.com) – The $7-billion sale of the Las Bambas copper project, in Peru, to a consortium of investors has been completed, diversified miner Glencore announced on Friday.
The sale, which had immediately and materially degeared Glencore’s balance sheet, was effective Thursday.
The consortium, comprising MMG, with a 62.5% stake, Guoxin International Investment Corporation, with 22.5%, and Citic Metal Company, with 15%, had included the cost of Glencore’s capital expenditure in developing Las Bambas from January to the closing of the transaction.
Glencore said in a statement that it would continue seeking opportunities of reinvestment in line with the group’s returns criteria.
The company noted that any surplus capital would be returned to shareholders, as long as an efficient balance sheet was maintained.
The Las Bambas project was at an advanced stage of construction, with production expected to start in 2015.