Glencore completes $7bn sale of Las Bambas copper project
Mining group and commodity trader Glencore has completed the multibillion-dollar sale of its Las Bambas copper project in Peru and said proceeds will go towards strengthening its balance sheet.
The project, which was put up for sale last July, is still in pre-production phase and made a small loss for Glencore in 2013.
Even though production is scheduled to commence next year, Glencore sold its entire interest in the project to a consortium owned 62.5% by MMG, 225% by Guoxin International Investment Corporation and 15% by CITIC Metal.
The consortium paid around $7bn for the asset, which includes reimbursement of capital expenditure and other costs incurred in the year-to-date.
"The proceeds from the sale will immediately and materially de-gear Glencore's balance sheet. Glencore will continue to look for opportunities to reinvest capital in line with our published returns criteria," the company said.
It added that any surplus capital will be returned to shareholders as long as it can maintain an "efficient balance sheet".
BC