Chinese consortium buys Glencore copper mine

The share price of Glencore Xstrata is up this morning (April 14th) after the company completed the sale of a copper mine to a Chinese consortium.

MMG Limited and Citic Metal are among those involved in the purchase of the copper mine in Peru, with the all-cash deal worth $6 billion (£3.6 billion).

Ivan Glasenberg, Glencore's chief executive, explained that following the merger with Xstrata, action has been taken to “de-risk” the Las Bambas mine.

He described the bid from the Chinese consortium as a “compelling” offer and added: "Our willingness to sell reflects the level of the offer and our conviction that we can utilise the sale proceeds to create additional shareholder value."

Las Bambas is now likely to produce over 450,000 tonnes of copper a year in its first five years, it was revealed in a statement.

Following the announcement, the share price of Glencore Xstrata rose strongly in the early stages of trading on the London Stock Exchange. By 08:33 BST, shares in the firm were up 1.77 per cent on the start of the session. But at 11:26 BST, stocks were just 0.98 per cent higher for the day.

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