Chinalco abandons independent Glencore Bambas bid, may team up with Minmetals

Las Bambas in Peru

Chinese state-owned aluminum producer Chinalco will not independently pursue purchase of Glencore’s Las Bambas copper project in Peru, the Washington Post reports.

Instead, Chinalco is considering an offer to team up as a minority partner with China Minmetals Corp., the giant government-run metals trader, who has offered Glencore roughly $5 billion for the copper mine.

Las Bambas requires an estimated $5.9bn investment to be fully developed, but it is already 43% completed and production at the mine is due to start in 2015.

The project is expected to produce more than 400,000 tonnes of copper per year once in production, as well as significant amounts of silver and gold.

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