Las Bambas (Company)

Las Bambas (Company)

It looks like the rumours have proved to be correct as China’s Minmetals announces a first round bid for Glencore-Xstrata’s (GLEN:LN) Peruvian Las Bamabas copper mine.  Prior to the mega-merger being finalized between Glencore and Xstrata last year, the Chinese antitrust authorities demanded the sale of Glencore's $5.2 billion Las Bambas mine in order to reduce the power the newly formed mining giant would hold over the copper markets.

Gu Liangmin, Managing Director of Minmetals said: "we will be very cautious about our decision. It's unnecessary for Minmetals to buy assets at a crazy price or a price that we believe is not worth it."

Chinalco and Jaingxi, both Chinese groups, are also said to be interested in the strategic copper mine.

Peru’s Mines Minister Jorge Merino said: "I cannot give names of companies, but what I can say is that there are companies from many countries - from Australia, from China, Canadian companies, there are also American companies interested in the project."

Newmont is also said to be interested in the project, although that would appear to be a fainting hope.