Glencore‘s (LSE: GLEN) long-running marketing campaign to promote its CSA copper mine in Australia’s New South Wales state appears to be lastly coming to an finish because the miner confirmed right now it has obtained curiosity from bidders for a possible deal.
The Swiss corporations is predicted to faucet Financial institution of America and UBS to help with the sale of the underground mine close to Cobar, which Glencore first tried offloading in 2015 as a part of a wider plan to cut down debt. Failing to agree on a take care of potential consumers, it then determined to retain the asset as copper costs climbed again up from multi-year lows.
The miner and commodities large received near promoting CSA to small Australian copper producer Aeris Resources (ASX: AIS) in 2019 , however negotiations fell by way of.
Aurelia Metals (ASX:AMI) an exploration and growth firm, additionally engaged in negotiations round a possible acquisition of the mine.
A spokesperson for the corporate stated present talks have been at an early stage, including there was no assure at this level {that a} transaction would materialize.
The Cobar mine produces over 1.1 million tonnes of copper ore and 185,000 tonnes of copper focus. The focus comprises roughly 29% copper and is exported to smelters in India, China and Southeast Asia. With 4.3% copper grade in reserves, this mine holds fourth place in MINING.COM’s checklist of highest-grade underground copper operations.
Glencore valued the asset at US$329 million on the finish of 2013, however it’s now anticipated to fetch over US$725 million, The Australian reports. Final 12 months, it produced 46,200 tonnes of copper, contributing A$309-million (about US$224 million) to Glencore’s books.
