Mick Davis, Glencore among bidders for Anglo’s Chile copper mines – by Silvia Antonioli and Freya Berry (Reuters U.S. – June 17, 2015)


LONDON, June 17 (Reuters) – Mining and trading company Glencore and X2, a vehicle set up by former Xstrata CEO Mick Davis, are among the companies that placed bids last week for two Anglo American copper mines in Chile, sources said this week.

British investment firm Audley Capital was also among the first round of bidders, the sources added.

The Mantos Blancos and Mantoverde copper mines in Chile together could fetch up to $1 billion, according to banking sources, but two mining sources familiar with the mines gave more conservative valuations of around $500 million or less.

“The deadline to submit the bids was a week ago and X2 is still in the running,” a first banking source said. “Mick (Davis) seems keen on those assets.” An industry source said although Glencore was still in the process it was unlikely to make a high enough bid to win the assets.

“They are both mines towards the end of their life although with some investment Mantoverde’s life can be extended,” a second industry source said. “I would think a smaller firm like Audley is more likely to get them. Certainly the John MacKenzie connection is strong.”

Audley Capital’s mining CEO John MacKenzie was Anglo American’s head of copper until 2013.

Anglo American, the smallest of the global diversified miners, is under pressure to dispose of some non-core assets to shore up its balance sheet and maintain its credit rating as it battles weak commodity prices.

A number of other companies, including private equity firms Warburg Pincus and Magris Resources and mining company Nevsun Resources and Chilean state-owned Codelco, had also shown interest in the mines, some of the very few copper assets up for grabs, the sources said.

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