Glencore, Mick Davis among bidders for two Anglo American Chilean copper mines

Glencore International and X2, an investment vehicle set up by former head of mining giant Xstrata Mick Davis, are among the bidders for two Anglo American copper mines in Chile, Reuters yesterday reported, citing unnamed sources.

Other companies in the first round of bidding are also British investment firm Audley Capital, the report said.

London-based Anglo American had in June announced that it was planning to sell off a few assets at several sites, but did not reveal which would be put up for sale.

Anglo American, run by CEO Mark Cutifani, plans to sell some under-performing assets, including three Chilean copper mines and a smelter.

Anglo American plans to raise at least $1 billion from the sale of the Mantos Blancos, Mantoverde mines, along with its stake in the El Soldado mine and the Chagres smelter in Chile and focus on its larger copper operations at Los Bronces mine and Collahuasi.

Davis, who transformed Xstrata into a mining giant through aggressive acquisitions, launched mining company X2 Resources earlier this year after he left Xstrata following its acquisition by Glencore last year (See: Former Xstrata head Mick Davis back with new mining venture).

X2 is reported to have raised around $5 billion from several investors, mainly for acquisitions.

Among the other firms who have shown early interest are London-based investment QKR Corp, Toronto-based Magris Resources Inc, private equity firms Warburg Pincus and Magris Resources and mining company Nevsun Resources and Chilean state-owned Codelco.

In Chile, Anglo American has interests in six copper operations. The Mantos Blancos and Mantoverde mines are wholly-owned and hold a 50.1-per cent stake in Anglo American Sur, which includes the Los Bronces and El Soldado mines and the Chagres smelter. It also holds a 44-per cent stake in the Collahuasi mine.