Ex Xstrata chief Mick Davis keen to bid for Anglo American’s Chilean copper mines
10 Nov 2014
Mick Davis, the former head of mining giant Xstrata, is among those interested in bidding for Anglo American's copper mines in Chile.
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, according to weekend report from The Wall Street Journal, which cited a person familiar with the matter as saying.
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. and Toronto-based Magris Resources Inc, the report said.
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.