Chinese-owned MMG agrees to buy US$5.85b copper mine

A group led by China Minmetals Corp's overseas arm has agreed to pay US$5.85 billion for Glencore Xstrata's Peruvian copper mine.

The deal is one of China's largest-ever overseas mining acquisitions.

It would give China control of a top quality mine that is expected to produce more than 400,000 tons of copper annually over the next decade while help the Swiss company reduce debt.

Glencore last year agreed to sell the Las Bambas project in return for approval from China's competition authorities for its takeover of Xstrata.

Melbourne-based MMG Ltd, a unit of state-owned China Minmetals, holds a 62.5 percent stake in the consortium buying Las Bambas. Guoxin International Investment Corp holds a 22.5 percent stake and CITIC Metal Co has 15 percent in the group. MMG shares surged as much as 11 percent on Monday in Hong Kong trading following the announcement.

The transaction, expected to close by the autumn, is subject to regulatory approval and a vote by MMG shareholders, Glencore said.