MINING giant Glencore will attempt to sell copper mines in Australia and Chile as it tries to tackle its massive debt.
THE company on Monday, said it would try to sell its wholly-owned Cobar copper mine in western NSW and its Lomas Bayas copper mine in Chile. The sale process was in response to Glencore receiving a number of unsolicited expressions for the mines from various potential buyers.
"This will allow potential buyers to bid to purchase either one or both of the mines and may or may not result in a sale," the company said in a statement on Monday.
Cobar is a high-grade underground mine and concentrate plant that produces around 50,000 tonnes of copper each year.
Lomas Bayas is a low-cost open pit mine in Chile's Atacama desert that produces around 75,000 tonnes of copper cathode a year.
Funds from the sale would be welcomed by Glencore, with the Switzerland-based commodities giant's financial health under immense scrutiny due to its $US29 billion worth of debt.
Shares in the firm, down more than 60 per cent this year, have fluctuated wildly amid investor fears that sinking commodity prices will affect its ability to meet outstanding debt obligations.
Glencore announced in September it would suspend dividends, sell new shares and lower copper production in an effort to slash its debt amid the slump in global commodities prices.
The plan included raising $2 billion from asset sales.
Its Chilean operations include stakes in three copper mines and a hydro-electricity project, while its Australian operations include a string of coal mines which the company has warned it could close if they do not perform.
Last week, Glencore said it would cut zinc production across its mining operations in Australia, South America and Kazakhstan by a third, resulting in the loss of more than 500 Australian jobs. Glencore placed its shares on the Hong Kong stock exchange in a trading halt ahead of the company's latest announcement.
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