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Glencore's share price is flat after reports that it is putting another one of its Chilean assets up for sale

Oliver Gill
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SWITZERLAND COMMODITIES COMPANY GLENCORE
Glencore has been open in saying that it is keen to de-lever its balance sheet (Source: Getty)

Glencore has put another one of its assets up for sale as part of a strategy to lighten its heavy debt burden.

The reported asset in question is Chilean-based Energia Austral hydropower, which it owns through a joint venture partnership with Australian firm Origin Energy.

Energia Austral comprises three hydropower projects currently under development that will have a capacity of 1,000 megawatts (MW). The biggest is the 550 (MW) Cuervo asset, which will be the third largest hydropower source in Chile.

8 September 2016 @ 3:15pmGlencore (GLEN)

Glencore's 65 per cent interest in the company was inherited from its purchase of fellow miner Xstrata in 2012.

The joint venture has been subject to environmental challenges, protests and delays in recent years.

The sale price and deadline are currently unknown, however Energia Austral has spent a $220 million (£165m) developing the assets so far.

Last month, Glencore set a target of cutting between $16.5bn and $17.5bn by the end of 2016.

And the FTSE 100 mining behemoth was forced to shelve plans to sell another asset in Chile, the Lomas Bayas copper mine, which it had hoped would realise $500m.

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