Glencore seals agreement to buy £295m Peruvian copper assets

COMMODITIES giant Glencore confirmed its agreement to acquire $475m (£295m) of copper assets in Peru yesterday.

The deal was struck between its subsidiary Glencore International and Hong Kong-based CST Mining and will see Glencore take a 70 per cent stake in Marcobre, the owner of the Mina Justa copper project in southern Peru.

The takeover gives Glencore access to a resource pile of more than 3m tonnes of contained copper and strengthens its position as a producer as well as a trader in the sought-after industrial metal.

The takeover is subject to due diligence but is expected to complete in October and follows Glencore’s recent purchase of Sable, a Zambian copper producer, for £28m last month.

“Mina Justa would ideally complement Glencore’s existing polymetallic mining operations in Peru, and add significant value to our worldwide group of copper mining assets,” said Daniel Mate, co-director of Glencore’s zinc, copper and lead division.