TORONTO/LONDON – Glencore has shelved plans to sell a copper mine in Chile that was expected to fetch about $500 million, after failing to achieve a high enough price, according to people familiar with the situation.
Along with other big mining companies, Glencore has been seeking to offload a range of assets to reduce debt following a commodities price crash, but a rally on raw materials markets and in the value of share prices of mining companies this year has taken away the need for urgent sales at any price.
Glencore began a process to sell its Lomas Bayas copper mine in Chile late last year, when anxiety about the health of some mining firms’ balance sheets was high.
A deal could not be reached partly because Glencore did not get the price it was looking for, the sources said, speaking on condition of anonymity. Further, Glencore feels it is in a stronger footing and is not compelled to make a sale at any cost, the sources said.
While it is always still possible that Glencore changes its mind or a potential buyer makes a much better offer, the company has decided to keep the asset for now, the sources said.
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