Chinalco mulls buying copper mines in Peru

Chinalco Mining is considering acquiring Glencore Xstrata's copper mines in Peru, according to the head of the non-ferrous and non-aluminium metals unit of state-backed aluminium giant Chinalco.

"We are certainly looking at this prospect and are studying it, but I can't comment on the progress of our efforts because it involves many factors," chief executive Peng Huaisheng said.

Peng would not say whether any firm was advising it on the potential deal, which involves three mines worth US$5 billion, according to a Reuters report in June. He also declined to say whether it will join other state firms in a bid.

Chinalco and MMG, the Hong Kong-listed mining unit of state-run China Minmetals - the nation's largest metals trader - are among potential bidders.

Swiss-based commodities giant Glencore was forced by Beijing to sell Xstrata's Las Bambas copper project in Peru as a condition for mainland anti-monopoly officials to approve the two companies' US$76 billion merger earlier this year.

Anglo-Swiss Glencore Xstrata agreed in April to sell the mines to a buyer approved by the Ministry of Commerce by September next year, and to maintain copper supply to China at "fair and reasonable" prices.