BRIEF-Glencore Xstrata sells Las Bambas copper mine project $5.85 bln

April 13 Sun Apr 13, 2014 1:22pm EDT

April 13 (Reuters) - Glencore Xstrata Plc

Has signed an agreement for the sale of its entire interest in the Las Bambas copper mine project

Sold to a consortium owned 62.5% by MMG Limited, 22.5% by GUOXIN International Investment Corporation Limited and 15.0% by CITIC Metal Co., Limited

The consideration for the transaction is approximately us$5.85 billion, payable to glencore

In addition, all capital expenditure and other costs incurred in developing las bambas in the period from 1 january 2014 to closing will also be payable by the consortium

Proceeds from the sale will immediately and materially de-gear glencore's balance sheet

Glencore will continue to look for opportunities to reinvest capital in line with our published returns criteria

Any surplus capital, subject to maintaining an efficient balance glencore's strong bbb/baa credit ratings guidance, will be returned to shareholders, within an appropriate time frame and structure

The transaction is subject to certain regulatory approvals (including mofcom) as well as the approval of mmg limited shareholders

Transaction is expected to close prior to the end of q3 2014 Source text for Eikon: Further company coverage: