* Jiangxi already has existing operations in Peru
* Jiangxi seen likely to team up with Chinalco, MMG
* Magris Resources also interested in Glencore mine -source
* Limited interest from other global copper miners -sources
* Glencore keen to close the deal before year end
By Denny Thomas and Polly Yam
HONG KONG, Aug 23 Jiangxi Copper Co Ltd
has joined a list of potential Chinese suitors
interested in buying Glencore Xstrata Plc's $5
billion-plus Las Bambas copper mine in Peru, underscoring the
Chinese government's desire to plug a shortage in supply.
Glencore's sale of the mine comes at an opportune time for
China, which is the world's top importer of copper concentrate
but produces only about a third of the amount it needs,
according to recent production data.
Jiangxi, China's biggest copper producer, may eventually
team up with either Chinalco Mining Corp International
or MMG Ltd, which are also evaluating bids for the
mine, one of several sources said. All three might team up
together, the source said.
If Jiangxi did agree to join a consortium bid, it would
likely play a junior role, the people said, adding that a
consortium would also be seeking financial investors to back any
The auction has generated limited interest from other copper
miners around the world so far, the people added. All the
sources declined to be identified due to the confidential nature
of the discussions.
Toronto-based Magris Resources, a private equity firm led by
former Barrick Gold Corp Chief Executive Aaron Regent,
is also in the running for the asset, said a source familiar
with the situation.
The source, who is not authorized to speak publicly about
the matter, said Magris is unlikely to bid on its own and the
firm will likely look to partner with other players on any bid.
Magris Resources declined to comment.
Glencore's Peru mine is scheduled to produce 400,000 tons of
copper a year starting in 2015 for at least five years.
Jiangxi Copper already has operations in Peru. It owns 40
percent of the Northern Peru copper mining project, which is
expected to start production between 2014 and 2016. State-owned
China Minmetals Non-Ferrous Metals owns 60 percent of the mine.
Glencore has invited first round bids for the Las
Bambas mine by mid-September. Glencore agreed to sell the mine
in return for Beijing's blessing for its $35 billion purchase of
Under a deal struck with Beijing's Ministry of Commerce in
April, Glencore has until end-August 2014 to find a buyer but
Chief Executive Ivan Glasenberg said this week he hoped to reach
an agreement by the end of this year.
Chinalco Mining Corp is working with Goldman Sachs
and Morgan Stanley for its planned bid, while MMG has
engaged Citigroup and Bank of America Corp, the
Glencore, MMG and Jiangxi declined to comment.
Citigroup and Bank of America declined to comment, while
Goldman Sachs and Morgan Stanley did not offer an immediate