CST Mining Plans to Sell Peru Copper Mine by June, Hegarty Says
CST Mining Group Ltd. (985), a Hong Kong- listed copper producer, said it plans to dispose of its stake in the Mina Justa project in Peru before June after appointing Morgan Stanley as financial adviser for the sale last month.
“We’ll try to do it as soon as we can,” Owen Hegarty, the company’s vice chairman, said by phone from Melbourne. “It’s pretty much in the stage of people doing their evaluations.”
Glencore International Plc terminated a $475 million proposal in November to buy the 70 percent stake in the project as it couldn’t reach an agreement with CST Mining’s joint venture partner Marcobre S.A.C. CST Mining has a “good number” of interested parties, Hegarty said.
The offer by Glencore is a price “benchmark” for interested parties, he said.
The shares have fallen 54 percent in the past year, compared with an 8.8 percent drop in the benchmark Hang Seng Index. CST gained 5.8 percent to close at 11 Hong Kong cents today.
To contact the reporter on this story: Michelle Yun in Hong Kong at myun11@bloomberg.net
To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net.
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