Citic Metal Said to Join Minmetals Bidding for Glencore Mine

Citic Metal Co., a unit of Chinese state-backed conglomerate Citic Group Corp., joined China Minmetals Corp. in bidding for Glencore Xstrata Plc’s copper project in Peru, said two people with knowledge of the matter.

Minmetals, China’s biggest state-owned metals trader, is leading the group, which offered about $5 billion for the Las Bambas mining project, said the people, who asked not to be identified because the information is private. Minmetals plans to contribute about half of the funding for the bid, while Citic Metal would put in about 30 percent, the people said.

Glencore is selling Las Bambas as part of an agreement to obtain Chinese regulatory approval for the Baar, Switzerland-based company’s $29 billion takeover of Xstrata Plc this year. As many as four Chinese bidders are expected to make offers for the project, Glencore Chief Executive Officer Ivan Glasenberg said last month.

China Reform Holding Corp., an investment company backed by China’s State-Owned Assets Supervision and Administration Commission, may contribute the remaining 20 percent of the financing, the people said. SASAC is the agency overseeing Chinese government assets.

The bidding group’s composition may change as the sale process is in its early stages, the people said.

Ma Jun, spokesman for Minmetals, said he’s not aware of developments in the bidding for Las Bambas. A call made to Citic Metal’s general line in Beijing went unanswered. China Reform Holding didn’t immediately respond to questions sent by fax. A spokesman for Glencore declined to comment.

Glencore rose as much as 2.6 percent in London trading, the biggest intraday gain since Sept. 19, and was 2.3 percent higher at 329.9 pence at 12:02 p.m.

Bank of America Corp. and Citigroup Inc. are advising the Minmetals-led consortium, the people said.

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