The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar

When Glencore and Xstrata merged earlier this year in a $30 billion deal, the Chinese regulators demanded that Glencore sell its Las Bambas mine in Peru by September 30, 2014 in order for them to approve the massive merger.  It appears that Chinalco Mining, the listed copper arm of the state-owned Aluminum Corp of China is interested in the project and will be part of the bidding process being headed by Goldman Sachs and Morgan Stanley.

BMO Capital Markets values the project at $6.5 billion and many others estimate its value closer to $5 billion.  Glencore said the sale price will be the higher of either an evaluation by two independent investment banks or the total of all costs incurred by Xstrata and/or Glencore.  If Glencore is unable to sell the project by September 30, 2014 then, under the terms of their agreement with the Chinese authorities, they will have to rapidly sell one of four other projects (Tampakan, Alumbrera, El Pachon, Frieda River).  Las Bambas is expected to produce 400,000 metric tons of copper per year and cost approximately $5.2 billion to construct.  China currently consumes approximately 30% of the global annual copper production.

Bloomberg article here: Chinalco Mining Said to Study Bidding for Glencore's Bambas Mine