Bloomberg News

Glencore Ends $475 Million Proposal to Buy Peru Copper Mine

December 01, 2011

(Updates with Glencore statement in second paragraph.)

Nov. 30 (Bloomberg) -- Glencore International Plc, the biggest publicly traded commodities supplier, ended a proposal to buy a majority stake in a South American copper project for $475 million from CST Mining Group Ltd.

Glencore terminated the deal to buy 70 percent of the Mina Justa project in Peru because it couldn’t reach agreement with joint-venture partner Marcobre S.A.C., Hong Kong-based CST Mining said in a statement today. Not all conditions for the sale were met by today’s deadline and the transaction has been terminated, Glencore said in its own statement.

“The company will continue to explore its options in relation to the Mina Justa project,” CST Mining said in the statement. The company’s vice-chairman is Owen Hegarty, who holds the same post at Hong Kong-based G-Resources Group Ltd.

Glencore had agreed to buy CST Resources Ltd., a CST unit that owns 70 percent of Marcobre, CST Mining said in July. Glencore said Oct. 3 it had agreed with CST to extend the period for satisfying conditions of the acquisition to Nov. 30.

CST fell 16 percent to 8.4 Hong Kong cents at 3:34 p.m. local time. The stock has fallen 57 percent this year, compared with a 22 percent drop in the Hang Seng Index.

--Editors: John Viljoen, Ana Monteiro

To contact the reporters on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net; Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editors responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net; John Viljoen at jviljoen@bloomberg.net


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