China Molybdenum to launch bid for $2.15bn overseas mining project

7 July 2015 (Last Updated July 7th, 2015 18:30)

China Molybdenum (CMOC) is planning to launch a bid for an overseas mining project valued at around $2.15bn.

China Molybdenum (CMOC) is planning to launch a bid for an overseas mining project valued at around $2.15bn.

The company said that it has decided to launch a bid for 'certain overseas mining assets from an international mining company'.

Reuters quoted CMOC saying that the targeted asset generates stable profits as well as cash flow.

"The Chinese company has been tracking the asset sale for almost six months, and proposes to buy partial or the complete interests in the project."

The Chinese company has been tracking the asset sale for almost six months, and proposes to buy partial or the complete interests in the project.

Based on the sale process run by Barrick Gold for its Zaldivar copper mine in Chile for several months, it has been observed that CMOC is targeting the mine, even though it is not mentioned in its statement.

In April, Barrick Gold announced its intention sell up to 50% of the mine worth about $1bn in a bid to focus on its core operation.

BHP Billiton was cited as a potential bidder for Barrick Gold's Zaldivar mine when it was put up for sale on the market.

In June, Teck Resources has also entered the final bidding round to acquire a stake in the copper mine.

Said to have been active overseas, CMOC bought Rio Tinto's Northparkes copper mine in Australia in 2013 in a transaction worth $820m.