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Report: Anglo taps 2 investment banks for Quellaveco stake sale

Anglo American PLC tapped Goldman Sachs and Morgan Stanley to help in the sale of up to a 30% stake in its Quellaveco copper mine in Peru, and a transaction is expected to be announced within the next two months, Reuters reported May 17, citing sources.

Goldman Sachs did not respond to the newswire's request for comment, and Morgan Stanley declined to comment.

Japanese trading house Mitsubishi Corp., which owns an 18.1% interest in the project, is said to be interested in increasing its holding to just above 30%, one source said.

Other Japanese companies including Sumitomo Metal Mining Co. Ltd., Mitsui Mining & Smelting Co. Ltd., JX Nippon Mining Metals Corp and Itochu Corp. are also said to be considering putting in final offers for a minority stake, the sources added.

The mining major said in its 2017 financial results that it was willing to reduce its stake in Quellaveco to between 50% and 70%, from 81.9% currently.

Anglo CEO Mark Cutifani reiterated in an email to Reuters that the company will retain more than a 50% interest in the asset.

"The percentage that we syndicate will be based on value and a number of other commercial and other factors," he said.

Analysts had previously estimated the project value at between US$5 billion and US$6 billion.