22 Jun 2012

Miner Xstrata to sell PNG copper stake

8:06 am on 22 June 2012

The Global miner Xstrata has put up for sale a stake in the Frieda River copper project in Papua New Guinea, potentially worth more than two billion dollars, as part of a review of its development projects worldwide.

Like other major miners under pressure to conserve capital amid uncertainty over global growth, rising costs and falling commodity prices, the world No.4 copper producer Xstrata has flagged it may slow down project spending.

Reuters reports that Xstrata has not yet decided whether to sell all or part of its 81.8 percent stake in Frieda River, an Xstrata.

A spokesperson says as part of this process the company is assessing the interest of other investors in the Frieda River Project in Papua New Guinea.

Merrill Lynch is advising Xstrata on the potential sale.