On Monday, Glencore Xstrata announced that it has sold all its holdings in Las Bambas, reported Ventures Africa. Las Bambas, a copper mine in Peru, was sold in an all cash transaction valued USD5.8 billion.

The copper mine in Peru was sold to a group led by China MinMetals. The Chinese government owned company now holds a little higher than 60 percent of the group that bought Las Bambas, reported Ventures Africa.
In a statement, the JSE listed firm said that it would, money received from the sale would be used to “de-gear” the balance sheet of the company and would aid Glencore in searching for other locations for investment. A de-gearing effort would be sought to lessen the debt of the company.

The deal is yet to be approved after regulatory conditions are satisfactorily met.

Glencore CEO Ivan Glasenberg said that the sale of its asset in Peru showed that the company is serious about unlocking the value of its shareholders. Glasenberg also added that the company has used a lot of money to sustain Las Bambas following its acquisition of Xstrata last year. This prompted the company’s decision to get hold of the consortium’s offer for the copper mine in Peru, reported Ventures Africa.