Copper wire pictured at a factory in China, June 18, 2011.China Daily/Reuters
Anglo American Plc will soon formally put two of its copper mines in Chile up for sale, according to people familiar with the matter.
The London-based mining giant plans to divest the Mantoverde and Mantos Blancos mines, the sources said.
The sale is part of Anglo chief executive Mark Cutifani's strategy to streamline operations, and rid the miner of underperforming assets.
Mr. Cutifani, a former executive with defunct Canadian nickel miner Inco, became Anglo's CEO last year as the mining industry struggled to adjust to lower commodity prices.
He has been charged with turning Anglo's fortunes around, and is striving to nearly double the company's return on capital employed to 15 per cent by 2016.
So far, Mr. Cutifani has slashed his management team and consolidated Anglo's business units, which produce a vast array of resources, from iron ore and thermal coal to copper and platinum.
Other big mining companies such as Canada's Barrick Gold Corp. have also cut costs and divested assets to remain viable amid low metal prices.
The assets are expected to generate interest among a handful of mining-focused private equity shops, such as Canadian mining executive Aaron Regent's firm, which unsuccessfully bid for one of Freeport-McMoRan Inc.'s copper mines and Glencore Plc's Las Bambas mine in Peru.
Both Mantoverde and Mantos Blancos have declined in production over the past five years.
"We don't comment on speculation," an Anglo spokeswoman said.
Rachelle Younglai