MMG has agreed to buy the Las Bambas project from Glencore Xstrata in a consortium with two other Chinese companies. But Michelmore said some risks had been identified during the due diligence process, the implications of which would become clearer after the acquisition is complete.
“We need to get much closer to the project for a more accurate estimate of both capital and timing to complete,” Michelmore said during a conference call after the acquisition was announced.
“Glencore has projected the middle of next year for completion of project but we haven’t given our comment on that and we will wait till we have completed the transaction, we will have a better view of the timing by that stage,” he said.
MMG is buying the project for $5.85 billion in cash together with Guoxin International Investment Corp Ltd and...