Australia’s Altona Mining may sell its Roseby copper project or seek to merge itself with another firm after global miner Xstrata decided not to buy into the copper project in the state of Queensland, Altona’s managing director said on Monday.
Xstrata chose not to exercise an option to buy a 51 per cent stake in the project after seeing the valuation put on it by an independent party, an Xstrata spokesman said. Altona and Xstrata did not disclose the price.
Credit Suisse is advising Altona on the sale process, which Altona’s Alistair Cowden expected would take about six months.
“We are starting a process essentially to look at a strategic transaction,” Cowden said. He said the options were to sell a stake in the project or the entire project or even consider merging with another company with a stronger balance sheet.
“Everything’s always for sale,” he said.
Analysts have speculated Chinese miner MMG, which is developing the neighbouring A$1.49 billion (HK$12.17 billion) Dugald River zinc-lead-silver mine, might be interested in the Roseby project.
Melbourne-based MMG, which has repeatedly flagged that it is on the lookout for base metals acquisitions, declined to comment.
