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Chinese companies could buy Glencore's Kazakh mine

Johannesburg - Chinese gold producers Shandong Gold Mining and Zhongjin Gold Corporation are among potential bidders for Glencore's [JSE:GLN] gold mine in Kazakhstan, reports say.

Glencore may be seeking about $2bn for the asset, reports said.

Zijin Mining Group, one of China’s largest gold producers, is also potentially interested in the Vasilkovskoye mine, which Glencore put on the block earlier this year. No final agreements have been reached and Glencore may decide to retain the mine, the reports said.

Glencore has been selling assets and trimming costs as part of an effort to cut net debt to as low as $17bn this year, compared with $25.9bn at the end of 2015. The company was considering options for its Kazakh gold mine that include selling the asset or its future production.

Glencore also agreed to sell just-under a 10% stake in its agriculture unit to Canada’s British Columbia Investment Management Corporation for $624.9m in cash on Wednesday.

Gold has rallied 19% this year as low or negative rates boost the appeal of the metal, while a sputtering dollar and concerns over economic growth spur demand for bullion as a store of value.

A spokesperson for Glencore declined to comment.

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