According to sources familiar with the matter, three Chinese groups are still bidding for a copper mine in Botswana that could fetch about $2 billion.
Zijin Mining Group Co., Minmetals Resources Co., and Aluminum Corp. of China have entered the second round of bidding for the Houmaao project, people familiar with the matter said.
MMG has been in talks to partner with Citic Metal Co., a unit of China's state-owned Citic Group, the people said. They spoke on the condition of anonymity because it was a private matter. Impala Platinum Holdings Ltd and South African mining company Exxaro Resources Ltd, people familiar with the matter said. Also made the list.
GNRI, a London-based private equity firm that is Khoemacau's majority shareholder, could pick a winner as early as the next few weeks, people familiar with the matter said. Negotiations are ongoing and there is no certainty that a transaction will be concluded.
The world's biggest miners, including BHP Group and Rio Tinto Group, are looking to expand copper production as consumption of the metal from electric vehicles and renewable energy is expected to soar.
After starting operations in mid-2021, Khoemacau's annual production will increase to 60,000 tonnes, which will add to the significant copper portfolio already owned by Zijin Mining and MMG. Located in the Kalahari copper belt stretching from northwestern Botswana to western Namibia, the mine could expand to about 130,000 tons of annual production, according to the company's website.
Representatives for Citic Metal, Implats and Haoma declined to comment. Spokesmen for Chinalco, Exxaro, GNRI and MMG didn't immediately respond to requests for comment, and a Zijin representative said they weren't aware of the matter.
GNRI was formed following a management buy-out of Barclays Plc's natural resources private equity business in 2015.
