Xstrata will probably back in to Los Azules given this news...

_____

http://www.bloomberg.com/apps/news?pid=20601086&sid=aABdtVUUuNgM#

Xstrata Approached Over Sale of 70% Stake in Chile Copper Mine

By Brett Foley

Aug. 10 (Bloomberg) -- Xstrata Plc, the fourth-largest copper producer, received approaches to sell 70 percent of its El Morro project in Chile that may lead to another partner joining or the company selling its interest in the mine.

“We are evaluating the approaches we have received and no decision has been made on whether or not to divest El Morro or dilute our stake,” London-based Xstrata spokeswoman Claire Divver said today in an e-mailed statement.

The Zug, Switzerland-based company may raise as much as $700 million by selling the stake, which it inherited as part of the takeover of Falconbridge Ltd. in 2006, the Independent on Sunday reported yesterday. Chinese companies are interested in buying the mine, the newspaper added.

El Morro, which is 30 percent-owned by New Gold Inc., has 489 million metric tons of measured and indicated ore resources containing 0.59 percent copper, according to Xstrata’s Web site.