Reuters News Service is reporting that
Teck Resources Ltd. (
TSX: TCK.B,
Stock Forum), possibly backed by a Chinese partner has made it to the second round of bidding for
Barrick Gold Corp.’s (
TSX: T.ABX,
Stock Forum) Zaldivar mine in Chile.
But it faces strong competition, writes Scotia Capital in its Daily Mining Scoop report.
Mick Davis' X2 Resources, long considered the likely front runner given its strong cash position, is out of the race for a stake in Zaldivar after it was outbid in the first round of the sale process, according to three sources close to the matter.
"There were seven bids higher than that of X2," said a London-based banking source with knowledge of the matter during an interview with Reuters. "They couldn't make the numbers work."
Reuters reported earlier on Wednesday that X2, and rival miner Glencore, were among companies that placed bids last week for two Anglo American copper mines in Chile, citing sources. The deadline for second round bids for Zaldivar is early July, said two industry sources based in Canada.
Others in the running for Zaldivar likely include Canadian-based base metals miner Teck Resources, possibly backed by a Chinese partner; mid-sized Canadian copper miner
HudBay Minerals Inc. (
TSX: T.HBM,
Stock Forum), also with a partner; and an unnamed Chinese miner, several sources said.