Glencore is now in the process of confirming concessions in order alleviate Chinese worries over its stranglehold on the existing copper supplies. With the agreement, the final regulatory hurdle for the acquisition of Xstrata would have been cleared.
After months of tense negotiations, Glencore would be yielding ground, such as the sale of the firm's green field copper projects. One of these is the Las Bambas mine in Peru, which would start production in 2015. Another possible concession is providing China income with the copper production revenues.
Currently, Xstrata is the fourth largest copper producer in the world and is now working to achieve increase in output by up to 50% from 2011 levels by the year 2015. The add on production is expected from greenfield projects such as Las Bambas mine going online.
Combined, Xstrata and Glencore accounted for 7% of global copper supplies of the world and this is expected to rise as new mines located in Chile, Peru, Australia and African nations begin to produce copper for the market.
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