Glencore Plc has announced in a press release that it is commencing the process of selling its Cobar copper mine in Australia and the Lomas Bayas copper mine in Chile.
The sale is a response to the high number of unsolicited expressions of interests for these mines from potential buyers.
Reuters adds that the sale is also part of Glencore's plan to reduce the company's debt burden that was accumulated during an asset purchase spree.
The asset buying spree has shaken the confidence of investors in Glencore.
Reuters adds that Glencore has about $30 billion in net debt and the selling its assets is part of a broader plan to reduce about a third of its debt.
Reducing its debt is also a way for the company to regain the trust of its investors after its shares dropped to record lows this year as global commodity prices weaken.
An analyst based in London told Reuters that both the Cobar and Lomas Bayas copper mines could fetch less than $300 million combined.
The small amount is because both copper mines are very small.
Glencore said in the press release that the Cobar mine produces about 50,000 tonnes of copper in concentrate per annum.
The Lomas Bayas produces approximately 75,000 tonnes of copper cathode per annum.
Reuters adds that an analyst said the selling of Glencore's two small copper mines doesn't really make a dent in the company's debt.
"When you've got $50 billion in gross debt, it doesn't move the needle," the analyst said. "But it's just another reminder that everything's potentially for sale at the right price."
A source close to Glencore told Reuters that if the sale of the two mines will push through, it would be on top of the $2 billion profit the company is expecting to get from selling the minority stake in its agriculture business.
The company also plans to sell the rights to precious metals that it extracted from its copper and zinc mines.
Glencore said in the press release that the sale process of the two copper mines will allow potential buyers to bid on purchasing one or both mines.
The bid, though, may or may not result in a sale.
