Aditya Birla Minerals is looking for a buyer for its Mt Gordon copper mine in Queensland which is set to sell for around $250 million.
Bids for the mine, where operation were suspended in April due to falling metals prices, are due to start at the end of July.
In February, Aditya Birla Minerals, 51 per cent-owned by Hindalco Industries, a subsidiary of Indian conglomerate Aditya Birla Group, announced it had appointed ANZ Bank’s corporate advisory division to start a strategic review of Mount Gordon, The Australian reported.
Located about 120 kilometres north of Mt Isa, the Mt Gordon operation was producing copper in concentrate at an annual production rate of almost 20000 tonnes.
However the company said the mine's production has been lower than expected, resulting in the unit operating cost per pound of copper produced becoming “unacceptably high”.
The price of copper has fallen by about seven per cent in the past 12 months with prices falling to their lowest level in three years in June.
Rio Tinto is selling its majority stake in the Northparkes copper and gold mine, located in Central West New South Wales, while earlier this year Xstrata pulled out of a deal to buy a majority stake in a copper project north of Mt Isa.