Xstrata dumps QLD copper project

Xstrata has pulled out of a deal to buy a majority stake in a Queensland copper project currently held by Perth-based junior Altona Mining.

Last year Xstrata hinted it would exercise an option to buy a 51 per cent stake in Altona's Roseby copper-gold project north of Mt Isa.

But the two miners have been unable to agree on a price for the asset, even after an independent valuer was called in to settle the dispute.

In a statement Altona managing director Alistair Cowden said while Xstrata had backed away from the deal work would continue on developing project.

“Now that the uncertainty of the Xstrata Copper option is resolved, the company is able to move forward to realise value from the project,” he said.

“Altona and its advisors will now progress options for the partnering, financing and development of the project.”

In response to the failed deal Xstrata officials said while they had not exercised the option they were still “committed to mining investment in north-west Queensland”.

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