LONDON (Reuters) - Miner Xstrata (XTA.L) said on Sunday 9 August it is in talks to possibly sell a major stake in a South America mining project.

Photo: REUTERS/Michael Buholzer

The company, which is in a merger battle with peer Anglo American (AAL.L) said it has received expressions of interest in the "introduction of an additional partner into the El Morro copper-gold project in Chile, or the eventual sale of Xstrata's 70 percent interest."

It added it has not yet reached a decision on a possible sale and is evaluating the approaches.

A report in the Independent on Sunday 9 August said Chinese companies are particularly interested in the $700 million stake, quoting industry sources.

(Reporting by Lorraine Turner; Editing by Mike Nesbit)