Zijin Mining buying $200m of Glencore convertible bonds

Zijin Mining Group Co, China's largest gold producer, will buy $200 million of convertible bonds issued by Glencore International AG to gain investment opportunities with the world's biggest commodity trader.

"As a result of the transaction, the company has an opportunity to make an overseas investment in mining assets through investment in Glencore," the Fujian province-based company said in a filing to the Hong Kong stock exchange yesterday.

The investment, along with Zijin's purchase of Indophil Resources NL, underscores the Chinese company's plan to increase overseas investment before asset prices soar. Glencore yesterday said it sold as much as $2.2 billion of the bonds, in what may be the first step toward an initial public offering.