Australia-based mining company PanAust is planning to acquire Glencore Xstrata’s majority stake in Frieda River deposit located in Papua New Guinea.

The Australian copper and gold miner is in discussion to buy 82% stake in the project from Glencore, The Wall Street Journal reported citing undisclosed sources.

Glencore previously estimated the development cost of Frieda River deposit to be $5.6bn. The company inherited the project as part of its takeover of Xstrata in early 2013.

The remaining 18% interest in Frieda River is owned by Highlands Pacific.