Xstrata says receives offers for Chile mine stake

LONDON (Reuters) - Miner Xstrata (XTA.L) said on Sunday it is in talks to possibly sell a major stake in a South America mining project. 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 said Chinese companies are particularly interested in the $700 million stake, quoting industry sources. (Reporting by Lorraine Turner; Editing by Mike Nesbit)