Anglo American to give Mitsubishi option to boost Peru Quellaveco stake

(Adds comments on spending on capital projects)

By Anthony Esposito and Fabian Cambero

SANTIAGO, April 16 (Reuters) - Anglo American Plc (LSE: AAL.L - news) is looking at syndicating its Quellaveco copper project in Peru and having partner Mitsubishi Corp increase its 18.1 percent stake, said Hennie Faul, the head of Anglo's copper business.

Southern Copper Corp (NYSE: SCCO - news) said last year that it still hoped to buy a share in the $3.3 billion Quellaveco project, after negotiations on a potential sale fell apart because each company wanted a controlling stake.

"We haven't engaged in any further discussions with Southern Copper," Faul said in an interview on Wednesday during the CESCO/CRU conference in Santiago.

"If you're going to syndicate that and increase the partnership, we've got a very good partner in Mitsubishi. That'll be our first option, to look at our current partner," Faul said.

He also said Anglo has tightened its belt and is reevaluating spending on certain capital projects, or even delaying them because of lower copper prices eating into profits.

"We need to evaluate all our capital projects and there are certain projects that may not be right to be executed right now," said Faul. (Editing by Grant McCool)