UPDATE 1-Canadian miner Teck hires Barclays to sell Peru mine stake-sources

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Nov 20 (Reuters) - Canada's Teck Resources Ltd has hired Barclays to sell all of its 80% stake in its Zafranal copper asset in Peru, as the diversified miner accelerates efforts to exit advanced projects and focus on its massive Chilean expansion, two banking sources told Reuters on Wednesday.

Teck is likely to sell or seek a partner for Zafranal, Chief Executive Officer Don Lindsay has said.

The company and its advisors are sounding out interest from mining firms already operating in Peru for the copper-gold project that could fetch up to $500 million, one of the sources said.

However, the project would need a further injection of more than $1 billion before it can start production, the source said.

A representative for Teck company declined to comment on the report, citing company policy not to comment on speculation. A Barclays representative was not immediately available for comment.

Japan's Mitsubishi Materials Corp, which owns the remaining 20% of Zafranal, was also not immediately available to comment.

The sources declined to be identified as the information on bank hiring is not public.

Vancouver-based Teck last year said it would move forward with its $4.7 billion Quebrada Blanca phase two copper project in Chile.

First production is targeted for 2021 and forecast to reach 316,000 tonnes of copper equivalent per year for the first five full years of mine life.

The company last month said it would cut staff and defer some planned capital projects to cope with economic uncertainty that has weighed on commodity prices. (Reporting by Clara Denina in London; Writing by Jeff Lewis; Editing by Sandra Maler and Sonya Hepinstall)