* Estimated mine value has fallen to $400 mln -sources
* Sale prospects complicated by new mining code in DRC
* ERG aims to reduce $6 bln debt burden
By Clara Denina and Dasha Afanasieva
LONDON, March 7 (Reuters) - Debt-laden Kazakh miner EurasianResources Group (ERG) has revived efforts to sell its Frontiercopper mine in Democratic Republic of Congo (DRC) despite a dropin valuation to about $400 million, two banking sources said.
The company, which is working with VTB Capital VTBR.MM andRothschild ROTH.PA to spin off and eventually list some of itsassets, had already tried to sell its international operationsin 2014 but failed to do so as the global economy slowed andcommodity prices dived. formerly known as ENRC, did not respond to requests forcomment.
A sale, however, is now complicated by the DRC parliament'sadoption in January of a new mining code to increase taxes androyalties for mining companies. Mining and oil accounts forabout 95 percent of export revenue.
The industry has been lobbying President Joseph Kabila notto sign the charter, saying it would discourage investment andviolate existing agreements. also owns copper and cobalt mines Boss Mining and Comideand some development and near-production assets in the DRC. Oneof the sources said ERG aims to leave the DRC within two years.
"It doesn't seem the right time to sell Congolese coppermines -- as there still uncertainty on the change in the miningcharter -- unless you are being forced into it by yourcreditors," the second source said.
ERG amassed a hefty debt of about $6 billion to its maincreditors, VTB and Sberbank SBER.MM , after its three foundersand the Kazakh government took it private.
CHINESE INTEREST?
A troubled six-year listing on the London Stock Exchange LSE.L ended in 2013 after boardroom battles, corruptionallegations and an investigation by the Serious Fraud Office.
The first source said that the company sent sale informationdocuments to interested parties three weeks ago.
"Chinese companies already operating in the country aregoing to take a look ... they are the most likely buyers," thesecond banking source said.
China Molybdenum 603993.SS , Zijin Mining Group 601899.SS and China Nonferrous Metals Corp 8306.HK already invest in theDRC. Other international mining companies in the country includeGlencore GLEN.L , Ivanhoe Mines IVN.TO and Randgold Resources RRS.L .
DRC is Africa's largest copper producer, a significant goldminer and one of the world's leading sources of cobalt, which isincreasingly sought after for use in electric car batteries.
The country, however, has suffered huge energy shortfalls,with its copper-mining Katanga region receiving only about halfthe power it needs from the national grid, forcing operators torely on expensive generators or imports.
"The whole saga is a bit of a sorry one ... issues aroundelectricity shortage and political risk in the country, coupledwith lower copper prices, lower metal grade at the mine, whichonly has a 20-25 year lifespan, might have affected thevaluation," said Paul Gait, senior research analyst atBernstein.
The price of copper CMCU3 on the London Metal Exchange hasdropped more than 30 percent to about $7,000 a tonne sincehitting a record high above $10,000 in 2011.