British metals giant Vedanta announced yesterday it would buy bankrupt US copper miner Asarco for $1.7 billion - far below the sum it first bid when commodity prices were booming.

Vedanta Resources Plc' purchase, through its Indian unit Sterlite Industries, would make it one of the world's leading copper producers.

Vedanta, listed on the London Stock Exchange but whose main assets are in India, said the purchase was part of a drive by Sterlite to become a diversified copper producer and gain a North American presence.

Sterlite, India's top copper producer, has "signed a new agreement with Asarco LLC for purchase of substantially all the operating assets of Asarco," a company statement said.