Mining and marketing giant Glencore has completed the acquisition of a further stake in Samref Overseas, putting it one step closer to merge two of its mining operations in the Democratic Republic of the Congo (DRC).
Glencore bought a 24.49% equity interest in Samref Overseas from High Grade Minerals and a further 1% stake from Groupe Bazano in separate transactions which cost a total of $340m. Some $140m in shareholder debts owed to High Grade Minerals were also acquired.
These transactions boosted Glencore's stake in Samref Overseas from 50% to 74.49% and, indirectly, increased its in DRC-based copper and cobalt producer Mutanda Mining to 60% ("thereby obtaining majority control").
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The acquisition represents a significant first step towards achieving Glencore's previously announced intention to merge the Mutanda and Kansuki mining operations," the company announced on Tuesday. The merger would result in a combined entity producing 160k tonnes per annum (ktpa) of copper cathodes and 23ktpa of cobalt in hydroxide by the first half of next year.
"This expansion of capacity from Mutanda's existing 110 ktpa to 160 ktpa represents the first stage of the expansion of the combined mining operations."
Glencore also said it has the right to acquire the remaining stake (25.51%) in Samref Overseas (held by High Grade Minerals) for $430m in December 2013.
BC
-
What will 2024 general election mean for UK house prices?UK house prices have been seeing a spring bounce. But has Rishi Sunak’s snap election changed the property market’s outlook?
-
What will the general election mean for your taxes?Taxes are in focus as we race towards the 4 July general election. What can you expect from the two main parties?
