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.
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"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.
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