Glencore take majority control of DRC copper mine
IRJ – May 22 - Commodities trader Glencore said today that it has taken majority control of its Mutanda copper mine in Democratic Republic of Congo by paying $340 million to acquire a further 24.49 per cent in Samref Overseas, a holding company above Mutanda, and another 1 per cent in Samref Congo, a second holding company, taking its whole equity interest in Mutanda Mining to 60 per cent.
"The acquisition represents a significant first step towards achieving Glencore's previously announced intention to merge the Mutanda and Kansuki mining operations," Glencore told Reuters.
Mutanda and Kansuki combined will produce 160,000 tonnes per year of copper cathodes and 23,000 tonnes of cobalt in hydroxide by the first half of 2013. Glencore's plans have led it to also acquire around $140 million of shareholder debts as part of the deal.
The announcement comes in the midst of the much anticipated $90 billion “GlenStrata merger of equals".
According to the Financial Times commodities note, long only funds have been spotted buying Glencore, which will have a free float of 52 per cent on May 24 when some 36 per cent of shares come off lock-up. The implication is that index linked tracker funds will be buying the Swiss trader as it gains a greater weighting in the FTSE, putting the company in a good position to see the merger voted through.
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