Glencore announces sale of stake in Zambia's Mopani in US$1.5 bln deal
JOHANNESBURG - Mining giant Glencore said on Tuesday its subsidiary Carlisa Investments had signed an agreement to transfer its 90 percent interest in Zambia’s Mopani Copper Mines to state-owned ZCCM, which already holds the other 10 percent.
“Completion of the sale is conditional on receipt of certain regulatory approvals in Zambia and on the approval of the shareholders and board of directors of ZCCM, and is expected to occur within the next three months,” Glencore said in a statement.
Mopani has been funded by borrowings from Carlisa and other members of the Glencore group. On completion of the deal, US$1.5 billion (R22.41 billion) of debt will remain owed by Mopani to Glencore group creditors.
Interest under the debt will be capitalised for the first three years after completion, and thereafter will be payable quarterly.
After completion of the sale, Glencore will retain offtake rights in respect of Mopani’s copper production until the transaction debt has been repaid in full.
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities.
Its operations comprise around 150 mining and metallurgical sites and oil production assets.
Glencore has a strong footprint in over 35 countries in both established and emerging regions for natural resources and its customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors.
The group also provides financing, logistics and other services to producers and consumers of commodities and its companies employ around 160,000 people.
African News Agency