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Glencore held a preliminary discussion on the sale of its multi -million dollar copper and cobalt mines in the Democratic Republic of Congo, in what would be a significant shift in the strategy of the largest Western investor in the African country.
Last month, the FTSE 100 Group rejected an unwanted offer for mines from a potential customer in the Middle East, because the offer was too low, according to people who were familiar with the issue.
The company would consider selling a piece or all its Congolian property at a right price, to be introduced to several people with this issue.
Some of the people added that the company did not begin the formal sale process and it was possible that no work would be completed.
Glencore He owns a Mutanda copper-cobalt mine and a 75 percent stake at Kamoto Copper, in which Congole Rudar also has a posture. Analysts at RBC are worth $ 6.8 billion.
The mines were the key part of Glencore for Western car manufacturers to be their supplier for the electric vehicle metal package.
A global copper rush, a red metal used in wiring, cables and electric vehicles, has launched a wave of merging and acquisitions among the main miners.
However, the Congoac mines were far less profitable than the other Glencore’s copper assets – earning only $ 195 million in earnings in 2023. On revenues of $ 2.4 billion – due to operational failures and low cobalt prices.
Last February Glencore took damage before taxation of $ 1 billion on Bakar Congole Mines due to poor conditions in the cobalt market and resolving tax dispute.
Glencore said in a statement: “At the end of last year, Glencore received an unwanted approach regarding his DR Congo business. Access was rejected. Glencore did not hire any bank or advisers and did not conduct a sale procedure for his DR Congo business.”
In recent weeks, Glencore has been separately held informal discussions with potential customers about the future of his property in Kazakhstan, according to people who are familiar with conversations.
Last year, Glencore left the sales procedure for Kazzinc, a large product manufacturer of zinc, lead and gold with a 70 percent stake. RBC estimates a $ 5.1 billion share value.
Sales would potentially be the biggest delay by GLENCORA since the executive director Gary A suddenly assumed the helm of 2021.
Glencore refused to comment on the potential disposal of property in Kazakhstan.
His departure from Dr. Kongo would be a significant failure in trying to attempt the country of Western investment to reduce reliance on China. Glencore is the only main non-Chinese foreign investor in the country mines except the Eurasian resources based in Kazakhstan.
The Glencore Congola mines produced 225,000 tons of copper and 35,000 tons of Kobalt last year, which made the group the second largest Kobalt manufacturer.
Any potential sale would be further complicated by the fact that Glencore pays a fee on the production of a mine to the Israeli business day Gertler, which is under US sanctions.
Glencore is one of the world’s largest merchants in the world and also has a large mining portfolio. It is the sixth largest copper manufacturer and the top western manufacturer of thermal coal.
Last year, Glencore gave short conversations about merging with the Anglo-Australian group Rio Tinto, and in the previous year he made an enemy offer of $ 23 billion to acquire the Teck Resources of Canada, which was rejected.
The company should report on its annual results on Wednesday.
