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Glenco had a preliminary discussion on selling millions of dollars of copper and cobalt mines in the Democratic Republic of Congo, what would be a significant change in the largest Western investor strategy in the African country.
The FTSE 100 groups rejected an unreasonable bid for mines from any possible buyer in the Middle East last month because the offer was very low according to people familiar with this topic.
According to a number of people familiar with this topic, the company will consider selling parts or its Congolese assets at the right price.
Some people have added that the company has not started any formal sales process and it was possible that no agreement would be completed.
Glenco The Kamoto Copper Company owns the Mutanda Copper-Cobalt Mines and a 75 percent share, where Congolis has a holding of state-owned mineral gacamines. The RBC analysts pay the mines at $ 6.8BN.
To western car manufacturers as their favorite suppliers for the electric suit of electric vehicles, mines have become the main part of Glenco’s pitch.
A red metal used in cables, cable and electric vehicles, the global rash for tobacco, triggered a wave of attachment and acquisition activities among the main minerals.
However, Congolis mines have been much less profitable than other glandor copper resources – due to operating catastrophe and low cobalt prices, only $ 2.4 billion earnings in 2023 in 2023 in 2023.
Last February Glenco’s Congolis took $ 1 billion pre-tax vulnerabilities because of the cobalt market situation and tax dispute settlement.
Glenco said in a statement: “Late last year Glenco got an irrational method of his activities in DR Congo. The procedure was rejected. Glenco has not appointed any bank or consultant and is not running the sale process for his management in DR Congo. “
According to people familiar with the discussion, in recent weeks, Glenco has a separate informal discussion with potential buyers on the future of his wealth in Kazakhstan.
Glenco left the sale process for Kazzink last year, a large zinc, lead and gold producers where it has 70 percent partner. RBC assumes the value of $ 5.1bn partnership.
Sales will probably be the biggest settled by Glencoor since Chief Executive Gary Nal Nal 2021.
Glenco refuses to comment on the possible disposal of wealth in Kazakhstan.
Its departure from Dr. Congo will be a significant push for the country’s efforts to reduce dependence on China. In addition to the Kazakhstan-based Eurasian Resource Group, Glenco’s only major non-Chinese foreign investor in the country’s mines.
Glencoor’s Congolis mines produced 225,000 tonnes of copper and 35,000 ton of cobalt last year, which turned this team to the world’s second largest cobalt producer.
Any possible sale will become more complicated that Glenco’s US sanctions provide royalty to the mines to the Israeli businessman Dan Gartler.
Glenco is one of the largest product dealers in the world and has a huge mining portfolio. It is the sixth largest copper in the world and the top western producer of thermal coal.
Last year Glenco’s Anglo-Australian group discussed briefly with Rio Tinto, and last year it was a $ 23 billion hostile bid to achieve Canada Tech Resources, which was rejected.
The company will report its annual results on Wednesday.
