Increase in indirect equity interest in Mutanda

RNS Number : 9113V

Glencore Xstrata PLC

19 December 2013

 

Baar, Switzerland

Increase in indirect equity interest in Mutanda

19 December, 2013

Glencore Xstrata plc ("Glencore") is pleased to announce that it has completed the acquisition of the remaining 14.5 per cent indirect equity interest in Mutanda Mining Sarl ("Mutanda") held by High Grade Minerals S.A. for a total cash consideration of US$430 million.

Glencore now has a 69 per cent. indirect equity interest in Mutanda. The remaining equity in Mutanda is held 31 per cent. by a subsidiary of Fleurette Properties Limited. The Fleurette Group of companies is not a party to the transaction between Glencore and High Grade Minerals.

For further information, please contact:

Charles Watenphul (Media) t: [phone] m: [phone] [e-mail] Paul Smith (Investors) t:[phone] m: [phone] [e-mail]

About Glencore Xstrata

Glencore Xstrata is one of the world's largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, we are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base.

The Group's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Our diversified operations comprise over 150 mining and metallurgical sites, offshore oilproductionassets, farmsand agricultural facilities. We employ approximately 190,000 people, including contractors.

About Mutanda

Mutanda is a high grade copper and cobalt producer, with its operations located in the province of Katanga in the DRC. As of October 2013, Mutanda copper production was at an annualized production rate of 190 ktpa. Mutanda's hydrometallurgical complex is complete and has production capacity of 200 ktpa of copper cathodes and 23 ktpa of cobalt in hydroxide at design feed. In addition, Mutanda has installed capacity to produce 390 tonnes per day of sulfuric acid and 73 tonnes per day of sulfur dioxide, for use in the hydrometallurgical complex.

As at 31 December 2012, Mutanda had gross assets of US$1,391 million. Mutanda's total profit for the financial year ended 31 December 2012 was US$152 million.

Mutanda completed its merger with Kansuki Sarl ("Kansuki") in July 2013 (the "Merger").  The Merger was implemented by way of the absorption of Kansuki into Mutanda with the consideration for such absorption being the issue of new Mutanda shares.

About Fleurette Group

The Fleurette Group of Companies is a Dutch-resident group of companies whose primary activities are the investment in, exploration, exploitation and development of mining assets in Africa. The parent company of the group is called Fleurette Properties Limited, which is owned by Line Trust Corporation Limited strictly and solely on behalf of the Ashdale Settlement, a trust established in 2006 for the benefit of the family of Dan Gertler. 

 

END

 

 

MSCFFLFMAFDSEDE