INCREASE OF INDIRECT EQUITY INTEREST IN MUTANDA

RNS Number : 8244D

Glencore International PLC

22 May 2012

 



for immediate release

Baar, Switzerland                                                                                                                22 MAY, 2012

INCREASE OF INDIRECT EQUITY INTEREST IN MUTANDA

Glencore International plc ("Glencore") announces that it has completed the acquisition of a further 24.49 per cent equity interest in Samref Overseas S.A. ("Samref Overseas") from High Grade Minerals S.A. ("HGM") and a further 1 per cent equity interest in Samref Congo Sprl from Groupe Bazano Sprl under two separate share purchase agreements, for an aggregate cash consideration of US$340 million. In addition, Glencore has acquired shareholder debts owed to HGM in the amount of approximately US$140 million. Pursuant to the acquisition, Glencore has increased its total equity interest in Samref Overseas from 50 per cent to a controlling interest of 74.49 per cent and as a result its indirect equity interest in Mutanda Mining Sprl ("Mutanda") to 60 per cent, thereby obtaining majority control over Mutanda and its operations.

Glencore also has the right, subject to the terms of a put and call option agreement, to acquire in the period between 15 December 2013 and 31 December 2013 the remaining 25.51 per cent indirect equity interest held by HGM in Samref Overseas for a total cash consideration of US$430 million.

The acquisition represents a significant first step towards achieving Glencore's previously announced intention to merge the Mutanda and Kansuki mining operations, which would result in a combined entity producing 160 ktpa of copper cathodes and 23 ktpa of cobalt in hydroxide by H1 2013. This expansion of capacity from Mutanda's existing 110 ktpa to 160 ktpa represents the first stage of the expansion of the combined mining operations.

For further information, please contact:

Paul Smith (Investors) t: [phone] m: [phone] [e-mail]	Simon Buerk (Media) t: [phone] m: [phone] [e-mail]	Finsbury (Media) Guy Lamming Dorothy Burwell t: [phone]
Elisa Morniroli (Investors) t: [phone] m: [phone] [e-mail]	Charles Watenphul (Media) t: [phone] m: [phone] [e-mail]	John Burton (Company secretary) t: [phone] m: [phone] [e-mail]

 

About Glencore International plc

Glencore is one of the world's leading integrated producers and marketers of commodities, headquartered in Baar, Switzerland, and listed on the London and Hong Kong Stock Exchanges. Glencore has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of Metals and Minerals, Energy Products and Agricultural Products.

About Mutanda Mining Sprl

Mutanda is a high grade copper and cobalt producer, with its operations located in the province of Katangain the DRC. As of March 2012, Mutanda is producing at an annualised copper production rate of 78 ktpa. Mutanda's installed solvent extraction and electrowinning tankhouse capacity is currently at 110 ktpa and with the optimization of the front end of the plant, Mutanda's hydrometallurgical complex will be capable of producing 110 ktpa of copper cathodes and 23 ktpa of cobalt in hydroxide at design feed grades by the end of Q2 2012 and Q4 2012, respectively.

Mutanda commissioned its 390 tpd sulphuric acid and 73 tpd sulphur dioxide plant in February 2012 and, as at the end of March 2012, the plant was producing sulphuric acid at design capacity. Glencore has a life of mine off-take agreement for all copper and cobalt product produced by Mutanda with pricing based on LME.

 

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