US deal on Glencore mines paves way for new mining house

A US government-backed consortium’s plan to buy 40% of Glencore’s copper-cobalt operations in Democratic Republic of Congo could create a vehicle for further mining acquisitions across Africa, said Bloomberg News.Orion CMC, a venture led by Orion Resource Partners with financing from the US International Development Finance Corp and Abu Dhabi’s ADQ, said it had signed a memorandum of understanding with Glencore in a potential deal that values Mutanda Mining and Kamoto Copper Co assets at $9bn. However, Orion CMC is expected to pay around $2bn for its minority stake, said the newswire.The transaction will establish a new company 60% owned by Glencore and 40% by Orion CMC, which could pursue additional opportunities in the Central African Copperbelt spanning Congo and Zambia, said Bloomberg citing people familiar with the matter. The entity may eventually seek outside investors and a public listing, they added.The agreement marks a significant shift in US strategy to secure critical minerals supplies and counter Chinese dominance in African mining. Congo produces most of the world’s cobalt, essential for electric vehicle batteries and defence applications.US Deputy Secretary of State Christopher Landau said the deal “reflects the core objectives of the US-DRC Strategic Partnership Agreement by encouraging greater US investment in the DRC’s mining sector.”The transaction represents a turnaround for Glencore in its relationship with the US government. In 2022, the miner settled corruption charges involving bribery payments to Congolese officials. Complications remain around Israeli billionaire Dan Gertler, who is under US sanctions and receives royalties from both mines, said Bloomberg News.The post US deal on Glencore mines paves way for new mining house appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com