Glencore held talks about the sale of African copper mines by billions of dollars

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Glencore conducted preliminary discussions on the sale of copper and cobalt mines of millions of dollars in the Democratic Republic of the Congo, while it may be a major shift in the strategy by the largest Western investor in the African country.

Last month, the FTSE 100 group rejected an undesirable offer for mines from a possible buyer in the Middle East because the show was very low, according to the people familiar with the matter.

The company will consider selling part or all its Congolese assets to the right price, according to many people familiar with this issue.

Some people added that the company did not start an official sale, and it could have been completed.

Glencore The Mutanda Copper-Cobalt and 75 percent stake in Kamoto Copper, which is at the Congolese State Gécamines. RBC analysts are estimated at $ 6.8 billion.

The mines were a major part of the Glencore Stadium to Western auto manufacturers to be their favorite supplier of a group of electric vehicle minerals.

The global rush of copper, a red metal used in wires, cables and electric cars, has sparked a wave of integration and activity of acquisitions between major miners.

However, Congolese mines were much less profitable than other copper assets in Glencore – with only $ 195 million of profits in 2023 at 2.4 billion dollars revenues – due to operating setbacks and lower cobalt prices.

Last February, Glencore took weakness before taxes on Congolese copper mines due to the weak conditions in the cobalt market and the settlement of the tax conflict.

“At the end of last year, Glencore received an undesirable approach regarding its operations in the Congo. The approach was rejected. Glencore did not participate any banks or consultants and did not manage the sale of its operations in the Congo,” Glencor said in a statement.

In recent weeks, Glencore has held unofficial discussions separately with potential buyers the future of its origins in Kazakhstan, according to people familiar with the talks.

Glencore abandoned the sale of last year for Kazzzinc, a large company of zinc, pioneer and gold in which it has a 70 percent stake. RBC is estimated at $ 5.1 billion.

Sales are likely to be the largest disposal of Glencore since CEO Gary Nagel took command in 2021.

Glencore refused to comment on the potential disposal of assets in Kazakhstan.

Its departure from Dr. Congo will be a great setback for the country’s attempts to stir Western investment to reduce dependence on China. Glencore is the only non -Chinese foreign investor in the country’s mines alongside the Eurosian Resources group, which is based in Kazakhstan.

Glencore’s conglese produced 225,000 tons of copper and 35,000 tons of cobalt last year, making the group the second largest cobalt producer in the world.

Any potential sale will complicate because Glencore pays royalties on the output of the mines to Israeli businessman Dan Gerter, who is subject to US sanctions.

Glencore is one of the largest goods in the world and has a large mining portfolio. It is the sixth largest copper producer in the world, and the highest western coal producers.

Last year, Glencore held brief merging talks with the Anglo -Australian Group Rio Tinto, and in the previous year she made an anti -23 billion dollar offer to obtain TECK of Canada resources, which were rejected.

The company is scheduled to report its annual results on Wednesday.