https://www.engineeringnews.co.za

Congo Minister says Glencore can buy Gertler’s copper mine stake

Congo Minister says Glencore can buy Gertler’s copper mine stake

Photo by Bloomberg

12th January 2017

By: Bloomberg

  

Font size: - +

LONDON – The Democratic Republic of Congo’s Mines Ministry said it wouldn’t oppose a transfer of ownership in the country’s biggest copper and cobalt producer, marking a departure from previous actions to block or tax changes in shareholding structures.

Glencore said last week it’s considering increasing its 69% stake in the Mutanda Mining project, also known as Mumi. The rest is owned by Israeli billionaire Dan Gertler’s Fleurette Group.

“I don’t believe” the state needs to authorize changes in ownership in the Mutunda project, Mines Minister Martin Kabwelulu said late Tuesday in response to questions.

Congo’s government in May announced it would investigate and tax Freeport-McMoRan Inc.’s sale of its 56% stake in the Tenke Fungurume Mining project, known as TFM, to China Molybdenum Co. for $2.65-billion. The government has since lifted its objections, but State-owned copper miner Gecamines, which owns 20% of the mine, continues to oppose the deal, insisting that its rights to match the offer have been ignored.

“Don’t confuse Mumi with TFM, these are different regimes,” Kabwelulu said by text message. “TFM is a convention in which the state is a shareholder, while Mumi is a 100% private business.”

BILLIONS INVESTED

Glencore and Gertler began investing in mines in Congo almost a decade ago and now jointly own 100% of Mutanda, despite a provision in Congo’s mining code that usually awards the government a 5% noncontributing stake. The companies have invested $1.8-billion in the mine, of which $440-million has come from Fleurette, according to its website.

A spokesperson for Fleurette declined to comment on the potential sale.

In 2015, Mutanda produced 216 100 metric tons of copper and 16 500 tons of cobalt, more than any other mine in Congo, Africa’s biggest producer of the metals. TFM was the country’s second-largest producer that year, mining 203 964 tons of copper and 16 014 tons of cobalt.

Edited by Bloomberg

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Monitor Distributors
Monitor Distributors

We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...

VISIT SHOWROOM 
The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.05 0.988s - 140pq - 2rq
Subscribe Now