Glencore International takes control of Congolese Mutanda

Swiss commodity trader Glencore International Plc (LON:GLEN) on Tuesday said it had increased its indirect interest in Congolese Mutanda Mining Sprl to 60% and gained control over the operations of the copper and cobalt producer, which it aims to combine with its Kansuki miner.

Glencore achieved the indirect control of Mutanda by buying additional 24.49% in Samref Overseas SA from High Grade Minerals SA (HGM) and a further 1% in Samref Congo Sprl from Groupe Bazano Sprl in two separate deals worth a combined USD340m (EUR266.3m).

Apart from the equity bought, Glencore has also acquired shareholder debt owed to HGM in the value of around USD140m, the buyer said.

The deal gave the Swiss group a stake of 74.49% in Samref Overseas.

Subject to terms of a put and call option, Glencore can buy the rest of Samref Overseas from HGM between 15 December and 31 December 2013 for a total cash price of USD430m, the buyer said.

The move is in line with Glencore’s announced plan to tie up Mutanda and Kansuki, in a first stage of the expansion of the combined mining operations.

Mutanda is a high-grade copper and cobalt producer operating in the Democratic Republic of the Congo’s province of Katangain. Glencore has a life of mine off-take agreement for all of Mutanda’s copper and cobalt production with pricing based on LME.