Glencore acquires stakes in Fleurette’s copper and cobalt assets in Congo for $960m
Mining firm Glencore has acquired stakes in copper and cobalt resources located in Congo from subsidiaries of Fleurette Group for $960m.
The firm purchased 31% stake in Mutanda Mining, one of the world’s biggest cobalt mine, for $922m and a further 10.3% interest in Katanga Mining, which operates a nearby copper and cobalt mine, for $38m.
With the acquisition, Glencore owns 100% stake in Mutanda and approximately 86.33% interest in Katanga Mining.
Fleurette Group senior adviser Dan Gertler said: “Together with Glencore, Fleurette has enabled the mine to deliver on its full potential and it has become one of the largest taxpayers in the DRC.
“Mutanda and KCC have generated $3bn in tax revenues since our investment - a significant contribution to the DRC economy.
“With the mine now operating at full capacity, we feel now is the right time to exit our investment and to re-invest in further brown and greenfield opportunities.”
Located in the province of Lualaba, the Mutanda Mining is a high grade copper and cobalt producer. It has a capacity to produce 390t per day of sulfuric acid and 73t per day of sulfur dioxide, for use in the hydrometallurgical complex.
As of December 2016, the mine has annualized production capacity of more than 200ktpa of copper cathodes and 24ktpa of cobalt in hydroxide.
In Congo, Katanga operates a major mine complex which produces refined copper and cobalt.
Glencore said the mine complex had the potential to become the largest copper producer in Africa and the world's largest cobalt producer.
Image: The Katanga copper mine is located in Congo. Photo: courtesy of Glencore.