20th Dec 2019 09:04
(Alliance News) - Glencore PLC said Friday its subsidiary Katanga Mining Ltd has entered into agreement with La Generale Des Carrieres Et Des Mines to acquire land rights covering areas adjacent to Kamoto Copper Co's existing mining concessions.
La Generale Des Carrieres Et Des Mines, also known as Gecamines, is a Congolese state-owned commodity trader which holds a 25% stake in the Kamoto Copper joint venture, while Katanga holds the remaining 75%.
Kamoto Copper currently holds the exploitation rights for the Kamoto copper and cobalt mine in Katanga, Democratic Republisc of the Congo.
The land includes multiple blocks over the preferred location for the construction of a new long-term tailings facility, and other blocks that will strengthen Kamoto's ability to operate its mines and facilities more efficiently.
Kamoto will pay up to USD250 million to acquire the land, with the total paid amount depending on delivery of titles to the different land areas.
The agreement also provides for obligations placed on Kamoto. The first is to remove tailings from a sub-section of these areas to another suitable location.
The second obligation is also to make contingent payments to Gecamines if Kamoto either declares a JORC compliant reserve or elects to mine any resources in the acquired land areas. Up to USD120 million of the consideration may be offset against these obligations.
Kamoto will pay the for land using existing liquidity, and expects the transaction to be completed during the course of 2020.
Shares in the Baar, Switzerland-based commodities trader and miner, were up 240.05 pence in London, while its Johannesburg shares were 0.1% higher at ZAR44.35 on Friday.
By Dayo Laniyan; [email protected]
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