Glencore Xstrata Pays $430M Cash, Completing Mutanda Mining Acquisition

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Glencore Xstrata plc has decided to increase its presence in Central Africa. Glencore has “paid $430-million cash to complete the acquisition of the remaining 14.5% indirect equity interest in Mutanda Mining, a copper and cobalt producer,” reports MiningWeekly.com.

“Mutanda, with operations in Katanga in the Democratic Republic of Congo (DRC), is seen as one of Glencore’s key growth assets in Central Africa’s copper belt, where the mining and trading titan already owns indirect interests in copper operations through its majority stake in DRC company Katanga Mining.”

“Global diversified natural resources major Glencore – headed by CEO Ivan Glasenberg – employs 190 000 people on more than 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities.”

“The increased holding was acquired from High Grade Minerals, giving the London-, Hong Kong- and Johannesburg-listed Glencore a 69% indirect equity interest in the Lubumbashi-based Mutanda, the hydrometallurgical complex of which has a capacity to produce 200 000 t of copper cathode and 23 000 t of cobalt a year.”

In metal price news for copper…

On Wednesday, December 18, the cash price of primary copper fell by 0.5 percent on the LME, landing at $7,286 per metric ton and making it the day’s biggest mover. The 3-month price of copper weakened by 0.5 percent on the LME, settling at $7,270 per metric ton.

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After a 0.5 percent increase, the Japanese copper cash price finished the day. Weakening prices followed two days of improvement as the price of US copper producer grade 122 dropped 0.2 percent. The price of US copper producer grade 110 closed following a couple days of improvement, the metal’s price weakened by 0.2 percent. The price of US copper producer grade 102 closed following a couple days of improvement, prices fell by 0.2 percent.

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Chinese copper closed mixed yesterday. Following two days of rising prices, the price of Chinese copper bar dropped 0.5 percent. After improving for two days, the Chinese copper cash price declined 0.5 percent. For the fifth day in a row, the price of Chinese copper wire remained essentially flat. The price of Chinese bright copper scrap held steady.