(IN BRIEF) Glencore, a global mining and commodities trading company, has completed the sale of its 100% interest in Cobar Management Pty Ltd (CMPL), the owner of the Cobar copper mine in New South Wales, Australia, to Metals Acquisition Corp (MAC). Glencore received USD775 million in cash and USD100 million in MAC shares as part of the deal. MAC now assumes ownership and operational control of the Cobar copper mine, while Glencore retains a 20.6% share in MAC. Glencore will continue to be the exclusive off-taker for the copper concentrate produced at CMPL. The sale aligns with Glencore’s strategy of simplifying and focusing its portfolio on lower-cost, long-life assets. Glencore remains committed to being a leading producer and exporter of metals that contribute to the global transition to a low-carbon future.
(PRESS RELEASE) BAAR/ SYDNEY, 16-Jun-2023 — /EuropaWire/ — Glencore (LON: GLEN), a Swiss multinational commodity trading and mining company, announces the successful conclusion of the sale and purchase agreement with Metals Acquisition Corp (MAC) (NYSE: MTAL) for Glencore’s 100% interest in Cobar Management Pty Ltd (CMPL), the owner of the Cobar copper mine in New South Wales, Australia.
The transaction has been finalized with Glencore receiving USD775 million in cash and USD100 million in MAC shares. As a result, Glencore now holds 20.6% of the shares in MAC. Additional components of the deal include:
- A deferred payment of USD75 million, to be paid within 12 months.
- A contingent payment of USD150 million, dependent on future copper prices.
- A 1.5% Net Smelter Return royalty over the mine’s lifespan.
Under the terms of the agreement, MAC assumes full ownership and operational control of the Cobar copper mine. Glencore, on the other hand, will continue to be the exclusive off-taker, responsible for purchasing 100% of the copper concentrate produced at CMPL.
The sale of the CSA Mine aligns with Glencore’s strategic objective of simplifying and optimizing its global portfolio, focusing on lower-cost, long-life assets. This transaction allows Glencore to streamline its operations and concentrate on its core strengths.
As a leading producer and exporter of metals, Glencore remains committed to supporting Australia’s pivotal role in the global transition toward a low-carbon future. The company will continue to contribute significantly to the production and supply of essential metals that underpin various sustainable technologies.
Glencore’s successful completion of the sale of the Cobar copper mine represents another important step in the company’s ongoing efforts to optimize its portfolio and pursue its long-term growth strategy.
For further information please contact:
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Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of today.
With around 140,000 employees and contractors and a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 40 offices.
Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement by decarbonising our own operational footprint. We believe that we should take a holistic approach and have considered our commitment through the lens of our global industrial emissions. Against a 2019 baseline, we are committed to reducing our Scope 1, 2 and 3 industrial emissions by 15% by the end of 2026, 50% by the end of 2035 and we have an ambition to achieve net zero industrial emissions by the end of 2050. For more detail see our 2022 Climate Report on the publication page of our website at .
In Australia, Glencore produces coal, copper, cobalt, nickel, zinc, lead and silver from 23 active mining operations. We also operate metals processing assets in Queensland, New South Wales, Western Australia and the Northern Territory, including metals smelters, concentrators and refineries.
We are among Australia’s largest producers and marketers of natural resources, connecting Australian resources with industrial customers around the world. Through our diverse portfolio, we responsibly supply the resources that advance everyday life.
We employ approximately 18,190 people in Australia and in 2022 contributed nearly A$20 billion to the regional, state and national economies. This included spend of A$10.4 billion with 7,370 businesses across the country, as well as $7.5 billion in government tax, royalty and local government payments.
We are committed to providing a safe, inclusive and respectful workplace for our people, to respecting the environment, to engaging openly and constructively with the Traditional Owners on whose lands we operate and to bringing value to local communities.
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.