Baar, Switzerland, 4-8-2014 — /EuropaWire/ — We refer to Glencore plc’s (“Glencore”) announcement on 22 July 2014 relating to the sale of its entire interest in the Las Bambas copper mine project to a consortium owned 62.5% by MMG Limited, 22.5% by GUOXIN International Investment Corporation Limited and 15.0% by CITIC Metal Co., Ltd. (the
Glencore is pleased to announce the Transaction has completed, effective as of 31 July 2014. The consideration for the Transaction is approximately US$7 billion, which includes reimbursement of capital expenditure and other costs incurred in developing Las Bambas in the period from 1 January 2014 to closing.
The proceeds from the sale will immediately and materially de-gear Glencore’s balance sheet. Glencore will continue to look for opportunities to reinvest capital in line with our published returns criteria. Any surplus capital, subject to maintaining an efficient balance sheet within Glencore’s strong BBB/Baa credit ratings guidance, will be returned to shareholders, within an appropriate time frame and structure.
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Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group’s operations comprise of over 150 mining and metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources, Glencore’s industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.
Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore employs around 200,000 people, including contractors.
About Las Bambas
Las Bambas is a long-life copper development project with prospective exploration options. Located in Cotabambas, Apurimac Region of Peru, the project is at an advanced stage of construction and is scheduled to commence production in 2015.
As at 31 December 2013, Las Bambas had gross assets of US$4,420 million. Given that the project is still in a pre-production phase, Las Bambas’ total profit for the financial year ended 31 December 2013 was US$(0.02) million.
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