Glencore sells its stake in Mopani copper

BAAR, Switzerland – Glencore has announced that its subsidiary Carlisa Investments Corp., in which Glencore holds 81.2% of the shares, has signed an agreement with ZCCM Investments Holding plc to transfer its 90% interest in Mopani Copper Mines plc to ZCCM, the owner of the remaining 10% interest in Mopani, for US$1 and the Transaction Debt (as defined below).

Completion of the sale is conditional on receipt of certain regulatory approvals in Zambia and on the approval of the shareholders and board of directors of ZCCM, and is expected to occur within the next three months.

Mopani has been funded by borrowings from Carlisa and other members of the Glencore group. On completion, US$1.5 billion of debt (the Transaction Debt) will remain owed by Mopani to Glencore group creditors. 

After completion of the sale, Glencore will retain offtake rights in respect of Mopani’s copper production until the Transaction Debt has been repaid in full. 

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