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Glencore PLC up as DRC state miner drops legal proceedings to dissolve copper and cobalt joint venture

Wednesday, June 13, 2018 7:09
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Glencore PLC (LON:GLEN) saw its shares rise on after Democratic Republic of Congo state miner Gécamines said it will drop legal proceedings to dissolve a copper and cobalt joint venture with a subsidiary of the FTSE 100-listed miner.

Glencore said its Katanga Mining Ltd (TSX:KAT) unit had reached a settlement with its partner that includes Gécamines getting a US$150mln payment.

READ: Glencore reportedly facing SFO probe into bribery allegations

The firm added that Katanga had also agreed a recapitalisation plan for 75%-owned Kamoto Copper Co with Gécamines, involving converting US$5.6bn of Kamoto’s debt to equity to fix a capital shortfall.

Gécamines started legal proceedings in April to dissolve Kamoto, blaming Glencore for high debts that have weighed on the Congo mining company for more than 10 years.

The US$150mln payment will be funded by new loans from Glencore, which owns 86% Toronto-listed of Katanga.

In a statement, Glencore said it “is pleased that this matter has now been resolved and looks forward to supporting KCC’s closer partnership with Gécamines as the parties work together to ensure that the Joint Venture reaches its full potential for the benefit of all stakeholders.”

In late afternoon trading in London, Glencore shares were 3.4% higher at 396.45p.

Katanga’s shares were up 6.9% at $1.40 in early trading on the Toronto Stock Exchange.

 

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/198803/glencore-plc-up-as-drc-state-miner-drops-legal-proceedings-to-dissolve-copper-and-cobalt-joint-venture-198803.html

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