Tanzania and Kabanga Nickel strike deal on mining joint venture

TANZANIA – The government of Tanzania and UK-based mining firm Kabanga Nickel Limited have signed a framework agreement to jointly develop the Kabanga nickel project formerly owned by Barrick Gold and Glencore. Tanzania’s Foreign minister Palamagamba Kabudi said during a signing ceremony in Bukoba that the government would own a 16% undiluted free-carried interest in the nickel project through a new joint venture company, Tembo Nickel Corporation, 84% owned by Kabanga Nickel. By law, Tanzania’s government gets a 16% stake in all mining projects in the country. Nickel is a…

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Zambia to buy majority stake in Glencore copper mine for US$1.5b

ZAMBIA – State mining investment arm ZCCM-IH has agreed to buy Glencore’s majority stake in Mopani Copper Mines in a US$1.5 billion deal funded by debt and will seek a new investor, the government said in press statement. The copper mine sale follows Glencore’s attempt to suspend operations at Mopani last year because of low copper prices and COVID-19 disruptions, prompting a government threat to revoke the company’s mining licences. Zambia defaulted on a debt payment in November, becoming Africa’s first pandemic-era sovereign default, but will take on more debt…

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Commodities trader Glencore set to sell its stake in Mopani Copper to ZCCM-IH

ZAMBIA – Glencore, a commodities trader, is set to sell its entire stake (73.1%) in Mopani Copper Mines (MCM) to the Zambian Government’s mining investment unit ZCCM-IH. Mopani Copper Mines (MCM) is currently 73.1% owned by Glencore, 16.9% by First Quantum Minerals and the remaining 10% by ZCCM-IH. The latest news comes as the commodities major doesn’t want to just become a minority stakeholder of MCM. On 25 August, Zambian Mines Minister Richard Musukwa had said that the Government and Glencore are at ‘cross purposes’ over MCM and announced that…

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Congo Republic seeks debt deal with Glencore and Trafigura before IMF review

CONGO – Congo Republic aims to reach a deal with energy traders Glencore and Trafigura to restructure a US$1.7 billion debt before a meeting with the International Monetary Fund (IMF) in April 2020. Maixent Raoul Ominga, director general of state-owned SNPC, said lawyers for Congo Republic were working with representatives of Glencore and Trafigura to get all the parties talking. “The government’s objective is to have an agreement with them before the next IMF review in April,” Ominga said. According to Reuters, in January, talks between Congo Republic and the…

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South Africa’s Competition Commission nods Glencore’s Chevron merger

SOUTH AFRICA – The Competition Commission of South Africa has recommended that the Competition Tribunal conditionally approve Glencore’s proposed acquisition of the Chevron SA assets. However, the commission highlighted that the proposed transaction had raised public-interest concerns and hence has recommended its approval subject to a number of conditions, Business Daily reports. As part of the conditions, the commission recommends that there be no retrenchments of Chevron SA workforce as a result of the merger. Additionally, Glencore, a global resources company, should also ensure that Chevron SA’s head office remains…

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