KINSHASA, Feb 4 – Glencore has said that it is in discussions to sell a 40 percent stake in its copper and cobalt assets in the Democratic Republic of Congo, with the transaction implying an enterprise value of about $9 billion for the combined operations.
The potential buyer is the Orion Critical Mineral Consortium, a group led by Orion Resource Partners and backed by the U.S. International Development Finance Corporation. The proposed deal would involve Glencore’s interests in Mutanda Mining and Kamoto Copper Company, two of its largest mining operations in the country.
Both parties said they have entered into a non binding memorandum of understanding. Under the proposed terms, Orion CMC would acquire a minority stake while Glencore would retain management control of the assets. Mutanda and Kamoto would continue to operate as part of the Glencore group.
Orion CMC would have the right to appoint non executive directors in respect of the assets and to direct the sale of its share of production to nominated buyers. The companies said this structure aligns with the U.S.-DRC Strategic Partnership Agreement, which focuses on securing supplies of critical minerals for the United States and its partners.
Glencore and Orion CMC also said they plan to work with the government of the Democratic Republic of Congo and with Gécamines, Glencore’s existing partner in Kamoto, to explore opportunities to expand and develop the two operations. The companies added that they may also consider additional critical mineral projects in the DRC and across the African copper belt.
The proposed transaction remains subject to due diligence, the execution of legally binding agreements, and the receipt of applicable regulatory approvals.
The announcement comes as Glencore remains the only major Western producer of copper and cobalt in the Democratic Republic of Congo. Mutanda and Kamoto are among the country’s largest industrial mining operations.
Separately, Glencore said that Rio Tinto is in early stage talks regarding a possible acquisition of Glencore, a transaction that could result in a combined market value of more than $200 billion, based on current market capitalisation data.
