Glencore-Canada venture hitched to low-carbon economy shift
JOHANNESBURG (miningweekly.com) – The joint venture partnership Glencore struck with a Canadian pension plan on Tuesday provides exposure to commodities that benefit from a low-carbon economy.
BaseCore Metals, a 50:50 partnership centred on base metals streams and royalties, involves Glencore Canada Corporation contributing a portfolio of selected royalties and Ontario Teachers' Pension Plan contributing cash, with the initial royalty portfolio interest valued at $300-million.
Involved is a selection of existing royalties on producing and development stage properties in North America and South America, including the Antamina and Highland Valley mines, and the Horne 5 and El Pilar projects.
Glencore CEO Ivan Glasenberg described BaseCore as an enabler of further offtakes for Glencore’s marketing business and a means of taking advantage of significant upcoming opportunities.
Ontario Teachers' senior Infrastructure and natural resources MD Andrew Claerhout said the investment reflected an important component of Ontario Teachers' mandate of ensuring commodity benefit from a world that is transitioning towards a low-carbon economy.
BaseCore, which will pursue base metal stream and royalty investment opportunities, will be independently operated, with Glencore and Ontario Teachers' each having the right to nominate directors to the board.
Scotiabank acted as financial adviser and McCarthy Tétrault as legal adviser to Glencore, while Morgan Stanley acted as financial adviser and Stikeman Elliott as legal adviser to Ontario Teachers', Glencore said in a release to Creamer Media’s Mining Weekly Online.
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