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Glencore finalises CSA sale

16th June 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Diversified miner Glencore on Friday announce it had closed the sale of its CSA copper mine, in New South Wales, to NYSE-listed Metals Acquisition Corp (MAC).


Glencore has received $75-million in cash and $100-million in shares, giving the company a 20.6% shareholding in MAC on closing.
 

The transaction also included a $75-million deferred payment, which will be paid within 12 months, and a $150-million contingent payment which is contingent upon future copper sales. Glencore would also receive a 1.5% net smelter return royalty over the life of the mine.

MAC will assume ownership of the CSA copper mine, with an offtake agreement in place allowing Glencore offtake over all of the copper concentrate produced at the mine.

Glencore told shareholders on Friday that the sale of the CSA mine was consistent with the company’s strategy of simplifying and aligning its global portfolio to focus on lower-cost, long-life assets.

The CSA mine employs 540 staff and produces around 50 000 t of copper each year, which is mined and processed on site, and then railed 700 km to the Port of Newcastle for export. In 2021, the mine produced 40 530 t of copper in concentrate.

Edited by Creamer Media Reporter

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