TBA GroupPort of StocktonTelestackCoaltrans Poland 2020Cleveland Cascades LtdMULTIMODAL 2020
  • Cleveland Cascades Ltd
  • The Wolfson Centre for Bulk Solids Handling Technology
  • TBA Group
  • Port of Vancouver USA
  • Telestack
  • Coaltrans Poland 2020

Katanga Mining announces land agreement

Katanga Mining announces land agreement

(Posted on 23/12/19)

Glencore refers to the announcement by Katanga Mining Limited ("Katanga") in which it announced that Katanga's 75% subsidiary Kamoto Copper Company (“KCC”) has entered into an agreement with La Générale des Carrières et des Mines (“Gécamines”), its 25% joint venture partner in KCC, to acquire from Gécamines a comprehensive land package covering areas adjacent to KCC’s existing mining concessions.

The land includes multiple blocks over the preferred location for construction of a new long-term tailings facility, and multiple other blocks that will enhance KCC’s ability to more efficiently operate its mines, facilities and other key infrastructure requirements. If this agreement is implemented then the risks for KCC’s operations resulting from land constraints, which are described in the Company’s 43-101 Technical Report issued on 7 November 2019, would be mitigated.

KCC will pay up to USD 250 million to acquire the land, the total amount payable being dependent on delivery of title to the various different land areas.

The agreement also provides for (among other matters):

(i)   an initial payment of USD 150 million to Gécamines which will be fully offset against the purchase price consideration or other payment obligations of the Company to Gécamines from time to time,

(ii)   obligations on KCC to remove tailings (estimated at circa 15m dmt), currently in a sub-section of these areas, to another suitable proximate location,

(iii)   warranties and indemnities from Gécamines concerning the land interests to be transferred,

(iv)   contingent obligations to pay “pas de porte” payments to Gécamines if KCC declares a JORC compliant reserve or otherwise elects to mine any resources in certain of the acquired land areas, on substantially the same terms as in the Settlement Agreement announced by KCC in June 2018. An amount of up to USD 120 million of the consideration may be offset against these pas de porte obligations, and

(v)   a new royalty to Gécamines of 2.5% of net sales from the acquired land areas if KCC elects to mine any resources in the acquired land areas.

KCC expects to satisfy the consideration payments from existing liquidity. The agreement anticipates the title transfers to be effected during the course of 2020.

The entering into of this acquisition agreement between Katanga and Gécamines constitutes a smaller related party transaction as defined in UK Listing Rule 11.1.10 because Gécamines holds more than 10% of the voting rights in a material subsidiary of Glencore. Accordingly, Glencore has obtained written confirmation from a sponsor under the UK Listing Rules that the terms of the agreement with Gécamines are fair and reasonable as far as the shareholders of Glencore are concerned.

Latest News

thyssenkrupp to build Cameroon cement plant

(Posted on 31/03/20)

thyssenkrupp is to fit the first cement plant with a system for the production of calcined clayfor the... Read more


Exemption for all agricultural haulers

(Posted on 31/03/20)

In a letter to the Federal Motor Carrier Safety Administration (FMCSA) in the USA, the National Grain... Read more


Rio Tinto slows some operations

(Posted on 26/03/20)

As a result of separate actions by the Premier of Quebec and the President of South Africa to contain... Read more


Cargill donates disinfecting alcohol

(Posted on 26/03/20)

Cargill, one of Europe's largest alcohol producers, has donated a first batch of 60,000 liters of disinfecting... Read more


BHP prioritises safety

(Posted on 20/03/20)

BHP has outlined the steps it is taking to maintain the safety of its workforce and continuity of its... Read more


Vale updates coronavirus

(Posted on 20/03/20)

“Vale would like to update the market on the steps and policies it is taking to safeguard its... Read more


Update on Rio Tinto mine earthquake

(Posted on 20/03/20)

Rio Tinto’s Kennecott mine near Salt Lake City (SLC), Utah, was has been impacted as a result... Read more


Final agreement to implement USMCA

(Posted on 16/03/20)

Canada’s government has approved the U.S.-Mexico-Canada Agreement (USMCA), making it the third... Read more


Calls for recognition of assets in Sustainable Food Systems

(Posted on 16/03/20)

Ahead of the publication of the Farm to Fork Strategy, a gathering of 11 EU organisations of the livestock... Read more


OECD says coronavirus is grave threat

(Posted on 06/03/20)

The coronavirus Covid-19 presents the global economy with its greatest danger since the financial crisis... Read more


Sailors SocietyCimbria Bulk Equipment A/SBühler GmbHCoaltrans MENA 2020The Wolfson Centre for Bulk Solids Handling Technology Vigan
  • Cimbria Bulk Equipment A/S
  • Bühler GmbH

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping