Sailors SocietyTelestackGeneva DryViganVan AalstPort of South Louisiana
  • Bühler GmbH
  • Telestack
  • Van Aalst
  • Sailors Society
  • Port of South Louisiana
  • TMS Awards 2023

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

Agribusiness expert’s legacy and optimism for GrainCorp’s future

(Posted on 18/03/24)

Farmer, Company Director and long-standing member of the GrainCorp Board of Directors, Dan Mangelsdorf... Read more


Research offers Rotterdam guidelines for raw material transition

(Posted on 15/03/24)

Different product processes, non-fossil raw materials and rare materials are crucial for a CO2-neutral... Read more


Bunge Chevron Ag Renewables to build Louisiana processing plant

(Posted on 10/03/24)

Bunge and Chevron have announced approval of a final investment decision for their joint venture Bunge... Read more


Funding to decarbonise iron ore processing in Labrador West

(Posted on 29/02/24)

The Government of Canada HAS awarded C$18.1 million from its Low Carbon Economy Fund to Rio Tinto&rsquo... Read more


Australia’s biggest renewables deal to repower Gladstone aluminium operations

(Posted on 22/02/24)

Rio Tinto has signed Australia’s largest renewable power purchase agreement (PPA) to date to supply... Read more


BHP half year results released

(Posted on 22/02/24)

Mike Henry, Chief Executive Officer, reviewed the Company's operating and financial performance:&ldquo... Read more


Titan Lithium to set up AED 5 Billion processing plant in KEZAD

(Posted on 14/02/24)

Khalifa Economic Zones Abu Dhabi – KEZAD Group, the largest operator of integrated and purpose... Read more


Australia’s iron ore leaders partner for steel decarbonisation

(Posted on 11/02/24)

Australia’s two largest iron ore producers and its biggest steelmaker have partnered in their... Read more


Lithium market to face transition as demand growth slows

(Posted on 02/02/24)

The lithium market is experiencing a period of transition as demand growth slows and the industry adjusts... Read more


Top US construction economist anticipates weak first half of 2024

(Posted on 31/01/24)

The top economist for the cement, concrete, and construction industries anticipates the U.S. economy... Read more


Bühler GmbHTBA GroupCimbriaTMS Awards 2023Port of Stockton
  • Port of Stockton
  • Geneva Dry
  • Cimbria
  • TBA Group

Subscribe to our newsletter

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