Glencore pulls out of Peru deal, eyes Africa.
Glencore International, the world's largest commodities trader, on Wednesday pulled out of a $475 million agreement to acquire the Mina Justa copper project in Peru, but the company is said to be eyeing opportunities in Africa.
Glencore said it terminated the agreement to buy a 70% interest in Marcobre, the sole owner of the Marcona Copper Property and the Mina Justa Project, from Hong Kong-based CST Mining Group after not all the conditions outlined in the agreement had been satisfied.
The transaction was subject to a number of conditions, including the completion of satisfactory due diligence in respect of the assets by Glencore.
Mina Justa Project is the principal exploration and development prospect within the Marcona Copper Property and contains a JORC compliant resource of 413.3 million tonnes with 0.79% copper.
The project was seen a complementing Glencore's existing polymetallic mining operations in Peru.
Glencore's $10 billion initial public offering in May made paper billionaires of its top staff including South African born Ivan Glasenberg, who holds nearly 16% of the company.
The company this week emerged as one of the preferred bidders for the 50.04% stake in Namibia's Rosh Pinah Zinc mine held by Exxaro Resources.
Same of the mine in sourthern Namibia have been announced along with plans to close the Zincor refinery as Exxaro divest from the base metals business.
Exxaro has been looking to exit the base metals business since 2009 so that it can focus on more lucrative commodities such as coal and iron ore.
Rosh Pinah produces about 70,000 tons of zinc a year and 28,000 tons of lead. Exxaro said in August that the successful bidder for its interest in Rosh Pinah would be announced by the end of the year.
According to Business Day, the stake in Rosh Pinah could be worth R471 million.
This article was originally posted on Africa Oil & Mining Network
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