The Democratic Republic of Congo’s Mines Ministry said it wouldn’t oppose a transfer of ownership in the country’s biggest copper and cobalt producer, marking a departure from previous actions to block or tax changes in shareholding structures.

Glencore Plc said last week it’s considering increasing its 69 percent stake in the Mutanda Mining project, also known as Mumi. The rest is owned by Israeli billionaire Dan Gertler’s Fleurette Group.

“I don’t believe” the state needs to authorize changes in ownership in the Mutunda project, Mines Minister Martin Kabwelulu said late Tuesday in response to questions.

“Don’t confuse Mumi with TFM, these are different regimes,” Kabwelulu said by text message. “TFM is a convention in which the state is a shareholder, while Mumi is a 100 percent private business.”

Billions Invested

Glencore and Gertler began investing in mines in Congo almost a decade ago and now jointly own 100 percent of Mutanda, despite a provision in Congo’s mining code that usually awards the government a 5 percent non-contributing stake. The companies have invested $1.8 billion in the mine, of which $440 million has come from Fleurette, according to its website.

A spokesman for Fleurette declined to comment on the potential sale.

In 2015, Mutanda produced 216,100 metric tons of copper and 16,500 tons of cobalt, more than any other mine in Congo, Africa’s biggest producer of the metals. TFM was the country’s second-largest producer that year, mining 203,964 tons of copper and 16,014 tons of cobalt.

Peter Grauer, the chairman of Bloomberg LP, is a senior independent non-executive director at Glencore.

Source: Bloomberg

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s