Congo Minister Says Glencore Can Buy Gertler’s Copper-Mine Stakeby
Swiss firm considering increase in ownership of Mutanda mine
Minister of mines says Mutanda is ‘100% private business’
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.
“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.
Congo’s government in May announced it would investigate and tax Freeport-McMoRan Inc.’s sale of its 56 percent stake in the Tenke Fungurume Mining project, known as TFM ,to China Molybdenum Co. for $2.65 billion. The government has since lifted its objections, but state-owned copper miner Gecamines, which owns 20 percent of the mine, continues to oppose the deal, insisting that its rights to match the offer have been ignored.
“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.”
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.