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Monday, May 1, 2023 - 22:29:45
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Mining News Pro - Major miner Glencore has signed a binding agreement with low-carbon aluminium company Norsk Hydro.
The binding agreement concerns Glencore acquiring 30 per cent equity in Alunorte, a subsidiary of Norsk Hydro, as well as 45 per cent in Mineracão Rio do Norte, a Brazilian bauxite producer.
Once the deal is complete, Glencore would become party to the Alunorte joint venture with Hydro and the other minority shareholders, as well as becoming party to the Mineracão Rio do Norte mine (MRN), a joint venture with South32, Rio Tinto and Companhia Brasileira de Aluminio.
Through the deal, most of Glencore’s purchased bauxite from MRN would be supplied to Alunorte. Currently, Alunorte currently purchases approximately 70 per cent of its bauxite requirements from Paragominas, a bauxite mine wholly owned by Hydro.
Glencore is acquiring these non-controlling stakes for a combined equity value of $US775 million ($1.1 billion), and the transaction has an effective date of June 30.
The news comes as resources industry experts speculated Glencore may attempt to take over Teck Resources after it withdrew its proposal to split the company by spinning off its steelmaking coal as Elk Valley Resources, while its main body rebrands to Teck Metals.
Glencore’s head of alumina and aluminium Robin Scheiner said the acquisiton of equity stakes in Alunorte and MRN provides exposure of lower-quartile carbon alumina and bauxite to the company.
“The growing decarbonisation trend is driving demand not only for the mass production of batteries that require the raw materials which Glencore produces, but also for primary aluminium as a strong, lightweight manufacturing metal,” Scheiner said.
“The acquisition of the equity stakes in Alunorte and MRN provide Glencore with exposure to lower-quartile carbon alumina and bauxite, enhancing our capability to supply such critical material for the ongoing energy transition to our customers.”
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https://www.miningnews.ir/En/News/622880
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