Glencore aims to sell 40% of its Democratic Republic of Congo (DRC) assets to Orion Critical Mineral Consortium (CMC), a consortium comprising the US International Development Finance Corporation (DFC) and Abu Dhabi-based sovereign investment fund ADQ.
CMC is a new, mission-driven consortium designed to support the US and its allied and partner nations to develop secure, responsible and resilient supply chains for the critical minerals that underpin future economic growth and security.
Glencore’s assets include Mutanda Mining and Kamoto Copper Company. Bloomberg reported last year that Glencore had been holding talks about selling a stake in its biggest African copper mine, Kamoto.
The transaction, announced on Tuesday, gives the mining assets an enterprise value of $9bn.
Gary Nagle, CEO of Glencore, said the company and Orion CMC will look for opportunities to expand and develop Mumi and KCC, working with the DRC government and Gécamines, Glencore’s partner in Kamoto.
“We are pleased that the US government and Orion CMC have recognised Glencore’s role as the only major Western producer of copper and cobalt in the DRC through our high-quality assets, Mumi and KCC. Through this partnership we would be able to support the ambitions of the US government and private sector with the supply of two critical minerals,” he said in a statement.
The transaction comes just a few days before Rio Tinto is expected to indicate whether it is proceding with plans to merge with Glencore in a mega deal that would create the world’s largest copper producer.
The DRC is the world’s second-biggest source of copper and accounts for about 75% of global production of cobalt.
US deputy secretary of state Christopher Landau said that despite the deal, the Donald Trump administration was fully committed to the Washington Accords and ensuring peace, stability and prosperity throughout the entire Great Lakes region.
“This proposed transaction between Glencore and the US-backed Orion Critical Minerals Consortium reflects the core objectives of the US-DRC strategic partnership agreement by encouraging greater US investment in the DRC’s mining sector and promoting secure, reliable and mutually beneficial flows of critical minerals between our two countries,” Landau said.
“We look forward to continued close engagement with the DRC government to advance this transaction in a manner that delivers benefits for both our peoples and sets a positive example for future US investment.”
President Donald Trump on Monday launched a strategic stockpile of critical minerals backed by $10bn in seed funding from the US Export-Import Bank and nearly $1.67bn in private capital.
Oskar Lewnowski, CEO of Orion Resource Partners, said the mooted transaction is exactly what CMC was established to achieve — high-quality production of critical minerals while supporting resilient supply chains for the US and its allies.
“It underscores both the scale of the opportunity and the strategic importance of the consortium’s mission, and this partnership will create a strong platform from which Orion CMC can further develop critical mineral assets and pursue additional investment opportunities. We look forward to working closely with Glencore and US DFC to advance these shared ambitions,” Lewnowski said.
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