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Glencore talks with Anglo over Chile copper assets in $53B Anglo-Teck deal
Anglo estimates an agreement with Glencore could add $1.4 billion in annual earnings before interest, taxes, depreciation and amortization.
Glencore is in discussions with Anglo American as the two miners work out how to combine neighbouring copper operations in Chile amid Anglo’s $53 billion merger with Teck, a process that could shape how potential value is divided, according to Mining.com.
Anglo and Glencore are discussing integrating parts of the Collahuasi copper mine, where both firms own 44%, with Teck’s nearby Quebrada Blanca complex. Anglo expects to close its Teck merger as soon as next month, subject to Chinese regulatory approval.
Anglo CEO Duncan Wanblad said the industrial case for combining Collahuasi and Quebrada Blanca is “undeniable,” and he estimated a Glencore agreement could add $1.4 billion in annual earnings before interest, taxes, depreciation and amortization. The companies are also studying a planned 15-kilometre conveyor to link Collahuasi’s ore to QB’s processing facilities, projected to add the equivalent of a new mine’s output.
The project is expected to deliver an extra 175,000 tonnes of copper per year between 2030 and 2049, with lower costs and shorter timelines than a standalone development, Mining.com reported. A quoted Anglo investor said Glencore is likely to “play hardball” and that negotiations may be difficult as parties align on valuations and how to distribute synergy value.
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