Glencore to sell its Bolivian zinc assets for $110 million
(Kitco News) - Glencore today announced that it has reached agreement with Santa Cruz Silver Mining for it to acquire the holding companies which own Glencore’s Bolivian zinc assets, comprising of Sinchi Wayra and Illapa.
Glencore said it will receive an initial amount of USD20 million on the completion date and a further USD90 million to be paid within 4 years or less (depending on certain market standard mandatory and early prepayment provisions) from completion.
At completion, Glencore will enter into a number of net smelter royalty agreements each at 1.5% in respect of the Bolivian mining business with Santa Cruz which provide for continued life of mine payments based on the performance of the relevant mines.
Glencore added it will also retain offtake rights for life of mine in respect of the production from the relevant mines.
Glencore’s Sinchi Wayra owns the Reserva, Tres Amigos and Colquechaquita mines, the Don Diego concentrator and power plants; whereas Sociedad Minera Illapa owns a 45% contractual joint venture right in the Porco and Bolivar mines.
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities. The group's operations comprise around 150 mining and metallurgical sites and oil production assets. Glencore's companies employ around 135,000 people, including contractors.