Proposed sale of Glencore’s Bolivian zinc assets

Baar, Switzerland
12 October 2021

Glencore today announces that it has reached agreement with Santa Cruz Silver Mining, Ltd (“Santa Cruz”) for it to acquire the holding companies which own Glencore’s Bolivian zinc assets, comprising of Sinchi Wayra and Illapa (each as defined in the Appendix).

Glencore will receive an initial amount of USD20 million (subject to customary working capital adjustments) (the “Initial Consideration Amount”) on the completion date and a further USD90million (the “Deferred Consideration Amount”) to be paid within 4 years or less (depending on certain market standard mandatory and early prepayment provisions) from completion. 

Completion of the sale is conditional on, without limitation, receipt of certain regulatory approvals in Canada and is expected to occur within the next three months.

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 will also retain offtake rights for life of mine in respect of the production from the relevant mines.

BMO Capital Markets is acting as financial advisor to Glencore in connection with the transaction.

For further information please contact:

Investors

Martin Fewings    
t: +41 41 709 28 80    
m: +41 79 737 56 42    
martin.fewings@glencore.com

Media

Charles Watenphul    
t: +41 41 709 24 62    
m: +41 79 904 33 20    
charles.watenphul@glencore.com

Glencore LEI: 2138002658CPO9NBH955

Notes for Editors

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by a global network of more than 30 marketing offices. Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 135,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative. Our ambition is to be a net zero total emissions company by 2050.

Appendix

Glencore’s Bolivian zinc assets comprise:

• Sinchi Wayra S.A. (100% equity ownership), which owns the Reserva, Tres Amigos and Colquechaquita mines, the Don Diego concentrator and power plants, the Sorocaya project and San Lucas (“Sinchi Wayra”); and 
• Sociedad Minera Illapa S.A. (“Illapa”) (100% equity ownership) which owns a 45% contractual joint venture right in the Porco and Bolivar mines (the “Illapa Mines”). Corporacion Minera De Bolivia (“COMIBOL”) will continue to own the Illapa Mines and retain a 55% contractual joint venture right in respect of the same.

Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies.  Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.