Glencore says possible Xstrata merger still pending approvals
London (Platts)--12Feb2013/515 am EST/1015 GMT
Mining and trading powerhouse Glencore said Tuesday that completion of
the merger with Xstrata remains conditional upon receipt of the "outstanding
regulatory approval in China, completion of the Xstrata court process and
Glencore giving effect to the commitments required by the European
"As indicated in the merger timing update dated January 18, 2013, the
long stop date for the merger is now March 15, 2013," Glencore said in its
2012 results statement.
Regarding results, the miner/trader said that industrial growth projects
to December 31 2012 continued to "overall volume improvement."
Total contained copper output in 2012 from its own feed was up 4% on
year at 376,000 mt.
Article continues below...
|Metals Daily now available on Platts Market Center|
Platts Metals Daily is now available for subscribers on Platts Market Center, an interactive website featuring Platts news, market commentaries, proprietary price assessments and archived content, as well as the daily PDF.
PMC will also make available several key US benchmark assessments to subscribers earlier in the US day than with the current PDF-only delivery mode. PMC also includes archived proprietary prices and a custom graphing feature. PMC offers a mobile version viewable on PDAs and smart phones.
For further information on registration, please contact Customer Care: firstname.lastname@example.org
At its Kazzinc operations in Kazakhstan, in which Glencore has a 69.6%
interest, copper production from own sources in 2012 was 49,600 mt, down 3%
from 2011, it said.
"However, copper cathode production increased by 25,800 mt to 47,300 mt,
following the ramp-up at Kazzinc's new copper smelter which was commissioned
in 2011," Glencore said.
Lead production at the operation in 2012 from own sources weighed in at
26,800 mt, a decrease of 25% compared with 2011.
"This reflects the ramp-up at the new lead smelter which was
commissioned in August 2012 and the processing of gold rich concentrates at
the old lead smelter prior to its decommissioning," it said.
Zinc production from own sources was 227,300 mt, a decrease of 8%,
resulting from the expected small reduction in grade during 2012.
Gold production in 2012 from own sources was 474,000 ounces, an increase
of 22% compared with 2011.
"This higher production reflects the continued growth at Altyntau as
well as the benefits from gold recovered from the copper smelter."
At Mutanda in the Democratic Republic of Congo, in which Glencore has a
60% interest, the mine produced 87,000 mt of copper in metal and concentrate
from own sources, a 37% increase compared with 2011.
Production of copper cathodes in 2012 increased 90% to 83,500 mt.
Cobalt production in 2012 was 8,500 mt, an 8% increase from 2011.
In May, Glencore acquired an additional 20% of Mutanda for a cash
consideration of $340 million plus acquired shareholder debts of
approximately $140 million. Glencore also has the right, subject to the terms
of a put and call option agreement exercisable in December 2013, to acquire a
further 20% in Mutanda for a cash consideration of $430 million.
"As previously announced, the transaction was the first step to achieve
the merger of Mutanda and Kansuki, which is expected to form a combined
entity having an installed capacity of 200,000 mt/year of copper by the end
of 2013. It is anticipated that the merger will be completed during H1 2013,"
--Ben Kilbey, email@example.com
--Edited by Jonathan Fox, firstname.lastname@example.org