Glencore completes Tampakan exit

Source: 
By Claire-Ann Marie C. Feliciano, Senior Reporter - http://www.bworldonline.com/content.php?section=Corporate&title=glencore-completes-tampakan-exit&id=113519
Date of publication: 
15 August, 2015

ANGLO-SWISS miner Glencore plc has completed its exit from the long-delayed Tampakan gold-copper project in Mindanao in a $290-million deal that also covered two other mining assets abroad, it announced on Friday.

Glencore “has completed the sale of the Tampakan copper project,” it said in a statement dated Aug. 14 and posted on its Website.

The buyer was an affiliate of Indophil Resources NL, a miner previously listed in Australia until its takeover this year by the Philippines’ Alsons Group.

Together, Glencore (62.5%) and Indophil (37.5%) used to own the 40% controlling stake in Sagittarius Mines, Inc. (SMI), which in turn runs the $5.9-billion Tampakan project.

Friday’s announcement came two months after Glencore and the Indophil agreed, through a share sale agreement, on the former’s divestment of its stake in the mining venture.

Tampakan Mining Corp. and Southcot Mining Corp. own the remaining 60% interest in SMI.

Besides its interest in the Philippine asset, Glencore said it also sold its interest in the Falcondo nickel operation in the Dominican Republic and the Sipilou nickel project in Brazil.

“The assets were inherited from Xstrata following the completion of the takeover in May 2013,” the company said, adding: “The total proceeds raised from the sales are approximately $290 million.”

Further information on the transaction was not immediately available on Friday.

Glencore’s divestment from Tampakan — touted as potentially the largest foreign divestment in the Philippines to day — was announced last June.

Its exit from the mining project followed the disposal of subsidiary Glencore Queensland Ltd.‘s 13.1% interest in Indophil last January to Alsons Prime Investments Corp. (APIC).

Besides Glencore, other Philippine companies that sold their Indophil interests to APIC are: Philex Mining Corp. (1.30%) and Matutum Consolidated Mining Corp. (0.54%).

The Tampakan project has been on hold since South Cotabato banned open-pit mining in mid-2010, on the eve of the Aquino administration’s assumption of office.

The project site covers an area of around 10,000 hectares straddling Tampakan, South Cotabato; Columbio in Sultan Kudarat; Kiblawan in Davao del Sur; and Malungon in Sarangani. Value of the mine’s production has been estimated at $37 billion over 20 years.

With the open-pit mining ban, SMI had said in 2012 that it would defer start of commercial operations to 2019 from 2016, with construction to “potentially commence in 2015.” The government issued a conditional environmental permit for the project in February 2013.

—————————————————-

Glencore sells stakes in three assets, gets only $290 million

Cecilia Jamasmie – http://www.mining.com/glencore-sells-stakes-in-three-assets-gets-only-29...

14 August 2015

Swiss commodities trader and miner Glencore confirmed Friday it has sold its stakes in three assets it got after acquiring Xstrata in 2013, raising about $290 million.

In a brief statement, the company said it has completed the sale of its 62.5% interest in the Tampakan copper-gold project, in the Philippines, as well as its 85% stake in the Falcondo nickel operation, in the Dominican Republic, and its 94% stake in the Sipilou nickel project, in Côte d’Ivoire.

Like most of its peers, Glencore — which is due to report half-year results next week —has been battling against a sharp slide in commodity prices, which has forced the company to revise down its spending plans for 2015 and book a sizeable writedown on a recent oil African acquisition.

The company’s stock has dropped to record lows this week, becoming the top loser on FTSE 350 mining index on Friday morning, trading at 175.65p at 3:38pmGMT. This means Glencore shares are now down over 50% since the beginning of the year, under pressure from the rout in the commodity prices.