(Reuters) – Miner and trader Glencore has been in talks about selling a controlling stake in a unit that operates a major copper and cobalt project in the Democratic Republic of Congo, Bloomberg News reported on Friday.
The news comes a month after Glencore, the world’s second-largest cobalt miner, said a significant portion of its production of the metal was likely to remain unsold by the end of the year due to DRC’s suspension of cobalt exports.
Glencore has informally expressed willingness to sell its stake in Kamoto Copper Co (KCC), with potential bidders including investment firm Orion Resource Partners and miner Rio Tinto, the report said, citing people familiar with the matter.
The U.S. International Development Finance Corp. (DFC) could also be involved in the KCC deal through partnership with New York-based Orion Resource Partners, Bloomberg said.
Glencore and Orion Resources declined to comment. Rio Tinto and the DFC did not immediately respond to a request for a comment.
KCC produces copper cathode and cobalt hydroxide from its two open-pit mines, KOV and Mashamba East, and from the Kamoto underground mine.
Glencore holds a 75% stake in KCC, while Congo’s state-owned mining company Gécamines owns the remaining 25%.
Congo accounts for more than 70% of global cobalt output, but much of it comes from artisanal miners who are largely unregulated.
In February, DRC halted cobalt exports after prices fell to a nine-year low, and the Mines Ministry is reportedly weighing a two-month extension to the ban past its September 21 deadline, Reuters reported on Friday, citing sources.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Tasim Zahid and Leroy Leo)
