Katanga to acquire Gécamines’ land rights for $250 million

According to Mining News Pro - Katanga, a big Congolese copper and cobalt producer, said last month it would raise around $5.8 billion via a rights issue as part of a debt-for-equity swap with parent Glencore.

Commodities giant Glencore, which owns approximately 86.3% of Katanga, had agreed to swap $5.8 billion in debt for equity, which will raise its stake further in the firm.

The land Katanga will acquire from Gécamines includes multiple blocks over the preferred location for construction of a new long-term tailings facility, and multiple other blocks that will enhance KCC’s ability to more efficiently operate its mines, facilities and other key infrastructure requirements, Katanga said in the media release.

KCC will pay up to $250 million to acquire the land, the total amount payable being dependent on delivery of title to the different land areas.

The companies anticipate the title transfers to be completed in 2020.