US-backed group Congo mines deal with Glencore in ‘final phases’
A US government-backed group has nearly completed the acquisition of stakes in Glencore Plc’s copper-cobalt mines in the Democratic Republic of Congo, according to a senior figure in the consortium.
Orion CMC was set up a year ago as a tool in the push by the US and allies to secure minerals deals around the world, targeting an eventual pool of $5 billion. In February, the venture announced a preliminary deal to purchase 40% of Glencore’s majority interests in a pair of major operations in Congo.
That transaction is in its “final phases,” Oskar Lewnowski, chief executive officer of specialist mining investor Orion Resource Partners, said in an interview on Bloomberg Television with Francine Lacqua. His firm was one of Orion CMC’s three founders alongside the US International Development Finance Corp. and Abu Dhabi’s L’imad Holding.
Saudi Arabia is also involved in Orion CMC, according to Lewnowski, who said he’s talking to “Asian allies” about joining the consortium. The venture aims to reduce dependence on China for a range of mineral products.
“We’re not looking to compete with China,” said Lewnowski. “We’re just looking to create a supply chain that doesn’t allow for monopolistic behavior by any one country.”
The executive said Orion CMC is advancing a deal to make an equity investment in Lifezone Metals Ltd.’s Kabanga nickel project in Tanzania, which was first reported by Bloomberg News in August. He said the group is also pursuing mining deals in Canada, Indonesia and Vietnam.
A transaction to back Chemaf SA, a copper-cobalt miner in Congo that’s been acquired by the US’s Virtus Minerals Inc., “is still possible” but Orion CMC is focused on closing the Glencore deal, according to Lewnowski.
Congo is the world’s second-biggest copper producer and largest source of battery metal cobalt. Chinese firms dominate output of both metals, which are often mined together in the central African country.
Copper traders are fixated on whether President Donald Trump will eventually move ahead with his proposals to place tariffs on imports. The administration is “fairly divided” on that question, said the Orion CEO.
But if tariffs don’t happen, “I think the US government probably takes a hard look at buying significant amount of tonnage that’s already in the United States and storing it.”
(By William Clowes and Francine Lacqua)
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