Glencore increased its stake in Kazzinc to 69.91%

The largest raw materials trader and shareholder of UC Rusal - Glencore International PLC – has increased its stake in the Kazakh zinc producer “Kazzinc” to 69.61%.

The trader’s stake rose by means of the purchase of 18.91% of shares of the Kazakh metallurgical company from Verny Capital. To finance the deal Glencore issued the shares at the volume of 176,742,520 pieces and will pay a part by cash - $400 mln.

Initially Verny Capital was ready to sell its shares for $116 mln of shares of Glencore and $2.2 bln in cash but the agreement was broken.

The prices for zinc in H1 2012 fell 15%, however, in Q3 they started to show the positive dynamics.

Kazzinc is the largest zinc producer in the CIS with a large stake of accompanying production of copper, precious metals and lead. It also holds the largest gold producer of Kazakhstan– “Altyntau”. In H1 2012 Kazzinc produced 149.5 thousand tons of metal zinc, 0.1% more than in H1 2011.

Gelncore controls the supplies of about 60% in the world zinc market, 50% of copper and 1/3 of the thermal coal. Besides this, the company has the 8.65% stake in the Russian aluminium producer – UC Rusal. Glencore also holds 34% of shares in the mining company Xstrata.

 

 

 

http://www.mineral.ru/News/50444.html

Translated by Galiya Musabekova

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