Glencore and Metals Acquisition LLC have amended their original agreement to finalize the sale of the CSA copper mine in Cobar, New South Wales, Australia. In June 2019, Glencore announced its sale of a majority stake in the CSA copper mine, based in Cobar, New South Wales, Australia, to Metals Acquisition LLC—a company formed by HCFa, a subsidiary of private equity company HCF International Advisors, and Athena Group Investment Holding Limited.
At the heart of the transaction was the purchase by Metals Acquisition of a 72.68 percent stake in the mine from Glencore, in exchange for $1.925 billion (USD). The companies also agreed to a suite of transactions that would allow Glencore to retain participation in the mine’s future production. Under the revised deal, Glencore will transfer 18.2 percent of its 72.68 percent stake to a special purpose vehicle (SPV) owned by Metals Acquisition and create a limited partnership between the SPV and Glencore. The partnership will then sell up to 13.5 percent interest in the mine to a third entity when the mine reaches full production.
Additionally, the companies agreed to further details of the transaction, including Glencore’s participation in the production of the mine and the related agreements to that effect. The revised agreement also sets out the terms and conditions of the purchase, including the limitation of Glencore’s voting rights and board representation in respect of the operation of the mine.
The amended deal comes a few months after the original agreement, which was announced in June. Glencore, HCFa, and Athena first announced the deal in April, when they revealed the plans for the sale of the copper mine. The CSA copper mine, located in Cobar, New South Wales, is one of the world’s largest copper mines. It has been in operation since the late nineteenth century, and is the largest copper mine in Australia. The CSA mine produces 1.5 million tonnes of copper ore annually, making it one of the highest-generating copper mines in the world.
The mine has established itself as a major player in the copper market. It is one of the most productive copper mines in the world and has produced some of the highest quality copper ore in the world. It is estimated that the mine produced more than $1 billion worth of copper ore in 2018. Glencore, HCFa, and Athena all stand to gain from the purchase of the CSA copper mine. The companies now have access to a major source of copper ore, providing them with essential resources for their operations. In addition, Glencore will benefit from the sale of its 72.68 percent stake, as well as the additional income generated from its participation in the production of the copper mine.
The revised agreement will allow Glencore, HCFa, and Athena to move forward with their plans to increase production and maximize the CSA copper mine’s potential. The now finalized sale of the mine also ensures that the CSA copper mine will remain a major contributor to the copper market and will provide these companies with a critical resource to power their operations.
