Source: Sharecast
The two parties have entered into a non-binding memorandum of understanding in relation to Mutanda Mining (Mumi) and Kamoto Copper Company (KCC).
KCC's operations produce copper and cobalt hydroxide from its two open pit mines and one underground mine, while Mumi's operations produce copper and cobalt from its three open pit mines, providing raw ore feed for Glencore’s copper and cobalt production facilities.
As part of the agreement, Orion CMC will have the right to appoint non-executive directors in respect of the assets and direct the sale of the relevant share of production from the assets to nominated buyers, in accordance with the US-DRC Strategic Partnership Agreement. Mumi and KCC would continue to be managed as part of the Glencore Group.
Orion CMC is led by Orion Resource Partners LP, and includes the US International Development Finance Corporation (DFC).
Glencore chief executive Gary Nagle said: "We are pleased that the US government and Orion CMC have recognised Glencore's role as the only major Western producer of copper and cobalt in the DRC, through our high-quality assets, Mumi and KCC.
"Through this partnership, we would be able to support the ambitions of the US government and private sector with the supply of two critical minerals."
Nagle said the transaction also represents "a significant vote of confidence" in the DRC government's ongoing efforts to attract major foreign investment to the country and further develop its mining industry.
"As the world's largest producer of cobalt and one of the largest copper producers, the DRC plays a vital role in supporting the technology, defence and critical infrastructure roll-out of today and the future," he said.