Glencore eyes $1bn gain on Teck copper combo in Chile
Glencore sees $1-billion of value from adopting a joint approach to two giant copper mines in Chile as part of its proposed merger with Teck Resources.
Teck’s Quebrada Blanca, or QB, mine is a key part of the Canadian company’s appeal to Glencore. An expansion at QB is set to ramp up this year toward annual output of as much as 315 000 metric tons. In a March 26 letter posted on its website, Glencore said operating QB jointly with the nearby Collahuasi mine would add at least a $1-billion of value to the metals firm resulting from the merger.
To be sure, Glencore mentioned sharing infrastructure rather than creating a single operation. The latter would require approval from Anglo American, which has 44% of Collahuasi, and perhaps Sumitomo, which has a 30% indirect interest in QB. But if they were to combine, Collahuasi-QB would leapfrog Grasberg in Indonesia to become the world’s No. 2 copper mine — second only to BHP Group’s Escondida in Chile.
A Glencore-Teck tie-up would also have ramifications for BHP in Peru, where the three companies are shareholders in the Antamina copper-zinc mine.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation