TIDMGLEN
RNS Number : 6090X
Glencore PLC
27 April 2023
Glencore plc
Baar, Switzerland
27 April 2023
Glencore announces the acquisition of equity stakes in Mineracão
Rio do Norte S.A. and Alunorte S.A. from Norsk Hydro ASA
Glencore is pleased to announce that it has reached a binding
agreement with Norsk Hydro ASA ("Hydro"), one of the world's
leading low-carbon aluminium companies, to acquire a 30% equity
stake in Alunorte S.A. ("Alunorte") and a 45% equity stake in
Mineracão Rio do Norte S.A. ("MRN") (the "Transaction").
Glencore is acquiring these non-controlling stakes for a
combined equity value of c. USD 775 million, basis an agreed
proportionate look through Enterprise Value and a net debt of USD
335 million in the business as at 31 March 2023. The transaction
has an effective date of 30 June 2023 and includes certain
post-closing adjustments, based on the performance of Alunorte over
a 21-month period from 30 June 2023. The total payment on
completion, including earn-in and other adjustments, is currently
expected to be c. USD 700 million. Completion is expected to occur
in H2 2023.
Completion of the Transaction is conditional on, among others,
customary regulatory approvals and the two transactions with Hydro
are inter-conditional.
On completion of the Transaction:
-- Glencore will become party to the Alunorte joint venture with
Hydro and the other minority shareholders
-- Glencore will become party to the MRN joint venture with the
other existing shareholders, being South32, Rio Tinto and Companhia
Brasileira de Aluminio
-- Glencore will not be the operator of either asset
-- Glencore will have offtake rights for life of mine in respect
of its pro rata share of the production from both Alunorte and MRN.
Most of the bauxite purchased by Glencore from MRN will be supplied
to Alunorte. In addition to the supply of MRN bauxite by Glencore,
Alunorte currently purchases approximately 70% of its bauxite
requirements from Paragominas, a bauxite mine wholly owned by
Hydro
Robin Scheiner, Head of Alumina and Aluminium, Glencore,
commented:
"The growing decarbonisation trend is driving demand not only
for the mass production of batteries that require the raw materials
which Glencore produces, but also for primary aluminium as a
strong, lightweight manufacturing metal.
"The acquisition of the equity stakes in Alunorte and MRN
provide Glencore with exposure to lower-quartile carbon alumina and
bauxite, enhancing our capability to supply such critical material
for the ongoing energy transition to our customers. Both Alunorte
and MRN produce high quality products, which should support
particularly our marketing activities across the Atlantic
basin.
"We look forward to working with our joint venture partners to
further strengthen Alunorte's position as a producer of low-carbon
alumina."
Further information on Alunorte and MRN:
Alunorte:
-- Alunorte is the world's largest alumina refinery outside
China, located in the city of Bacarena, state of Para in
Brazil.
-- It began operations in 1995 and has c. 2,200 permanent employees.
-- It has a nameplate capacity and currently operating at c.
6.3m MT/year, and is looking to expand in the future.
-- It is ASI certified and the only refinery in the world to
have obtained the ISO55001/2014 asset management certification, in
addition to other ISO and SA certifications.
-- As well as being amongst the lowest cost refineries in the
world, Alunorte is 1(st) quartile with respect to carbon emissions
with a clear plan to be 1(st) decile by 2025, driven by a change in
fuel consumption and the roll-out of electrical boilers.
MRN:
-- MRN is an open cast, high quality, low-cost bauxite mine located in Trombetas, Brazil.
-- Alunorte is one of the biggest consumers of MRN bauxite.
-- MRN has annual production capacity of c. 12.5 million metric
tons of bauxite and nearly 1,300 permanent employees.
-- It is a leader in Brazil in sustainable mining and one of the
largest socio-economic contributors in the region.
-- It began extracting bauxite in 1979.
-- It has an independent management team which reports into the
board (which is itself comprised of shareholder
representatives).
For further information please contact:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 60 commodities that advance everyday life. Through a
network of assets, customers and suppliers that spans the globe, we
produce, process, recycle, source, market and distribute the
commodities that support decarbonisation while meeting the energy
needs of today.
With around 140,000 employees and contractors and a strong
footprint in over 35 countries in both established and emerging
regions for natural resources, our marketing and industrial
activities are supported by a global network of more than 40
offices.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, battery manufacturing and
oil sectors. We also provide financing, logistics and other
services to producers and consumers of commodities.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
We recognise our responsibility to contribute to the global
effort to achieve the goals of the Paris Agreement by decarbonising
our own operational footprint. We believe that we should take a
holistic approach and have considered our commitment through the
lens of our global industrial emissions. Against a 2019 baseline,
we are committed to reducing our Scope 1, 2 and 3 industrial
emissions by 15% by the end of 2026, 50% by the end of 2035 and we
have an ambition to achieve net zero industrial emissions by the
end of 2050. For more detail see our 2022 Climate Report on the
publication page of our website at glencore.com/publications .
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Disclaimer
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