Glencore Plc, the Swiss multinational commodity trading and mining company led by South African business executive Gary Nagle, is set to take full ownership of the Minera Agua Rica Alumbrera copper project in Argentina through a $475 million deal with its partner, Pan American Silver Corp.
The agreement marks a significant strategic move for Glencore, led by South African business executive Gary Nagle, as it aligns with the company’s intention to bolster its copper assets and contribute to a greener economy.
According to sources familiar with the deal, Canadian mining company Pan American Silver Corp. will sell its 56 percent stake in the project, allowing Glencore to gain complete control over the venture. Glencore had previously acquired an 18.75 percent stake in Minera Agua Rica Alumbrera from Newmont Corp in the previous year.
The acquisition signifies Glencore’s second major copper deal in 2023 and highlights CEO Gary Nagle’s bullish outlook on copper’s future prospects.
Notably, earlier this year, Glencore, under Nagle’s leadership, made an unsolicited bid of $22.5 billion for Teck Resources’ copper and coal assets. Despite Teck’s rejection of the offer twice, Glencore subsequently approached the Vancouver-based miner for its coal business, proposing an $8 billion deal.
Following the announcement of the acquisition, Glencore’s shares surged by 2.57 percent, rising to R108.62 ($6.08) on the Johannesburg Stock Exchange. Consequently, the company’s market capitalization surpassed $86 billion.
At present valuation, Gary Nagle’s 0.016 percent stake in Glencore is worth R248 million ($13.9 million), solidifying his position as one of South Africa’s most affluent business executives.
The completion of the deal is subject to regulatory approvals and other customary closing conditions. Glencore and Pan American Silver Corp. are both looking forward to finalizing the agreement swiftly and smoothly.