Glencore strike deals in Mexico and Africa

Glencore strike deals in Mexico and Africa

Glencore (LSE:GLEN) will move into Mexico’s fuel stations business in a US$200 million joint venture, while also announcing a $400 million sale of two African zinc mines to Trevali Mining Corporation (TSE:TV).

The Anglo-Swiss company will reportedly supply 180,000 barrels per day of gasoline and diesel to 1,400 petrol stations across Mexico, around 10% of the nation’s total.

The move into Mexico will be based on a joint venture agreement with G500 Grupo Gasolinero, where the two firms will create a new franchise brand.

Glencore have yet to confirm the deal, which would represent its maiden move into the retail fuel sector.

In a further rebalancing of its assets the firm confirmed the sales of its 80% interest in the Rosh Pinah mine in Namibia, and its 90% interest in the Perkoa mine in Burkina Faso to the Canadian company Trevali.

Glencore will also increase its direct ownership in Trevali from 4% to 25% as part of the deal.

“We are pleased to strengthen our partnership with Trevali as they embark on the development of the premier zinc company in the market,” said Daniel Mate, Glencore’s head of zinc marketing.

@RGNonline