19 May Canadian zinc miner picks up two African Glencore assets
Trevali Mining (TSX:TV) will take over Glencore’s (LSE:GLEN) two African zinc mines after its shareholders approved a planned acquisition deal.
The Canadian miner will purchase about 80% of the of Rosh Pinah mine in Namibia and take a 90% stake in the Perkoa mine in Burkina Faso.
The deal also gives Trevali an effective 39.24% interest in the Gergarub project in Namibia and an option to acquire the Heath Steele Mines in Canada along with related exploration properties and assets.
Trevali said the transaction makes the company one of the top-10 global zinc producers, and will allow the Vancouver-based firm’s total production to double up to about 410 million pounds per year.
Already with operations in Canada and Peru, Trevali contend they are one of the few multi-asset, low-cost global zinc producers.
Although zinc prices have been under pressure this year due to weaker demand from China, it was one of the best performing commodities of 2016, climbing up 60%.