Glencore and Canadian pension fund launch new base metals royalty firm

Glencore (LSE:GLEN) and the Ontario Teachers’ Pension Plan will launch a new base metals royalty firm called BaseCore Metals in a 50-50 joint venture ownership deal.

The deal will see the Swiss miner contribute a portfolio of selected royalties, while the pension fund will acquire its interest in BasedCore Metals for cash.

The new independently-operated JV entity will focus on investing in base metals and royalties, with the initial royalty portfolio estimated at roughly US$300 million.

It includes a grouping of existing royalties on producing and development stage properties across North and South America, such as the Antamina and Highland Valley mines as well as the Horne 5 and El Pilar projects.

“The creation of BaseCore Metals is unique in the sector and will enable us to secure further offtakes for our marketing business,” said Glencore’s chief executive Ivan Glasenberg.

Ontario Teachers’ is Canada’s third largest pension fund and owns more than $180 billion in net assets, with investments in natural resources and royalty interests in oil and gas.