Glencore mulls selling its stake in Kazzinc to Chinese investors
![Kazzinc Kazzinc](/static/img/plug.webp)
Swiss company Glencore Plc is considering selling its 70% stake in mining company Kazzinc to perspective buyers in China, Kazinform News Agency correspondent reports.
According to Bloomberg, Glencore is also in the process of selling the Kazzinc-operated Vasilkovskoye gold mine. The previous deal to sell the asset was canceled more than seven years ago.
“The gold mine and Kazzinc’s core zinc operations could be sold to separate buyers or a single party. Deliberations are preliminary and may not lead to a transaction,” the article writes.
The publication notes that Glencore Plc's 70% stake could be valued at several billion dollars. It further explains that Glencore Chief Executive Officer Gary Nagle is continuing his predecessor's strategy of simplifying the business by selling smaller or more complex assets. The company has already sold its zinc assets in Peru and some of its smaller copper operations.
Kazzinc is a major non-ferrous metallurgical enterprise in Kazakhstan, engaged in the complete process of producing zinc, lead, copper, gold, and silver ingots—from mining the ore to refining the metal.
The enterprise includes five factories. The head office is located in Ust-Kamenogorsk. The company's main shareholder is the Swiss trader Glencore (ranked 21st in the Fortune Global 500 ranking of the world's largest companies). The remaining share (29.8%) belongs to the national company Tau-Ken Samruk.
According to Bloomberg, zinc prices have risen this year due to restrictions on mining, but long-term demand for the metal may decline due to “limited use of zinc in fast-growing industries such as renewable energy and electric vehicles, where demand for other metals such as copper and aluminum are growing rapidly.”
Kazzinc’s zinc production rose 27,500 tons in 2023 to 173,900 tons, while lead production totaled 35,600 tons, copper was 14,800 tons and gold reached 598,000 ounces, says Glencore’s annual report.