Glencore sells 85% stake in Falcondo
On 14 August 2015, Glencore confirmed it has sold its stakes in the three assets it got after acquiring Xstrata in May 2013. The sale includes the Falcondo nickel operation in Bonao, Dominicna Republic, the Tampakan copper project in the Philippines and the Sipilou nickel project in the Ivory Coast. The total proceeds raised from the sales are approximately USD$290 million. The sale comes at a time when mining companies are battling to reduce their costs at a time when there is a sharp slide in commodity prices.
It is known that American Nickel Limited (ANL) had acquired 100% of its shares from Glencore Canada Corporation, becoming the Dominican company’s majority stakeholder.
“With the transaction, the property and rights of the other shareholders of Falconbridge are preserved unchanged, including the Dominican Government that will continue to receive over 50% of the profits,” the company said in a statement.
In the Dominican Republic, the Ministry of Energy and Mines alerted that the company identified as American Nickel Limited is still pending filing legal requirements in order to operate the Bonao mine. Meanwhile, El Caribe reported it could not find information online on the American Nickel Limited. In response, the company stated that ANL is a share holding company specialized in mining. It is a subsidiary of Global Special Opportunities Ltd (GSOL). A Google search shows GSOL is registered in The Bahamas.
Falcondo sent a note to El Caribe stating that GSOL has invested in raw materials for many years and has identified an opportunity in the nickel sector.
Source: DR1, Elcaribe
August 18, 2015
Category: DR News |