Glencore may sell zinc-lead-silver assets in South America – Fastmarkets

Glencore PLC may sell its entire wholly owned zinc-lead-silver mining portfolio in South America, Fastmarkets reported March 3, citing unnamed sources and documents.

The mining behemoth reportedly tapped BMO Capital Markets to arrange the sale or explore partnerships for the assets, which are across the so-called silver belt in the Andes region and are being bundled into one package deal.

The offer includes the Aguilar zinc-lead-silver mine in Argentina, the Sinchi Wayra and Illapa zinc-lead-silver mines in Bolivia, Glencore's Empresa Minera Los Quenuales SA unit in Peru, and a stake in a Colombian exploration portfolio.

Glencore's 22% interest in Volcan Compañía Minera SAA and its 33.75% stake in the Antamina copper-zinc mine, both in Peru, are not part of the package, the report said.

Fastmarkets said interest from potential buyers to acquire the mines under one deal may be limited, with some flagging political risk in Bolivia. "They are good mines, but the requirement that it has to be a package could be a no-go," one source said.

The sale comes amid rising prices for silver and zinc and a revamp in Glencore's zinc and lead division in 2020. In its full-year 2020 earnings call in February, Glencore hinted at a potential "rationalization" of its noncore assets, the report said.

A Glencore spokesman declined Fastmarkets' request for comment.