TOP NEWS: Glencore To Relinquish Columbian Contracts After Reviews

(Alliance News) - Glencore PLC on Wednesday said its Columbian subsidiary is going to relinquish ...

Alliance News 4 February, 2021 | 3:52PM
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(Alliance News) - Glencore PLC on Wednesday said its Columbian subsidiary is going to relinquish its mining contracts back to the Columbian government after reviews concluded that they were uneconomical.

The Swiss commodities trader said Prodeco, its subsidiary, will commence the process of handing its mining contracts back to the Republic of Colombia through the National Mining Agency.

This follows numerous operational reviews, looking at cost efficiencies, conducted by both the company and the Colombian National Mining Agency. The reviews concluded that it would be "uneconomic to re-commence operations".

The mines will remain on care and maintenance until the formal process of relinquishing the contracts is complete, while the port will continue to operate in line with its obligations as a public service port, the company added.

Prodeco has re-commenced a voluntary redundancy programme and is in talks with its employees, contractors and host communities on the impact of relinquishing the titles.

Glencore shares were down 1.0% at 246.55 pence each in London on Thursday afternoon and closed 0.7% higher at ZAR50.84 in Johannesburg.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Glencore PLC 369.90 GBX -0.54

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