May 17, 2020

A great debt: Glencore exploring potential sale of Kazakhstan gold mine

gold mining
BMO capital markets
Dale Benton
1 min
With an increase the in the price of Gold, Vasilkovskoye would be an attractive asset for potential suitors
The Financial Times has revealed that Glencore, the largest commodity trader in the world, could potentially sell one of its biggest gold mines.


The Financial Times has revealed that Glencore, the largest commodity trader in the world, could potentially sell one of its biggest gold mines.

Vasilkovskoye, Kazakhstan, part of Gelncore’s Kazzinc subsidiary, could be sold for up to $2billion to help lower the company’s $18bn debt.

The mine has more than 5m oz of proven and probable gold reserves and with an increase in the price of Gold, up 20 per cent in 2016, there has been a something of a recovery for gold focused operators in the mining industry.

Steven Kalmin, Glencore’s chief financial officer, said the company is always looking for ways to sell its non-core assets– and reach its target of lowering its net debt to $18bn this year.

He said: “We still produce significant gold and silver — non-core for us — in South America, North America, Kazakhstan [and] Australia and we’re looking at further monetisation there.”

Glencore owns 70% of Vasilkovskoye through its subsidiary Kazzinc. With a focus solely on the production of Gold, Vasilkovskoye will attract strong attention from potential buyers, particularly from dedicated gold miners as opposed to financial companies.

Glencore has appointed BMO Capital Markets and Duetsche Bank to explore and support any potential deal that would take place.

Source :Financial Times

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Jul 20, 2021

British Lithium Pressured Due To Calls for Electric Cars

3 min
The ever-increasing need for electric vehicles is mounting pressure on British Lithium as the 2035 deadline inches closer

The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change. 

It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.

British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad. 

Competition For Lithium Rises In Europe 

After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company. 

“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”

Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector. 

Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial. 

Cornish Mining Revival For Lithium Production

“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”

The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction. 

Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably. 

“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.

“Europe from a strategic point of view should be looking at securing its own supply of lithium.”

Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK. 

“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”

Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.

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