On January 19, Glencore announced that its subsidiary Carlisa Investments Corp., 81.2% owned by Glencore, has entered into an agreement to transfer its 90% interest in the Mopani copper mine to ZCCM Investments Holding PLC (" ZCCM ") for $1.The debt repayment method is as follows:A. Interest: Interest on the debt will be capitalized for the first three years after the Closing (Koala understands it as the formation of a new liability), followed by quarterly interest payments at LIBOR + 3% (converted at an equivalent rate based on SOFR).B. Principal: 3% of Mopani's gross revenue from 2021-2023 and 10-17.5% thereafter;
EBITDA excluding taxes, liquidity changes, capital expenditure, Royalty, interest and 33.3% of gross income after deduction of the foregoing percentage.Upon completion of the sale, Glencore will retain the rights to underwrite the Mopani copper products until the debt from the transaction is repaid in full.As ZCCM holds a 10% interest in Mopani, the transaction complies with the provisions of Section 11.1.10R of the Listing Rules (Related Party Transaction).The market has long been buzzing about the deal.
On September 3 last year, Koala published an article titled "Glencore First Quantum will sell 90% of its Mopani copper mine to the Zambian government, will Chinese capital be included in the buyer list?"The background is introduced in more detail and will not be repeated here.Glencore is selling assets for $1, but it is still a good deal given the debt taken on by the sellers.Glencore has ditched its baggage and will be able to collect principal interest as long as ZCCM continues to operate.ZCCM finally has a large copper asset under its control and does not rule out bringing in a partner to make a difference.While Glencore has pulled out, Vedanta has not been so lucky, and the KCM/ZCCM case has dragged on for more than a year.See Koala's 2019 article, "Chinese bid remains in doubt as Vedanta Resources begins international arbitration over Zambian government's seizure of KCM copper mine"There's nothing going on in Zambia. Invest in Congo.
ABOUT PUDA:
PUDA is a 28-year’s leading, growth-focused manufacturer of packing equipment and custom-engineered and integrated plant-wide system for dry bulk powders, flakes, and granules. PUDA-International Inc. is a Canadian based company located in Great Vancouver, Canada in 2004. Puda owns world famous partners like Southern Copper Corp. Rio Tinto Group, Zijin Group, LG China, OT Group, FL Smith, MCC,KAZ Minerals PLC and E.Mix and ECUACORRIENTE S.A.
Puda is totally committed to achieve customer satisfaction around the world by providing quality service to top clients from conception to installation, through to commissioning and after sales support.
Puda bagging machines range from individual equipment to automated systems that are suitable to mineral, metallurgy, agriculture, chemicals and food.
Bagging Machines
Heater sealer
Check-weigher and-rejecter
Hooking scale, platform scale
Mixers/Blenders
Dry mortar plant
Screeners
Bulk bag discharger
