Shares of Glencore PLC edged higher in early London trading following reports that a consortium supported by the United States is negotiating to purchase a significant minority stake in the mining giant's copper and cobalt operations in the Democratic Republic of Congo.
Deal Talks in Focus
The Orion Critical Mineral Consortium, which includes Orion Resource Partners and the U.S. International Development Finance Corporation, is in discussions to acquire a 40% interest in Glencore's Mutanda Mining and Kamoto Copper Company assets. The non-binding memorandum of understanding implies an enterprise value of approximately $9 billion for the combined interests.
Glencore Chief Executive Gary Nagle described the potential investment as "a significant vote of confidence" in the company's Congolese operations. Orion CEO Oskar Lewnowski noted the transaction would help secure "long-life, high-quality" production. Any final agreement remains subject to due diligence, binding documentation, and regulatory approvals.
Market Context and Sensitivity
The stock's movement reflects investor attention on critical minerals supply chains, particularly as Washington intensifies efforts to secure strategic resources. Glencore shares are sensitive to both base metal prices and developments in key mining jurisdictions like Congo.
Copper prices showed strength recently, with LME cash copper settling at $13,327 per tonne on February 11, up from $13,002 the previous day according to Westmetall data. However, deals in Congo face potential hurdles including political uncertainty, permitting issues, and partner negotiations.
Upcoming Catalyst
Investors are positioning ahead of Glencore's 2025 full-year results scheduled for Wednesday, February 18. The earnings release and accompanying webcast are expected to provide updates on the Congo negotiations alongside details on cash returns and operational guidance.
The company's unique structure—combining mining with a substantial marketing business—makes its stock behave differently from pure-play mining equities, adding another layer of complexity for investors evaluating this potential transaction.
