Months after being first announced, Glencore has closed its transaction with low-carbon aluminium company Norsk Hydro.
The binding agreement was first announced in late April, and it involved Glencore acquiring 30 per cent equity in Norsk Hydro subsidiary Alunorte, and a 45 per cent in Brazilian bauxite producer Mineracão Rio do Norte.
Glencore’s head of alumina and aluminium Robin Scheiner said at the time the acquisition of equity stakes in Alunorte and Mineracão Rio do Norte will provide exposure of lower-quartile carbon alumina and bauxite to the company.
“The acquisition of the equity stakes in Alunorte and MRN provide Glencore with exposure to lower-quartile carbon alumina and bauxite, enhancing our capability to supply such critical material for the ongoing energy transition to our customers,” he said.
The major miner acquired both non-controlling stakes for a combined equity value of $US775 million ($1.16 billion).
With the deal’s success, Glencore has now become party to the Alunorte joint venture with Norsk Hydro and the other minority shareholders, and the Mineracão Rio do Norte mine, a joint venture with Mineracão Rio do Norte, South32, Rio Tinto, Vale and Companhia Brasileira de Aluminio.
Glencore isn’t the operator of either project but has offtake rights for life of mine in respect of its pro rata share of the production from both Alunorte and Mineracão Rio do Norte.
“We look forward to working with our new joint venture partners and the respective management teams at these world class assets,” Glencore head of alumina and aluminium Robin Scheiner said.
Glencore recently acquired a 77 per cent stake in Teck Resources’ steelmaking coal subsidiary Elk Valley Resources through a $US6.93 billion ($10.4 billion) cash deal.
It also recently signed an agreement with Galan Lithium, where Glencore will acquire technical-grade lithium chloride product from Galan’s HMW project in Argentina.
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