Glencore will increase its share in zinc mining in Peru

Renowned mining company Glencore acquires a 26.73% stake in Peru's largest zinc producer Volcan Compañía Minera SAA. The total amount of this transaction is approximately $ 531 million. As stated in the text of the company's statement on this matter, “this agreement will provide an increase in zinc production and an expansion of its profile for Glencore, while simultaneously providing an opportunity for synergies with the company's existing enterprises in Peru in this area. Volcan operates in the richest polymetal region in Peru, producing high quality zinc concentrates from the raw materials mined. ”

As a result of the deal, Glencore, already one of the world's largest zinc producers, will increase its share of Volcan's total A-class shares from 44.84 percent to 66.30 percent. This will bring its total contribution to 28.07%, against 18.98% previously.

Glencore will finance this transaction with its own funds. Note that this year the company was able to increase its revenues, thus getting rid of the losses of previous years.