Better a bad arrangement than a good trial. The London Stock Exchange endorsed this maxim by raising the Glencore share on Wednesday, the day after the announcement of the settlement of a dispute with the Congolese company Gécamines about their copper and cobalt mining joint venture. Democratic Republic of Congo (DRC).
On the session, the Glencore share takes 1.36% at 08:27 GMT on the London Stock Exchange, one of the largest increases in the FTSE 100 index (-0.15%).
Investors were watching the issue closely because of its impact on cobalt supplies from the DRC, by far the world’s largest producer of this metal used in mobile phone and car batteries.
Katanga Mining, a subsidiary of Glencore, said Tuesday it has accepted a recapitalization plan of Kamoto Copper, the joint venture with Gécamines which it owns 75%, through a debt conversion of $ 5.6 billion (4.76 billion euros) ) in shares.
Gécamines will receive a payment of $ 150 million and abandon the legal proceedings to dissolve the joint venture.
“I think the price is low,” said Paul Gait, an analyst at Bernstein Investment Research.
“That removes a risk. This shows that a trade discussion can be conducted in a rational way and that a solution can be reached where both parties can move forward, “he added.
