Glencore buys Pan American’s stake in Argentinean copper project – by Cecilia Jamasmie ( – July 31, 2023)

Glencore (LON: GLEN) is buying out a 56% stake in Argentina’s MARA copper project from its partner Pan American Silver (TSX, NYSE: PAAS) for $475 million, as part of the miner and commodity trader’s push to increase exposure to the metal.

Pan American acquired a controlling stake in MARA as part of it recent acquisition of Yamana Gold, which closed in March. The project, located in Argentina’s northwestern Catamarca province, was set in December 2020 by integrating Minera Alumbrera’s plant and mining infrastructure with the Agua Rica copper-gold deposit.

The asset has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold, with an initial mine life of 28 years, Pan American said. As most major miners, Glencore has been trying to boost its foothold in the copper market, where analysts forecast a looming deficit of millions of tonnes by the start of next decade.

The amount varies depending on who you ask. For McKinsey & Co., global electrification is expected to increase annual copper demand to 36.6 million tonnes by 2031, compared to the current demand of roughly 25 million tonnes. The consultancy firm forecasts copper supply to be around 30.1 million tonnes, leaving a gap of 6.5 million tonnes by 2031.

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