Glencore CEO: Plan To Combine Congo Kansuki, Mutanda Assets

LONDON -(Dow Jones)- Swiss commodities giant Glencore International PLC (GLEN.LN) plans to combine the Congolese Kansuki and Mutanda copper and cobalt assets, Chief Executive Ivan Glasenberg said Thursday.

Once the assets are combined, the Baar, Switzerland-based company plans to increase its shareholding in the combined entity to more than 50%, another Glencore executive told analysts in a conference call with shareholders.

Glencore owns an indirect 37.5% stake in Kansuki, a 185-square-kilometer copper and cobalt pre-development project. It borders the Mutanda concession, a mine in which Glencore is operator and owns a 40% stake.

Glencore produced 25,800 metric tons of copper cathode from Mutanda in the first half 2010 and plans to increase capacity there to 110,000 tons by the end of the year.

The executive said that Glencore spent $650 million to develop 110,000 tons of production capacity and will spend another $400 million to double that.

“If you look at what other projects are costing, we are way, way below,” he said.

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