Katanga Mining Ltd Ord KATFF

Citi's re Glencore's Congo issues

[JanineK22399HH]

"...Citi, a US investment bank, calculates that Katanga together with Glencore’s Mutanda mine in the DRC will contribute 35,500 tonnes or 27% of global supply during 2018. Those figures are set to rise to 59,300 tonnes and 39% next year.

The Swiss company’s mounting troubles in the DRC could make it sell a stake in one or both of its local copper and cobalt mines, with the most likely candidates seen as Russian or Chinese companies, analysts say.

Bringing in a partner could help Glencore mitigate against future risks in the country, where elections will be held later this year. However, the move would also add another player to the market, just as automakers are trying to lock up cobalt supplies and so meet aggressive plans to increase electric car production..."