Glencore Halts Sale of Stake in Kazakh Mining Firm Kazzinc
Glencore has abandoned its plans to sell its stake in the Kazakh mining company Kazzinc after potential buyers failed to meet its valuation, according to sources familiar with the situation.
Glencore, which holds a 70% stake in Kazzinc, had considered exiting the business amid interest from Chinese buyers. However, the company has now sent termination letters to the bidders, the sources said, requesting anonymity due to the private nature of the matter.
A Glencore spokesperson declined to comment.
Kazzinc operates a vast network of mines, concentrators, and metal finishing plants across Kazakhstan, enabling the company to process ore into finished zinc metal and products.
The company was established in 1997 through the merger of eastern Kazakhstan’s three main non-ferrous metals companies, which were majority government-owned.
Glencore CEO Gary Nagle has continued his predecessor’s strategy of simplifying the business by selling off smaller or more challenging assets. The company has already sold zinc assets in Peru and some of its smaller copper operations.
Zinc prices have rallied this year due to supply constraints, but the long-term outlook remains uncertain due to the metal’s heavy exposure to the struggling construction sector.
Additionally, zinc’s limited use in fast-growing industries like renewable energy and electric vehicles has also affected its prospects.
