Glencore and Metals Acquisition have entered into a binding agreement for the sale and purchase of Glencore’s CSA copper mine in New South Wales, Australia.

Glencore will receive US$1.05 billion in cash, US$50 million equity stake in MAC and a 1.5% net smelter return life of mine royalty upon completion of the transaction.

MAC will assume ownership and full operational control of the mine and will enter into an offtake agreement with Glencore for 100% of the copper concentrate produced at CSA Mine.

The sale of CSA Mine is consistent with delivering our strategy of simplifying and aligning our global portfolio of over 150 operating sites to focus on lower-cost, long-life assets.

Glencore will continue to be a leading marketer, producer and exporter of the Australian metals and minerals that will underpin the global transition to a low-carbon future.

MAC is a Special Purpose Acquisition Company (SPAC) listed on the New York Stock Exchange. The transaction is expected to be completed in 2022, subject to the approval of MAC’s shareholders and other customary closing conditions, including regulatory approvals.

Patrice Merrin is a director of Glencore plc and is also Chair of the Board of Directors of MAC. Ms Merrin holds a <1% voting interest in MAC’s shares. MAC is not a related party of Glencore within the meaning of the UK Listing Rules, and Ms Merrin has not participated in the consideration of the sale of CSA Mine by the Glencore Board.