Barrick Gold prepping sale of Zambian copper mine in second half: sources - lithium ion batteries for sale
London/New York, Reuters-
Barrick Gold Corp. , the world's second-largest Gold mining company, is preparing to sell its Zambia copper mine, Lumwana, in the second half of 2019, hoping to target Chinese buyers, with three sources, according to people familiar with the matter.
In two major deals in recent months, Barrick said he plans to cut $1.
5 billion of mines with lower production capacity have little potential for expansion.
It includes Lumwana in possible sales as it is relatively low
Grade copper mines, whose profit margins may be significantly affected by Zambia's new mining regulations and import taxes.
Analysts believe the mine is worth as much as $0. 5 billion.
Sources said Barrick was discussing the appointment of a consultant with the investment bank.
Two sources said a bank linked to a Chinese company could serve as a consultant for Lumwana.
Barrick did not immediately respond to requests for comment.
The group is seeking negotiations with the Chinese government.
State-owned companies, including Chinalco and China Minmetals Corporation, have been seeking growth overseas and based in Africa, attracted by its vast resources
However, the sales process may not be easy because potential acquirers must be satisfied with the risks posed by the tax changes in Zambia, the source said. Second Africa
The largest copper producer is determined to implement the new 5% import tax on copper and plans to replace the value-
VAT
Refundable sales tax as part of a plan to retain a larger share of mineral resource profits for the country and resolve debt.
The new tax also includes royalties on copper production that have increased as commodity prices have risen.
Zambia has overcome opposition from some of the world's largest mining companies, betting that global demand for its resources, particularly copper, is critical to the manufacture of cobalt used in electric cars and lithium
Ion batteries will keep the tax open.
Glencore, weidanta resources and First Quantum also operate in southern African countries.
The sale of Lumwana does not mean that Barrick is completely out of copper assets.
Ceo Mark Bristol told Reuters last week that the company is interested in acquiring assets including copper and gold and pure copper projects if it has a competitive advantage over traditional copper miners.
In the past six months, Barrick has charged $6.
1 billion acquired Randgold Resources, an African mining company, and established a joint venture with rival Newmont Goldcorp to merge its operations in the United StatesS.
Nevada will build the world's largest gold complex.