Glencore in talks on streaming deals on Chile, Peru mines -sources

Wed Sep 16, 2015 5:14pm EDT
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By John Tilak

TORONTO, Sept 16 (Reuters) - Glencore is in talks with Franco-Nevada Corp, Silver Wheaton Corp, Royal Gold Inc and two other companies to sell portions of the future production of three South American copper mines, two sources with knowledge of the talks said.

The so-called streaming deals involve Glencore's Antamina and Antapaccay copper mines in Peru, and its Collahausi mine in Chile, they said. The sources asked not to be identified as the matter is confidential.

Some details of the deals were first carried by Global Mining Observer, a London-based online mining publication. (

One source said on Wednesday the talks could expand to include other Glencore mines. He said Glencore was also in discussions with Osisko Gold Royalties, a smaller streaming company.

Streaming transactions are a type of alternative financing in the mining industry, in which a company such as Franco-Nevada or Silver Wheaton provides funds upfront to a miner in exchange for the sale of a fixed amount of future production at a discounted price.

Glencore, a global miner and trading company, said last week that about $2 billion of a $10 billion debt reduction plan it unveiled will come from asset sales, which could include precious metals streaming transactions.

The three South American copper mines produce precious metals such as silver and some gold as by-products.

Franco-Nevada, Silver Wheaton, Royal Gold and Glencore all declined to comment. Osisko did not immediately respond to a request for comment.

Glencore owns 33.75 percent of the Antamina mine with partners BHP Billiton , also with 33.75 percent, Teck Resources with 22.5 percent and Mitsubishi Corp with 10 percent.

Glencore and Anglo American both own 44 percent of the Collahausi mine, with a group of Japanese companies owning the remaining 12 percent. Glencore owns 100 percent of the Antapaccay operation. (With additional reporting by Nicole Mordant in Vancouver and Sarah McFarlane and Freya Berry in London; Editing by Jeffrey Hodgson and Richard Chang)