Glencore Unveils $5.6 Billion Restructuring of Congo’s Katanga Mining

Swiss mining giant Glencore PLC unveiled a sweeping $5.6 billion restructuring of its troubled Congo copper company, Katanga Mining Ltd., resolving a heated dispute with Congo’s state-run mining company about a massive debt load it has built up over the past decade, The Wall Street Journal reported. Glencore said Katanga Mining will issue $5.6 billion in stock, which it will use to retire debt. The company had been saddled with $9.2 billion in high-interest debt, most of which is owed to Glencore. The move is the latest in a long-running saga involving Katanga Mining, one of Glencore’s flagship Congolese copper mines. The operation has been plagued with recurring spills and power outages as it struggled to meet ambitious production targets. Glencore suspended operations at Katanga in 2015 to revamp its infrastructure and boost production. Read more. (Subscription required.)
Location