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Mutanda mine

The Mutanda mine is an open-pit and operation situated in the of the . Owned and operated by Mutanda Mining , a subsidiary of plc, the mine began commercial production in 2011 following Glencore's acquisition of an initial stake in 2007. It achieved peak output in 2018 with 27,300 tonnes of , positioning it as the world's largest cobalt mine at that time, alongside significant production exceeding 190,000 tonnes annually in high-output years. The site's high-grade ore deposits have made it a of global supply for lithium-ion batteries and for electrical and industrial applications, though operations were suspended from late 2019 to mid-2021 amid low cobalt prices before restarting. maintains majority control, having transferred a required 5% equity to the DRC government in 2023 per national mining regulations.

Geography and Geology

Location and Accessibility

The Mutanda mine is located in the of the , within the mineral-rich Katanga Copperbelt. It is situated approximately 40 kilometers east of , a major mining center in the region. The site's geographic coordinates are approximately 10°47'14"S and 25°48'34"E . Access to the mine is primarily via road from , which benefits from regional infrastructure including Kolwezi Airport for air transport and rail links to , the nearest major city about 250 kilometers to the southeast. The operator, Mutanda Mining SARL, has undertaken road rehabilitation efforts in surrounding rural areas to improve connectivity and support operations. Road conditions remain variable, influenced by seasonal rains and the remote terrain typical of the DRC's southeastern provinces.

Geological Characteristics and Mineralization

The Mutanda copper-cobalt deposit is situated within the Katangan Supergroup of the Central African Copperbelt, specifically in the southern portion of the Lufilian Arc thrust-and-fold belt that extends over 700 km from into the of Congo's Katanga region. The host rocks primarily comprise metasedimentary sequences of the Roan Group, with mineralization concentrated in the upper Dipeta Subgroup (R-3), including the Kansuki Formation (R-3.4), which consists of silicified dolostones, dolomitic shales, and argillites. These carbonate- and carbon-rich lithologies form a stratabound deposit type, characterized by infilling of fissures, fractures, and breccias. Structurally, the deposit is controlled by the east-west trending Kansuki Fault, a major 75+ km long feature that has facilitated overturned and thrust-displaced rocks dipping 5° to 30° south, bounded by north-dipping faults. Deformation includes D1 thrusting and subsequent D2 strike-slip faulting, contributing to the localization of mineralized corridors up to 30 km in length. The ore bodies exhibit stratiform geometry with associated alteration, where shallow caps overlie hypogene zones, extending to depths of 60-100 m in enriched zones. Mineralization at Mutanda is typical of sediment-hosted stratiform copper-cobalt deposits in the DRC , featuring hypogene assemblages of , , carrollite, and minor disseminated or veinlet-hosted within the dolomitic host rocks. enrichment has produced significant oxide mineralization, including and pseudomalachite for , and heterogenite for , with gangue minerals such as and . This enrichment results in elevated grades in the weathered upper portions, while deeper sulfide ores remain largely untapped, presenting potential for future underground development. The deposit comprises multiple ore bodies, including Mutanda East with a 1400 m , up to 150 m thickness, and dips of 0-30° south; Mutanda Central, approximately 500 m , 75-100 m thick, dipping 15-20° ; and Mutanda Central Northwest, around 300 m wide and 200 m deep. These bodies align within a broader mineralized trend, with total resources exceeding 1 Gt at average grades of 1.4-2.6% . Current open-pit operations target the cap, leveraging the enrichment for high-grade extraction.

History

Early Exploration and Development

The Mutanda deposit in the Democratic Republic of the Congo's was initially explored by the state-owned mining company during the . This early work involved excavating shallow pits, conducting geological mapping of the local , and confirming the presence of copper-cobalt mineralization within the Roan Group 4 (R4) interval, specifically the Mwashya Subgroup. These activities established the basic geological framework but did not advance to large-scale due to economic and political challenges in the region during that period. Exploration resumed in the mid-2000s amid renewed interest in the DRC's resources. In 2004, initial programs included core drilling (diamond drilling or ), reverse circulation () drilling, soil sampling, and geophysical surveys, which delineated near-surface oxide mineralization extending to depths of approximately 100 meters across the central and eastern zones of the deposit. By 2005, had begun on the northern flank of Mutanda , exploiting high-grade surface ores but was halted due to risks from steep walls exceeding 70 degrees inclination and depths up to 70 meters. That year, Mutanda Mining contracted to undertake 33 holes totaling 1,780 meters, targeting the Central and East Zones, with four holes intersecting significant mineralization. Additionally, Groupe Bazano conducted 47 holes averaging 80 meters depth over four weeks in , focusing on the Central Zone to expand the . Further delineation occurred in 2006, with soil sampling in June identifying geochemical anomalies that guided additional drilling. RC drilling completed infill coverage of the Central Zone by September on a nominal 50-meter by 50-meter grid, while work shifted to the East Zone. In 2007, DD drilling supplemented RC efforts starting in June, providing higher-quality samples for the up-dip portions of both zones on tighter 25-meter by 25-meter grids, enhancing confidence in the near-surface resource estimates. These pre-commercial activities laid the groundwork for feasibility studies, including an interim study in February 2007 that incorporated environmental assessments approved by the DRC Ministry of Mines.

Glencore's Involvement and Expansion (2000s–2010s)

acquired an initial 30% stake in the Mutanda mine in June 2007 from Groupe Bazano, a Congolese entity linked to local interests, thereby assuming operational control of the project. This entry marked 's strategic push into high-grade copper-cobalt deposits in the of the Congo's Katanga region, leveraging its trading expertise to develop untapped oxide ore resources previously explored but underdeveloped by state-owned . Under Glencore's management through its subsidiary Mutanda Mining SARL (MUMI), initial development focused on and basic processing infrastructure, with commercial production of high-grade and commencing in February 2011. The operation rapidly scaled, producing 24,500 tonnes of and 17,000 tonnes of in its first full year, capitalizing on favorable metal prices and the mine's rich surface mineralization averaging over 6% equivalent. Expansion accelerated in 2012 when secured majority control via deals totaling $480 million, including the purchase of additional stakes from joint venture partners such as High Grade Metals (HGM) and the exercise of options that elevated its ownership to approximately 55%. This consolidation enabled aggressive capital investment, with over $570 million expended by mid-2013 on mine development, haul roads, and a hydrometallurgical upgrade to boost oxide ore throughput. A pivotal step in the came in 2013 with the merger of Mutanda's operations with the adjacent Kansuki mining project, integrating complementary sulfide ore resources and expanding the site's footprint to over 220 square kilometers. committed $641 million in total for this phase, completing expansions by late 2013 that added sulfide flotation circuits and increased annual processing capacity to 3.5 million tonnes of ore, positioning Mutanda as one of the world's largest producers. These enhancements shifted production toward mixed oxide-sulfide feeds, enhancing efficiency amid depleting high-grade surface ores.

Operational Shutdown and Phased Restart (2019–2024)

In August 2019, announced the suspension of operations at the Mutanda mine by the end of the year, citing persistently low prices, elevated costs, and increased fiscal pressures from the of government, including new royalties and taxes. Operations were placed on care and maintenance to reassess the deposit's long-term potential, with the shutdown ultimately occurring in November 2019—a month ahead of schedule—due to disruptions in procuring sulphuric acid essential for processing. By mid-2021, decided to restart the mine amid recovering market conditions, announcing plans for a phased resumption beginning late that year or early , with recruitment for operations already underway. The initial phase commenced in October 2021, focusing on processing ore from existing stockpiles to test systems and gradually rebuild workforce capacity, while targeting a return to full activities by 2024. This limited restart in late 2021 contributed to 's own-sourced output rising 14% to 31,300 tonnes for the full year, with approximately 3,900 tonnes attributable to Mutanda's early contributions despite ongoing ramp-up constraints like power outages. Subsequent phases involved scaling up lines and output, though faced headwinds from feed plan adjustments and variability. In 2023, Mutanda's operations led to a 6% decline in 's overall to 41,300 tonnes, reflecting deliberate optimizations to manage quality. By 2024, full resumption was achieved, but expected lower at Mutanda resulted in a further 10% drop in 's output to 35,100 tonnes, alongside signals of approaching depletion that could necessitate guidance reductions.

Ownership and Corporate Structure

Evolution of Ownership Stakes

Glencore first acquired an initial equity stake in Mutanda Mining S.A.R.L. (MUMI), the entity operating the Mutanda mine, in 2007 through an investment of approximately $200 million, marking its entry into the project as a significant alongside other partners. In March 2011, the state-owned sold its 20% stake in MUMI to Rowny Assets Limited, an entity linked to Israeli businessman , for $137 million, despite independent valuations estimating the stake's worth at over $600 million; this transaction shifted control away from direct state involvement. By May 2012, Glencore increased its holdings through deals totaling $480 million, securing majority control of MUMI and enabling operational expansion. In July 2013, Glencore completed a merger of MUMI with the adjacent Kansuki mining operations, acquiring additional interests and gaining options to purchase up to 50% of partner Rowny Assets' shares in phases, further consolidating its position. On February 13, 2017, purchased the remaining 31% stake in MUMI from subsidiaries of Fleurette Properties Limited (another Gertler-linked entity) for a gross consideration of $922 million, offset by $556 million in loans and $130 million in shareholder debts, resulting in net cash outflow of $534 million and full 100% ownership of MUMI by . In 2023, transferred 5% of its shareholding in MUMI to the of Congo government, as mandated by revisions to the 2002 Mining Code requiring progressive state participation up to 10% in mining projects without dilution of existing shareholders' economic interests; thus retains 95% ownership.

Current Ownership by Glencore

Glencore plc, through its subsidiary Mutanda Mining SARL (MUMI), holds a 95% ownership stake in the Mutanda mine as of 2024, with the remaining 5% owned by the Democratic Republic of Congo (DRC) state, typically represented by the state-owned mining company . This structure resulted from 's compliance with the DRC's 2018 Mining Code revisions, which mandated the transfer of a 5% free to the state upon finalization of certain operational and legal processes; completed this transfer in April 2023. Prior to this adjustment, acquired full indirect ownership of Mutanda in 2017 by purchasing the remaining 31% stake from subsidiaries of Fleurette Properties Limited, a group linked to Israeli businessman , for $534 million, valuing that portion at approximately $922 million including assumed liabilities. This transaction consolidated 's control following its earlier stakes acquired through mergers and investments in the and , establishing MUMI as a wholly-owned entity at that time. The 95% stake positions as the primary operator and beneficiary of Mutanda's production, which focuses on high-grade and ores essential for global s. 's operational oversight includes responsibility for exploration, , processing, and , as outlined in its annual reports and site-specific disclosures. The DRC's 5% holding entitles it to dividends and strategic participation but does not alter 's dominant decision-making authority under the framework. No further ownership changes have been reported as of October 2025, despite ongoing discussions in the DRC sector regarding potential stake adjustments for other assets like Kamoto Copper Company.

Operations and Production

Mining Methods and Facilities

The Mutanda mine utilizes conventional methods to extract oxide copper-cobalt ores from the Katanga sedimentary succession. These methods encompass , blasting for fragmentation, loading, hauling, stockpiling, and to manage water ingress common in the region's conditions. The operation comprises three open pits—East, Central, and Central North-West—which supply raw directly to integrated hydrometallurgical facilities without reliance on underground extraction. Earlier plans outlined consolidation of these pits into a single large open pit by to optimize efficiency, though current configurations maintain multiple active sites for ore feed. Supporting infrastructure includes ancillary services for reclamation, maintenance, and handling, enabling a vertically integrated flow from extraction to on-site and production. The are located approximately 35-36 km east of , with mining activities focused on metasedimentary deposits amenable to surface methods due to their shallow to moderate depths.

Processing and Output Capacity

The Mutanda mine employs a hydrometallurgical processing route suited to its oxide -cobalt ores, involving crushing and grinding of ore from open pits, followed by dense media separation (DMS) to preconcentrate minerals, of the , solvent extraction, and to yield high-purity cathodes, with recovered as hydroxide precipitate via purification and precipitation steps. An associated plant, commissioned in 2012, supports the process with a daily output capacity of 390 metric tons of and 73 metric tons of liquid . The facility's designed output capacity for copper cathodes stands at 200,000 tonnes per annum (tpa), achieved through expansions including a 200 ktpa SAG mill commissioned in late 2013, enabling annualized throughput rates exceeding this level prior to the 2019 shutdown. Cobalt hydroxide production capacity is approximately 24,000 tpa of contained cobalt, though actual outputs have varied with ore grades and operational phases post-2021 restart. These capacities reflect the plant's vertical integration for direct metal and intermediate outputs, without reliance on smelting. The Mutanda commenced commercial of and in February 2011 following Glencore's acquisition of stakes starting in 2007. Output rapidly escalated through the mid-2010s, leveraging high-grade deposits amenable to and hydrometallurgical processing, with rising from 13,700 tonnes in 2013 to a peak of 27,300 tonnes in 2018, accompanied by 199,000 tonnes of in the latter year. This growth positioned Mutanda as the world's largest by 2018, contributing significantly to Glencore's overall output exceeding 40% from the DRC asset. In 2019, production declined sharply to 103,200 tonnes of and 25,100 tonnes of before operations suspended in November amid plummeting cobalt prices, escalating costs including procurement challenges, higher royalties, and depletion concerns, rendering the mine uneconomic. No industrial-scale output occurred in 2020. A phased restart began in October 2021, initially processing stockpiles to produce cathodes, with hydroxide output limited to 3,900 tonnes that year as priorities focused on amid volatile markets. activities remained curtailed until planned resumption in 2024, while processing continued from existing material. By 2022, 's total production surged 40% year-on-year largely due to Mutanda's contribution post-restart, though site-specific figures reflected moderated volumes. output at Mutanda fell to 11,200 tonnes in 2023, attributable to deliberate feed adjustments and declining ore grades from earlier high-grade depletion. Further reductions occurred in 2024, with citing expected lower grades at Mutanda as a key factor in an 8% drop in group production to 38,200 tonnes.
YearCopper Production (tonnes)Cobalt Production (tonnes)Notes
2013Not specified13,700Early ramp-up phase.
2018199,00027,300Production peak.
2019103,20025,100Partial year before shutdown.
202000Full suspension.
2021From stockpiles (specific volume unspecified)3,900Phased restart initiated.
2023Not specified11,200Grade and feed adjustments.
Post-restart trends indicate a shift toward sustained but lower yields due to exhausted high-grade zones, with operations adapting via optimized and for deeper resources, while remains prioritized for economic viability.

Resources and Reserves

Proven and Probable Reserves

As of 31 December 2024, the Mutanda mine's proven and probable ore reserves totaled 276 million tonnes, grading 1.91% and 0.65% , in accordance with the JORC (2012). accounted for 197 million tonnes at 1.94% and 0.61% , while probable reserves comprised 80 million tonnes at 1.83% and 0.74% . These figures yield contained metal of approximately 5.3 million tonnes of and 1.8 million tonnes of across the total reserves. The reserve estimates reflect updates to economic assumptions, including prices and processing recoveries, alongside depletions from and stockpile adjustments during 2024. Primarily ores amenable to hydrometallurgical processing, these reserves support an estimated mine life of about 20 years to 2044, contingent on regulatory approval for sulphide ore treatment to extend operations beyond current depletion. permits remain valid through 2037, with ongoing aimed at converting additional resources to reserves. Separate underground potential, with smaller of 27.8 million tonnes at 3.0% and 0.38% plus probable reserves of 11.2 million tonnes at 2.8% and 0.35% , indicates supplementary higher-grade opportunities but is not yet integral to primary open-pit operations.

Resource Estimates and Exploration Potential

As of 31 December 2024, reports total measured and indicated mineral resources at Mutanda of 276 million tonnes grading 1.91% and 0.65% , encompassing open-cut, , and , with 's attributable interest at 95%. Inferred resources add 26 million tonnes at 2.62% and 0.76% . These figures reflect adjustments from economic assumptions, depletions, and prior , with resources constrained by economic pit shells and potential evaluated to a depth of approximately 500 meters.
CategoryTonnage (Mt)Copper (%)Cobalt (%)
Measured + Indicated (Open Cut)2401.970.67
Measured + Indicated (Underground)8.02.890.99
Measured + Indicated (Stockpiles)28.01.120.43
Total Measured + Indicated2761.910.65
Inferred (Total)262.620.76
Exploration potential at Mutanda centers on transitioning from depleting open-pit ores to deeper sulphide resources via underground mining, with ongoing feasibility studies assessing viability as surface reserves diminish. and exploratory diamond have contributed to resource expansions, supporting a projected mine life extension to around 2044 with sulphide processing approvals, though grades may decline further without successful delineation of higher-grade zones. Mining permits extend to 2037, providing scope for additional to convert inferred resources and evaluate untapped underground extensions in the African Copperbelt metasedimentary sequence.

Economic Contributions

Role in DRC's Mining Sector

The Mutanda mine represents a pivotal asset in the Democratic Republic of the Congo's (DRC) mining sector, which is dominated by copper and cobalt production accounting for over 80% of mineral exports and a significant share of government revenues. As an open-pit operation focused on high-grade oxide ores, Mutanda contributes substantially to the DRC's status as the world's leading cobalt supplier, providing approximately 70% of global output through industrial-scale extraction and processing into cobalt hydroxide and copper cathodes. In peak years, such as around 2019-2020, Mutanda's cobalt output reached 25,000-27,000 metric tons annually, representing up to 25-27% of the DRC's total cobalt mine production at the time. Recent production has fluctuated due to operational restarts post-suspensions (e.g., 2019-2021 for low prices) and declining ore grades, with Mutanda yielding 11,200 metric tons of cobalt in 2023 amid broader DRC output of approximately 170,000 metric tons. Copper production at Mutanda complements this, supporting the DRC's position as Africa's top copper producer and contributing to diversified export revenues, though cobalt remains the mine's hallmark for global battery supply chains. Operated by Glencore's subsidiary Mutanda Mining SARL, the site exemplifies industrialized mining practices in a sector where artisanal and small-scale operations account for 10-20% of cobalt but pose challenges in traceability and sustainability. Mutanda's role extends to enhancing the DRC's attractiveness for foreign in critical minerals, with Glencore's assets—including Mutanda—certified under The Copper Mark in 2025 as the first in to meet updated responsible production standards. This underscores its function in formalizing output amid regulatory pushes for export quotas and value addition, though fiscal disputes and infrastructure gaps persist as sector-wide hurdles.

Employment, Infrastructure, and Local Economic Benefits

The Mutanda mine, operated by Mutanda Mining SARL (MUMI) under Glencore's majority ownership, provides direct to approximately 2,500 workers as of 2024, with a focus on local Congolese nationals comprising the majority of the workforce. Earlier assessments reported over 3,500 employees, of which 95% were Congolese, reflecting efforts to prioritize national hiring amid the mine's operational expansions and transitions from to ore . These jobs encompass roles in , hydrometallurgical , and support functions, contributing to skill development through on-site programs. Combined with Glencore's broader DRC operations including Kamoto Copper Company, exceeded 8,700 personnel by the end of 2022, underscoring the mine's role in regional labor absorption despite periodic operational adjustments such as the 2019-2021 mothballing due to low cobalt prices. MUMI has invested in local infrastructure to support operations and community needs, including the rehabilitation of rural desert roads for improved accessibility and the provision of potable systems to enhance and living standards in surrounding areas. In partnership with Lualaba provincial authorities, the company has constructed medical facilities and , with annual funding allocated to maintain and expand these assets over the past five years, particularly targeting increased enrollment for girls. Vocational training initiatives, formalized through agreements like the "Cahier des Charges," offer skills in boiler making, machine driving, auto mechanics, , and tailoring, aiming to build long-term and reduce dependency on jobs. Local surveillance committees monitor project progress to ensure alignment with development priorities. These efforts yield local economic benefits through enterprise development programs that promote sustainable jobs and , alongside support for local suppliers and procurement to stimulate regional business growth. Agricultural assistance, including seeds, , and inputs for farmers, diversifies income sources beyond , while summer camps and educational investments foster in Kolwezi-adjacent communities. Despite these contributions, broader critiques note uneven distribution of wealth benefits in the DRC, with operations like Mutanda generating taxes and royalties that fund national infrastructure but often facing challenges in trickle-down effects to artisanal miners and informal economies. MUMI's initiatives align with Glencore's social performance goals of building , though outcomes depend on sustained investment amid volatile commodity markets.

Environmental and Social Impacts

Safety Records and Worker Incidents

Mutanda Mining implements the SafeWork framework, which prioritizes hazard identification, , and behavioral safety interventions to minimize workplace incidents and pursue zero harm across operations. This includes mandatory reporting of high-potential risk incidents to prevent recurrence, aligned with 's company-wide standards that emphasize , training, and contractor oversight. A significant supply chain incident occurred on February 20, 2019, when a transporting sulphuric to the Mutanda mine collided with two other vehicles near , resulting in 21 fatalities and multiple injuries from the ensuing spill. The vehicle was operated by a contractor, and Mutanda Mining provided support to local emergency services during the rescue efforts, though the company noted the fell outside its direct operational control. No on-site worker fatalities at Mutanda have been publicly reported in 's disclosures or independent accounts since operations resumed in 2019. Glencore's aggregated safety metrics, encompassing Mutanda among other assets, show progressive improvement, with the 2024 lost time injury frequency rate (LTIFR) reaching the lowest in a decade at a level, reflecting enhanced focus on contractor safety and incident prevention. Site-specific LTIFR data for Mutanda is not disaggregated in public reports, though third-party audits like the Copper Mark assessment for Mutanda reference adherence to these standards without noting deviations in performance.

Environmental Management Practices

Mutanda Mining (MUMI), the operator of the Mutanda mine, aligns its environmental management with Glencore's global (), which emphasizes minimizing impacts through consistent practices such as , , and compliance with applicable laws. The requires site-specific environmental impact assessments, monitoring programs, and corrective actions, with Mutanda submitting annual environmental reports to the Congolese Environmental Agency (ACE) and the Directorate of Mining Environmental Protection (DPEM) to demonstrate regulatory adherence. Tailings management at Mutanda follows the Global Industry Standard on Management (GISTM), with the Mumi 1 Storage (TSF)—inactive since 2015—undergoing regular audits, the most recent in Q1 2025 showing no material findings. Risk assessments, completed in Q2 2023, classify the facility as extreme consequence but confirm no credible failure modes, supported by environmental and social monitoring via a centralized GIS platform covering the TSF's area of influence. from remining operations are redirected to the active Mumi 3 TSF, with emergency preparedness including systems and annual tabletop simulations, last conducted in Q4 2024. Water management adheres to Glencore's water stewardship principles, focusing on , , and efficient use, while Mutanda provides potable water access to nearby communities as part of broader impact mitigation. Waste practices prioritize safe storage and minimization of mineral and non-mineral waste, integrated into the to prevent environmental harm. In April 2025, Mutanda received The Copper Mark , an independent assurance verifying compliance with 30 responsible production principles, including , though self-reported data forms the basis of much disclosure.

Community Engagement and Social Programs

Mutanda Mining, operator of the Mutanda mine, maintains ongoing engagement with host communities in through open communication channels and formalized agreements, including the recent finalization of a "Cahier des Charges" outlining mutual obligations. In collaboration with 's DRC operations, Mutanda Mining (MUMI) signed five-year social project agreements with local communities following extensive consultations, aiming to address socioeconomic needs and foster resilience. These efforts align with broader commitments, such as membership in the Fair Cobalt Alliance, which focuses on mitigating artisanal small-scale risks, combating child labor, and promoting education in -producing areas. In , Mutanda Mining has constructed and annually funded schools in surrounding communities over the past five years, with a particular emphasis on increasing girls' enrollment, while also supporting vocational training programs in skills like boiler making and auto mechanics, and hosting summer camps for local children. Across Glencore's DRC sites, including MUMI, initiatives have included building or rehabilitating 23 schools, donating materials to 16 others, and organizing holiday camps benefiting 16,000 children, alongside improvements in learning outcomes for approximately 57,000 students as reported for related operations in 2019. Health programs involve the of facilities in nearby and contributions to regional , such as DRC's USD 1 million donation of equipment to combat in , alongside building health centers and providing medicines. Economic development initiatives prioritize sustainable job creation and through enterprise facilitation, agricultural support—including provision of seeds, , and inputs to local farmers—and partnerships like the ProAc project launched in July 2024 with BCDC and the DRC government to develop a sustainable agri-food sector for . From 2017 to 2021, DRC supported 370 associations, 33,000 individuals in trades such as , bricklaying, and , with total social contributions exceeding USD 29 million across , , and skills programs. Infrastructure enhancements include improvements to potable water access and rehabilitation of rural roads, complementing broader Glencore DRC investments like the refurbishment of the Lualaba bridge and airport. Overall, reports over USD 100 million invested in social development in the DRC via such "Cahier des Charges" mechanisms, supporting local amid the company's nearly 15,000 local employees.

Controversies and Challenges

Acquisition and Corruption Allegations

first acquired a significant interest in the Mutanda mine through arrangements in the late 2000s, establishing operational control by 2011 via its 50% holding in Samref Congo SPRL, which owned 80% of Mutanda Mining , with the remainder held by state-owned entities. In May 2012, increased its indirect equity interest to majority control through transactions valued at approximately $480 million, including the purchase of stakes from minority shareholders and shareholder debts owed to entities such as Mining Fund. This included acquiring debts of about $140 million from High Grade Metals (HGM) and additional equity adjustments. The final phase of acquisition occurred in February 2017, when purchased the remaining 31% stake in Mutanda from Fleurette Properties Limited, controlled by Israeli businessman , for $922 million, achieving 100% ownership. The deal also involved assuming $130 million in shareholder loans previously owed to Fleurette by Mutanda Mining SARL. The of government approved the transaction, despite Gertler's close ties to former President and ongoing scrutiny of his mining deals. Corruption allegations surrounding the acquisition center on Gertler's role, with U.S. government sanctions imposed on him and his network starting in December 2017 for engaging in "opaque and corrupt" mining deals that deprived the DRC of billions in revenue through inflated sales to companies like Glencore. Reports by NGOs such as Rights and Accountability in Development (RAID) estimate that Gertler-linked transactions, including those involving Mutanda, resulted in at least $3.71 billion in losses to the DRC from suspect mining contracts between 2010 and 2018, often involving sales at undervalue followed by resale at premiums. Global Witness documented Glencore redirecting over $75 million in mining payments to Gertler-associated entities between 2010 and 2016, including during the lead-up to the 2017 Mutanda stake purchase, amid accusations of bribery facilitation. Glencore has faced broader corruption probes tied to its DRC operations, including Mutanda. In December 2022, the company agreed to pay the DRC $180 million to settle claims related to alleged corrupt acts from 2007 to 2018 across its Congolese assets, without admitting liability for specific incidents. In May 2022, Ltd. and International A.G. pleaded guilty in the U.S. to foreign charges, admitting to bribing intermediaries and officials in multiple countries, including the DRC, to advance interests such as securing licenses and favorable tax treatments, though mine-specific details were not publicly delineated. In August 2024, Switzerland's Office of the Attorney General convicted International A.G. of in DRC mine deals following a criminal complaint by the NGO Public Eye, imposing fines and a $150 million compensation claim, again encompassing operations like Mutanda without isolating the acquisition. A October 2025 report by the DRC's CNPAV highlighted $1.36 billion in losses from undervalued Mutanda assets amid corrupt practices, attributing discrepancies to opaque dealings during ownership transitions. has maintained that such settlements resolve historical matters and emphasized compliance enhancements post-2018.

Environmental Spills and Regulatory Disputes

In April 2017, a pipeline burst at Mutanda Mining SARL (MUMI), operated by , released into the Luakusha River, which flows into Kando Lake, a key resource for local and ; the spill killed , amphibians, and caused severe skin irritations requiring medical treatment among nearby residents. MUMI responded by spreading lime to neutralize the acid but provided no documented long-term remediation or compensation for affected communities. Between 2013 and 2014, multiple spills from MUMI operations damaged 23.85 hectares of crops belonging to 26 households in Moloka village, prompting community pressure that led to compensation payments deemed inadequate by locals and delayed environmental regeneration efforts starting two years later. In 2019, a at MUMI's storage facility flooded adjacent cropland; reported compliance with DRC authorities in mitigating the incident, paying compensation, and rehabilitating the land for agricultural reuse. A February 2019 collision involving a transporting to Mutanda spilled its cargo, killing at least 20 people and injuring seven others, with the accident's environmental impact including soil and potential waterway contamination under ongoing review by the Kolwezi Peace Tribunal and DRC . NGO investigations, including those by AFREWATCH and the Centre d'Aide Juridique et Judiciaire (CAJJ) in 2017, have documented persistent from MUMI, with and acids exceeding DRC and WHO standards in the Luakusha River and Kando Lake, leading to health issues such as gastrointestinal disorders, miscarriages, and birth defects in communities; Glencore has countered these claims by asserting monthly water monitoring and adherence to the 2007 Mining Code, though public data on environmental and assessments (ESIAs) remains limited. MUMI's operations overlap with the protected Basse Kando , where mining concessions cover 14% of the area despite safeguards, raising compliance questions under DRC without evidence of specific penalties or shutdowns. Regulatory scrutiny has focused on incident responses rather than broad enforcement, with Swiss NGOs filing complaints in 2018 alleging air and pollution around Mutanda but no resolved disputes or fines reported; Glencore's 2024 sustainability reporting confirms no catastrophic failures at its DRC sites, emphasizing internal compliance programs over external regulatory conflicts.

Government Relations and Fiscal Conflicts

The Democratic Republic of the Congo's adoption of a revised Mining Code on March 23, 2018, imposed higher fiscal obligations on operations like Mutanda by raising royalties on and from 2% to 3.5%, while classifying as a strategic eligible for royalties up to 10%. , which operates Mutanda through its subsidiary Mutanda Mining, publicly opposed the code's provisions on royalties, taxes, and profit repatriation, signaling potential against retroactive application to existing contracts. Glencore's suspension of Mutanda operations in August 2019, citing uneconomic prices amid elevated royalties, deprived the DRC of significant revenues, including taxes and royalties that had previously contributed hundreds of millions annually from the mine. The highlighted tensions, as the state-owned , Glencore's joint-venture partner, faced reduced dividends and fiscal shortfalls during a period of heightened scrutiny over mining contributions. In April 2022, President Félix Tshisekedi directed the inclusion of Mutanda's contracts—originally negotiated under the prior Kabila administration—in a broader review of extractive agreements to rectify perceived imbalances, increase state equity to 10% (including a potential 5% uplift per the 2018 code), and align terms with national interests as several exploration permits approached expiration. The initiative, led by an ad hoc commission under the Ministry of Mines, sought to reassess economic benefits and fiscal flows, though Glencore reported no formal notification at the time and the process remained unresolved. A December 5, 2022, settlement between and the DRC government addressed historical allegations of improper conduct from 2007 to 2018 across Congolese operations, with Glencore paying $180 million to discharge all related claims and committing to enhanced compliance measures, though it did not alter Mutanda's specific fiscal arrangements. This accord aimed to stabilize relations amid ongoing reviews but preceded persistent disputes over calculations and assessments. Fiscal frictions continued into 2024 and 2025, with a September 2024 dispute between 's Congolese units and tax authorities over unpaid royalties totaling €800 million, stemming from disagreements on applicable rates and bases under the revised code. By April 2025, the DRC's tax administration escalated claims to approximately $4.7 billion against Glencore subsidiaries, explicitly including Mutanda, for alleged shortfalls in corporate taxes, royalties, and related levies, reflecting sustained efforts to enforce greater fiscal accountability. These claims remain under contestation, underscoring unresolved tensions in revenue-sharing despite periodic settlements.

Recent Developments and Outlook

Production Updates (2023–2025)

In 2023, Mutanda mine produced 35,100 tonnes of cathode, amid ongoing operations focused on stockpiles and selective . Cobalt output totaled 11,200 tonnes, lower than prior peaks due to deliberate feed plan adjustments to optimize ore depletion and market conditions. During 2024, production declined further owing to depleting ore s at Mutanda, which was the primary factor in 's group-wide own-sourced output falling 8% to 38,200 tonnes from 41,300 tonnes in 2023. Copper production across 's portfolio, including contributions from Mutanda, decreased 4% to 951,600 tonnes, influenced by sequencing and variations at key assets like Mutanda. In response to persistent weak prices, reduced its full-year guidance to 35,000–40,000 tonnes, reflecting curtailed processing at Mutanda to align with market demand. In the first half of 2025, Mutanda saw improved cobalt grades and processing volumes, driving a 19% increase in 's own-sourced cobalt production to 18,900 tonnes compared to H1 2024. Copper output remained challenged group-wide, with narrowing its full-year guidance to 850,000–890,000 tonnes amid lower head grades and recoveries at operations including Mutanda. A DRC ban on non-localized cobalt exports, effective April 30, 2025, halted shipments from Mutanda, leading to onsite storage of produced cobalt pending resolution or alternative processing pathways.

Strategic Reviews and Potential Divestitures

In early 2025, conducted preliminary discussions about potentially selling its Democratic Republic of Congo and operations, explicitly including the Mutanda mine and its 75% stake in the Kamoto Copper Company (KCC). These talks arose amid a broader portfolio review influenced by low prices, operational disruptions, and a $1 billion pre- impairment on DRC assets recorded in 2023 due to market conditions and a dispute . Analysts valued the combined DRC mines at approximately $6.8 billion, though 2023 earnings from these operations totaled $195 million on $2.4 billion in revenue, reflecting reduced profitability. rejected an unsolicited bid from an unnamed Middle Eastern buyer as insufficiently valued, with no formal sale process initiated at that stage. By September 2025, reports shifted focus to potential divestiture of a controlling stake in KCC specifically, amid its underperformance contributing to Glencore's $655 million net loss in the first half of the year, while Mutanda was not singled out in these later negotiations. Glencore's routine portfolio reviews, as outlined in its half-year and reports, assess assets like Mutanda for strategic alignment and impairment risks, with no such charges noted for DRC operations in the 2024 preliminary results. Despite these considerations, Mutanda has sustained strong production, including a 19% year-on-year increase in output to 18,900 tonnes in the first half of 2025, driven by higher grades and volumes, positioning it as a core asset amid export restrictions and demand. No divestiture of Mutanda has materialized as of late 2025, reflecting Glencore's emphasis on optimizing capital allocation in volatile metals markets.

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