Glencore Plc has abandoned plans to sell its stake in the Kazakh mining company Kazzinc after potential buyers failed to meet its valuation, sources familiar with the situation reported. Glencore, holding a 70% stake in Kazzinc, had been contemplating an exit from the business amid interest from Chinese buyers. The company has now issued a termination letter to the bidders, the sources said, requesting anonymity due to the private nature of the discussions. A Glencore spokesperson declined to comment on the matter.
Kazzinc, established in 1997 through the merger of eastern Kazakhstan’s three main non-ferrous metals companies, comprises a sprawling network of mines, concentrators, and metal finishing plants. This setup allows the company to transition from digging ore to producing finished zinc metal and products.
Glencore’s Chief Executive Officer, Gary Nagle, has continued the strategy of his predecessor, focusing on simplifying the business by selling off smaller or more challenging assets. The company has previously sold zinc assets in Peru and some of its smaller copper operations.
While zinc prices have surged this year due to supply constraints, the long-term outlook remains uncertain. The metal’s future is clouded by its heavy reliance on the struggling construction sector and its limited applications in rapidly growing industries like renewable energy and electric vehicles.
