Following another breakdown in merger talks with Rio Tinto, Swiss mining major Glencore is turning its attention to asset sales as part of a strategy to strengthen its copper portfolio, Reuters reported.
Discussions aimed at creating a global mining giant valued at around $240 billion collapsed this week due to disagreements over valuation and ownership structure. The failed talks mark the third unsuccessful attempt to merge the two companies, following earlier efforts in 2014 and 2024.
As part of its portfolio reshaping, Glencore is expected to announce the sale of a 70% stake in KazZinc in the coming weeks. Analysts estimate the value of the asset at around $5 billion. KazZinc is a major producer of zinc, lead, and gold in Kazakhstan.
Glencore Chief Executive Gary Nagle has repeatedly spoken in favour of industry consolidation, arguing that combining assets can unlock value and make the mining sector more attractive to investors.
The company has also set a long-term goal of increasing copper production to 1.6 million tonnes by 2035, up from 852,000 tonnes produced in 2025, through a combination of new mine development and the restart of existing operations.
In the near term, investors expect Glencore to prioritise divestments to create a more focused copper mining and metals trading business. Talks are reportedly under way to sell a 40% stake in Glencore’s copper and cobalt operations in the Democratic Republic of Congo to a consortium led by Orion Critical Minerals, with backing from the United States.
Separately, Glencore is exploring potential cooperation with Brazil’s Vale on the joint development of copper deposits in Canada.
Since the collapse of the Rio Tinto talks, Glencore shares have fallen by more than 10%, although they remain up 19% year-to-date. The company is also reviewing its coal portfolio and has not ruled out a partial spin-off of coal assets to raise additional capital.
In Kazakhstan, Glencore continues to invest in gold production. In December 2025, the company allocated nearly $500 million to extend the life of the Vasilkovskoye gold mine in the Akmola Region, operated by Altyntau Kokshetau, the main gold supplier for KazZinc.
Industry expert Nurlan Zhumagulov noted that Altyntau Kokshetau ranked thirteenth among Kazakhstan’s largest taxpayers in 2025, contributing 142 billion tenge, a year-on-year increase of 47%.
It was also reported that Kazakh businessman Shakhmurat Mutalip is in talks to acquire a 70% stake in KazZinc. In January 2026, he registered two new companies at the Astana International Financial Centre: KazZinc Group Ltd and Central Asia Resources Holding Ltd.
