Glencore decides to save its gold mine in Kazakhstan

Nadezhda Ivanova's picture

The fall in prices in the mining industry over the past few years has forced many metal miners to reduce investments and sell their assets. However, the resumption of the price growth last year gave impetus to new major transactions in the industry, the Bloomberg reports.

According to Wells Fargo, mining companies reduced the capital expenditures from $123.6 billion in 2012 to $42.5 billion in 2016. According to the Bloomberg, the volume of the transactions in the mining industry is still well below the peak level of early 2012, however the volume of the transactions, announced in the first two months of 2017, increased by 41% compared to the previous year and amounted to $7.6 billion. Premiums for deals announced in February amounted to an average of 33%, which is the highest rate since August.

Investors again began to invest in funds associated with the mining industry. Over the past three months, the volume of such investments made up $4.9 billion, outstripping investments in funds associated with technology firms, reports the Bloomberg. The investments increased against the background of the improving demand outlook, which was caused by economic stabilization in China and the infrastructure financing in the amount of $1 trillion, promised by the US President Donald Trump.

Against this background, according to the Bloomberg’s sources, the Swiss trading company Glencore, one of the largest suppliers of raw materials and rare earth materials in the world, decided to save its gold mine in Kazakhstan, known as Vasilkovskoye.

 

http://www.kursiv.kz/news/industry/glencore-resila-sohranit-svou-zolotuu...

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