Glencore Xstrata Plc (GLEN), the global commodity trader and metals producer run by billionaire Ivan Glasenberg, agreed to proceed with a study into an iron ore mine in the Republic of Congo that may cost as much as $3 billion.
The assessment, with partner Zanaga Iron Ore Co., “is now being advanced on the basis of a staged development, substantially reducing the initial capital requirement and including the potential for initial production using existing infrastructure,” Baar, Switzerland-based Glencore said today in a statement.
The development cost is now estimated at $2.5 billion to $3 billion, down from $7.4 billion, Zanaga said in a presentation on its website. Glencore’s Glasenberg has led a call for an industrywide crackdown on over-spending on new mines, which he blames for a glut of some raw materials that has trimmed prices and profits for producers. Read more at Bloomberg Businessweek