American Zinc Recycling LLC announces investment by Glencore
American Zinc Recycling LLC announces investment by Glencore
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Pittsburgh-based American Zinc Recycling LLC (AZR) has announced that a subsidiary of Switzerland-based Glencore plc has purchased a 10 percent stake in its wholly owned subsidiary American Zinc Recycling Corp.
This investment has been made in connection with the restart of operations at AZR Corp.’s Mooresboro Zinc Refinery in Mooresboro, North Carolina. Additionally, the company says the investment furthermore involves a commitment by Glencore to purchase and a subsidiary of AZR Corp. to sell all of the zinc metal produced at the Mooresboro Refinery for a period of 10 years after commencement of production.
In connection with the investment, the board of directors of the company has approved a capital spending plan to put the Mooresboro Refinery into full production. Following the completion of the strategic investment, AZR says that this capital spending plan is well-funded.
Transaction highlights include:
- Glencore to take up a 10 percent stake in AZR Corp.
- Subsidiaries of Glencore and AZR Corp. have entered into a technical services agreement and consultancy agreement pursuant to which Glencore will provide, among other things, engineering and project management services directed at accelerating the restart of the Mooresboro Refinery.
- A subsidiary of Glencore and AZR Corp. also have entered into an off-take agreement for a term of 10 years, whereby Glencore has committed to purchase and AZR Corp. to sell the full metal output of the Mooresboro Refinery at prevailing market rates, commencing upon the successful restart of the Mooresboro Facility.
- AZR Corp. and a subsidiary of Glencore also have entered into a separate short-term zinc calcine off-take agreement.
- Glencore will be entitled to appoint one member of the board of directors of AZR Corp.
“This transaction represents a major step forward in our advancement of the Mooresboro project,” says Rodrigo Daud, CEO of AZR. “We are pleased to have attracted the commitment of a world-class operator like Glencore who shares our ambition to advance the project rapidly into production. Glencore’s zinc process engineering and general project execution expertise will enhance our own ongoing activities aimed at rapidly restarting production at Mooresboro.”
Chris Eskdale, head of assets for Glencore Zinc, adds, “Glencore is pleased to be deploying its technical and commercial expertise to work in this unique partnership with AZR, both at Mooresboro and across the AZR group.”
BMO Capital Markets is acting as exclusive financial advisor to the company and Akin Gump Strauss Hauer & Feld LLP was retained as legal advisor.
The Mooresboro Zinc Refinery uses a solvent extraction process to produce special high-grade zinc and alloys by processing waelz oxide and other zinc-bearing secondary materials. Waelz oxide sourced from the company’s other facilities will provide the primary feed for Mooresboro. The Mooresboro Refinery uses low-cost, environmentally friendly processes to selectively refine valuable metals. The company is currently working on the restart of the Mooresboro Refinery.
AZR Corp. is a leading recycler of electric-arc furnace dust. Its parent company, AZR, also owns The International Metals Reclamation Co. LLC, a leading recycler of metals-bearing materials and a leading processor of nickel-cadmium batteries in North America; Zochem Inc., a zinc oxide producer located in Brampton, Ontario; and American Zinc Products LLC, the owner and operator of the group’s Mooresboro, North Carolina, facility.
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The group’s operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities. Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. The company also provides financing, logistics and other services to producers and consumers of commodities. Glencore’s companies employ around 155,000 people, including contractors.
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Source: Recycling Today
American Zinc Recycling LLC announces investment by Glencore
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