Glencore sells $4.5B Kazzinc stake amid wage strikes and market shifts
Glencore is making headlines with a major stake sale and ongoing wage disputes. The mining giant plans to offload its 70% share in Kazakh producer Kazzinc for up to $4.5 billion. Meanwhile, tensions rise as workers at its Townsville refinery stage strikes over pay offers.
The company's share price remains close to a yearly peak, though recent dips have been noted. Investors now watch how the Kazzinc deal and labour negotiations will shape Glencore's next moves.
Glencore has announced the sale of its 70% stake in Kazzinc, a Kazakh zinc and gold producer. The buyer, local entrepreneur Shakhmurat Mutalip, is expected to pay between $4 billion and $4.5 billion. As part of the agreement, Glencore may provide financing in return for marketing rights to Kazzinc's output.
The deal comes as the company reports strong financials for 2025, with adjusted EBITDA hitting $13.5 billion. Second-half performance surged by 49%, driven by higher copper prices. Despite stable revenues at £59.83 billion, earnings per share held steady at 18p.
On the labour front, Glencore faces pushback from the Australian Workers' Union (AWU). The union accuses the firm of disguising a minimal 3% wage increase over four years. In response, employees at the Townsville copper refinery walked out for four hours last week. Glencore denies the allegations, calling its proposal competitive.
Market factors add further complexity. Rising coal prices earlier this year boosted Glencore's stock by 26% since January. However, iron ore declines have weighed on rivals like Rio Tinto. Currently, Glencore's shares trade near £5.25, down about 4% from a March high of £5.46.
CEO Gary Nagle recently received 1.5 million share units under the company's Career Shares Plan, valued at £5.02 each. Shareholders will also see returns, with a total 2026 dividend of 17 cents per share, split across June and September payments.
The Kazzinc sale and Townsville wage dispute will likely impact Glencore's share price in the weeks ahead. A successful deal could strengthen its financial position, while unresolved labour tensions may create further volatility. The company's performance remains tied to commodity price shifts and operational stability.
