Glencore forms JV with Canada pension fund

Glencore has formed a 50:50 joint venture with the Ontario Teachers' Pension Plan called BaseCore Metals, which will actively pursue investment opportunities focusing mainly on base metals streams and royalties.

Under the terms of the agreements for BaseCore Metals, Glencore contributed a portfolio of selected royalties and the Canadian pension fund contributed cash, with the initial royalty interest valued at $300m.

The royalty portfolio includes a selection of existing royalties on producing and development stage properties in North and South America, including the Antamina and Highland Valley mines as well as the Horne 5 and El Pilar projects.

Glencore chief executive officer Ivan Glasenberg said: "The creation of BaseCore Metals is unique in the sector and will enable us to secure further offtakes for our marketing business. We are pleased to be partnering with Ontario Teachers' to take advantage of the significant opportunities that are expected to emerge across the sector in the coming years."

BaseCore Metals will be an independently operated entity, governed by its own board of directors. Glencore and Ontario Teachers' will each have the right to nominate directors to the board.

At 1550 GMT, Glencore shares were down 2.2% to 334.10p.