Ontario Teachers’ to partner in $700 mln mining royalty venture

Ontario Teachers’ Pension Plan is finalizing a US$700 million deal with Swiss mining giant Glencore Plc to create a new base-metals royalty vehicle, Bloomberg reported, citing sources.

Glencore will bring royalty agreements from about 10 mines, while Ontario Teachers’ will contribute about US$350 million to allow the company to buy further royalty streams from other projects, the report said. The partners will each have a 50 percent stake in the new vehicle.

The Bloomberg report adds to a report by Reuters in July. Sources told Reuters that Ontario Teachers’ was working with Glencore to create a joint venture for the company’s portfolio of royalty assets and to purchase royalties from other miners’ operations. No financial terms were disclosed.

Bloomberg said the deal is expected to close in the next few weeks.

Photo courtesy of Reuters/Michael Buholzer