Glencore to sell Philippine copper smelter to Villar family

[Ben Graham]

Miner and commodities trader Glencore (LON: GLEN) is selling its copper smelting operation in the Philippines to the Villar family, led by real estate magnate and former senator Manuel “Manny” Villar Jr.

The asset in question, the Philippine Associated Smelting and Refining Corp. (Pasar), has long served as a key logistics hub for Glencore. Strategically located, it handles copper concentrate shipments from Australia and Indonesia, and occasionally distressed cargoes bound from South America to China.

But global copper smelters, including Pasar, have been hit hard by a steep drop in treatment and refining charges, driven by overcapacity and limited supply of mined ore. In February, Glencore placed Pasar on care and maintenance, part of a broader restructuring of its global smelting operations.

That overhaul includes consolidating its Canadian copper assets in Quebec and several recycling facilities in the United States into its global zinc smelting division. The move aims at cutting costs and streamlining operations.

The divestment marks another step in Glencore’s sweeping review of its copper and zinc assets, triggered by a sustained slump in profitability across the sector.

Villar, whose net worth is pegged at $17 billion by Forbes, controls the Philippines’ largest homebuilder. His business empire spans shopping malls, broadcast media, hardware retail and supermarkets.

Bloomberg first reported the sale, quoting people familiar to the matter, though details including the deal’s value remain undisclosed.