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Glencore CEO in 'No Hurry' to Sell Stake in Platinum Producer Lonmin; Talks between Vale Break Down

Glencore CEO Ivan Glasenberg
Glencore acquired a 25 percent stake in South African platinum producer Lonmin last year.

Swiss-based mining company Glencore PLC (LSE:GLEN) is in no hurry to sell its stake in South African platinum mining company Lonmin, the company’s CEO said earlier this week.

"We're in no rush—there's no urgency," CEO Ivan Glasenberg said.

Glencore, the world’s largest commodities trader and fourth-largest mining company, acquired a 25 percent stake in Lonmin in 2013.

However, with falling platinum prices, the company’s CEO has been reported as saying the acquisition did not fit into its strategic plan, adding the company was not familiar with the platinum business.

The news sent shockwaves across the industry that Glencore could potentially be in the market of selling its 25 percent stake in the troubled platinum producing company.

"We'll watch the platinum price and at some stage in the future try to get out of our investment," Glasenberg said.

Lonmin has been hit hard by a wave of strikes in recent years, costing the company over $2 billion. Shares for the company have also fallen, dropping by a quarter this year.

Glencore was also reportedly in talks with Brazilian mining conglomerate Vale to combine their nickel assets in Canada in a deal that would have produced over $1 billion in annual cost savings. According to Reuters, however, the talks have broken off.

"Both sides more or less agreed on what the optimum structure of a combined Sudbury business would look like, but to enable that to be created, very difficult decisions needed to be taken, and the appetite or the ability to take those decisions was not there," a source with knowledge of the situation said.

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