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Glencore Will be Majority Owner of PolyMet

PolyMet announces Glencore will become majority owner of the project. PolyMet announces Glencore will become majority owner of the project. |  Photo: WDIO FILE

Updated: June 27, 2019 02:53 PM

As expected, Glencore is going to be the majority owner of PolyMet.

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On Thursday, PolyMet announced the preliminary results of its $265 million dollar rights offering. The company said Glencore, a Swiss-based commodities group, will own nearly 72% of the project. Before, it owned about about 30%. The partner has been supporting PolyMet for the past 11 years.

It's the first permitted copper-nickel mine and processing plant in Minnesota, planned for Babbitt and Hoyt Lakes.

"We thank all of our shareholders for their interest in and support for this project, and are grateful to those who participated in this rights offering," said Jon Cherry, president and CEO, "The issuance of the federal wetlands permit in March, which brought the project to a fully permitted status, and clearing our balance sheet of debt with this rights offering puts us in a much stronger position to obtain construction financing for the project. We could not have achieved either one of these major milestones without Glencore's longstanding technical and financial support." 

According to PolyMet, the sale will actually be finalized tomorrow. The closing will mark the repayment of their debt. PolyMet said they are laser focused on obtaining the financing to start construction.

Not everyone is pleased.

Kathryn Hoffman, Chief Executive Officer of the Minnesota Center for Environmental Advocacy, released the following statement in response to Glencore assuming ownership: "Glencore's worldwide record of environmental disasters, violations of human rights and disregard for workers and labor rights speaks for itself. With former BP CEO Tony Hayward at the helm of Glencore, Minnesota may soon face our own version of the Gulf oil spill. The terrible record of Glencore and its leaders should concern every Minnesotan."  

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