Switzerland-based Glencore is the world’s largest producer of cobalt, which is mined alongside copper at its Katanga and Mutanda mines in the Democratic Republic of Congo. It is currently considering an expansion of its Tenke Fungurume. The cost of the expansion of this property is estimated to be around $850 million.

a. Describe three major risks in undertaking this project.

b. How can Glencore structure its financing to reduce these risks?

c. How can Glencore use financing to add value to this project?