Archive | Glencore

Glencore to wield power on zinc – by Stephen Bartholomeusz (The Australian – October 4, 2017)

Glencore’s decision to invest up to $US956 million to greatly increase its shareholding in a Peruvian zinc miner may have been motivated by an insight it gained during its dark days in 2015.

Overnight Glencore announced it had reached agreement with shareholders of Volcan Compania Minera, one of the world’s largest producers of zinc, lead and silver, to acquire 27 per cent of the group’s class A shares for $US531 million.

It will make an offer to other Volcan shareholders for up to 48 per cent of the class A shares, which would lift the outlay closer to $US1 billion. Depending on the level of acceptances, Glencore would end up with between 48 per cent and 66 per cent of the class A shares, which have voting rights. It had a pre-existing holding of about 18 per cent of those shares. Continue Reading →

Glencore to spend $956M to increase stake in Peru’s largest zinc producer – by Cecilia Jamasmie ( – October 2, 2017)

Miner and commodities trader Glencore (LON:GLEN) is buying 26.73% of the voting shares in Peru’s largest zinc producer, Volcan Compañía Minera SAA, in a deal worth at least $531 million.

The Swiss company will pay $1.215 per class A common share, which will help it boost its current 7.68% interest in Volcan and which could cost Glencore as much as $956 million, depending on the level of acceptances.

“Volcan’s operations are located in the richest polymetallic production area in Peru, producing some of the highest quality zinc concentrates,” it said in the statement. Continue Reading →

Glencore industrial dispute putting pressure on NSW coal supplies – by Mark Ludlow and Angela Macdonald-Smith (Australian Financial Review – September 20, 2017)

Protracted industrial action at 10 of Glencore’s NSW coal mines and a congested rail network are contributing to supply issues in Australia’s largest state, with fears it could affect the grid’s ability to keep the lights on this summer.

Amid growing concerns about coal-fired power generators being unable to secure enough coal supplies, the Construction, Forestry, Mining and Energy Union has vowed to maintain the industrial unrest at Glencore mines where negotiations have stalled over 10 separate enterprise agreements.

CFMEU national president Tony Maher said the industrial action organised by the unions at about eight mines across the Hunter Valley had had a “material” impact on Glencore’s operations and was affecting their ability to supply coal to customers. Continue Reading →

Glencore fined $200,000 In Sudbury man’s death – by Staff (Sudbury Star – August 29, 2017)

Glencore Canada Corporation has been fined $200,000 for the death of a Sudbury man almost two years ago.

The man, Richard Pigeau, 54, was killed at Nickel Rim South Mine when he was run over by a vehicle. The incident took place on Oct. 20, 2015, at Glencore’s base metal mine near Sudbury, which produces nickel and copper ore, the Minister of Labour said in a release.

“A worker was operating a machine known as a load haul dump (LHD) used in the underground operation to move broken rock or ore,” the ministry said. “While operating the LHD on a ramp, it appeared the bucket of the vehicle made contact with a wall on the right. “The LHD continued to move; the worker was ejected from the operator’s compartment and was run over by one of the vehicle’s tires. The worker died from the injuries.” Continue Reading →

Glencore Zambia Unit May Fire 4,700 Workers Amid Power Spat – by Taonga Clifford Mitimingi and Matthew Hill (Bloomberg News – August 24, 2017)

(Bloomberg) — Glencore Plc’s copper unit in Zambia said a dispute over electricity fees that has already led to reduced power supply may result in the dismissal of 4,700 workers.

Copperbelt Energy Corp. lowered supplies to Mopani Copper Mines after the company refused to pay new power prices introduced by the government at the start of the year. Mopani said the fee increase wasn’t part of its agreement with Copperbelt. Mopani, which employs about 15,000 people including contractors, has notified the government of the planned job losses, Labor Minister Joyce Nonde-Simukoko said by phone.

“It has become necessary for Mopani Copper Mines to curtail some areas of its operations due to the restriction of power,” the Glencore unit said in an emailed statement on Tuesday. “We expect that we shall effectively have to close several areas and our scaled-back operations may affect a total of 4,700 direct employees.” Continue Reading →

It’s Party Time for the Metals No One Knows About – by Thomas Biesheuvel and Mark Burton (Bloomberg News – August 24, 2017)

It’s turning out to be a great year for minor metals. Rechargeable-battery ingredient cobalt has gained 83 percent, while ruthenium, used in the chemical industry and electronics, is up 63 percent.

The latest star is vanadium, an obscure silvery-grey metal thought to have been used to harden steel as far back as the Crusades. The metal, which is also used in energy-storage batteries, has surged 67 percent since mid-July, according to Metal Bulletin data.

Much of vanadium’s rise has been driven by policy changes in Beijing. The China Iron & Steel Research Institute has proposed increasing the amount of vanadium required in construction steel, which would boost consumption, according to VTB Capital and SP Angel research. The new standard is expected to be announced in September. Continue Reading →

Hunt for Next Electric-Car Commodity Quickens as Prices Soar – by Laura Millan Lombrana and Susanne Barton (Bloomberg News – August 23, 2017)

Niche metal cobalt is leaving bigger names like copper and lithium in its dust, triggering a hunt for new deposits from Idaho to Chile.

As one of the key components in the new breed of rechargeable batteries and with supply dominated by the Democratic Republic of Congo, prices have surged at four times the pace of major metals in the past year.

That’s caught the attention of governments, explorers and money managers, with annual demand set to increase 34 percent until 2026 as electric cars gain a bigger share of the global auto fleet, according to CRU Group.

Authorities in Chile, the top copper-producing nation, are embarking on a fact-finding mission with a view to restart cobalt production after a more than seven-decade hiatus. First Cobalt Corp. is merging with two other firms to create what it calls the world’s largest explorer of the mineral. Continue Reading →

Africa’s Biggest Copper Mine Hit by Zambian Power Restrictions – by Matthew Hill and Taonga Clifford Mitimingi (Bloomberg News – August 15, 2017)

Zambia is cutting power to mines including Africa’s biggest copper site, the Kansanshi pit owned by First Quantum Minerals Ltd., escalating a fight over tariffs.

“They have still got some significant amount of power for them to operate, but obviously their operations will not be at 100 percent because of the power restrictions,” Energy Minister David Mabumba told reporters Tuesday in Lusaka, the capital.

Glencore Plc has said it halted production at the Kitwe and Mufulira operations in Zambia’s Copperbelt province after the main electricity provider restricted supplies.

Copper miners in Zambia, Africa’s second-biggest producer of the metal, have been in a dispute with the country’s energy regulator since it raised tariffs by almost 30 percent in 2014. Continue Reading →

Ivan Glasenberg: Glencore still on acquisition trail – by Paul Garvey (The Australian – August 11, 2017)

Glencore chief executive Ivan Glasenberg has talked up the company’s potential for further acquisitions, amid the latest uncertainty over Yancoal Australia’s $US2.69 billion ($3.4bn) purchase of Rio Tinto’s Coal & Allied business.

Glencore has long harboured interest in the Coal & Allied assets, given the potential synergies with its own coalmines in NSW, but was twice outbid for them by the Chinese-backed Yancoal. The two parties subsequently agreed a separate deal under which Glencore would buy 49 per cent of Coal & Allied’s Hunter Valley operations from Yancoal for $US1.14bn plus a share of royalties.

But Hong Kong-based hedge fund Senrigan Capital Group this week lodged an application with the Takeovers Panel, arguing that the proposed deal would be prejudicial to minority shareholders in ASX-listed Yancoal. Continue Reading →

UPDATE 2-Glencore raises trading guidance, sees electric vehicles boosting demand – by Barbara Lewis (Reuters U.S. – August 10, 2017)

LONDON, Aug 10 (Reuters) – Mining group Glencore raised earnings guidance for its trading business, citing higher commodity prices, and said on Thursday increased take-up of electric vehicles and demand for energy storage would boost demand for its products.

Following the commodities downturn of 2015-16, big miners have repaired their balance sheets to help position themselves for growth. Glencore has cut debt and also has a mix of assets that could help it benefit from an upsurge in electric cars.

The company raised full-year guidance for adjusted earnings before interest and tax (EBIT) in its trading or marketing business by $100 million to a range of between $2.4 billion and $2.7 billion. Continue Reading →

Glencore turns bigger copper, zinc price bull: Nickel not so much – by Frik Els ( – August 10, 2017)

Miner and commodities trader Glencore (LON:GLEN) raised its revenue and profit outlook for the year on Thursday with the Swiss company citing the fast-growing electric vehicle market as a key driver.

“Most automotive players are now accelerating investment in/adoption of electric vehicle technologies, reflecting, in part, increasingly aggressive Government mandates around emission targets.

Growth in electric vehicle/energy storage systems requires changes in material flows, including the installation, rebuild and replacement of supporting infrastructure. Based on current and emerging technologies, these changes should benefit enabling commodities such as copper, cobalt and nickel,” Glencore said in a statement accompanying its half-year results. Continue Reading →

Merafe’s profit surges despite drop in sales – by Allan Seccombe (Business Day – August 8, 2017)

Merafe Resources, the junior partner in a chrome joint venture with Glencore, reported a hefty inventory build-up as production exceeded sales, while global demand for the stainless steel ingredient slowed and the market stayed under pressure.

The joint venture is one of the world’s leading sources of ferrochrome and chrome ore, and it operates in SA. Merafe said revenue attributable to the company increased 7% to R2.58bn for the six months to end June compared with that of the same period a year earlier. Profit increased to R486m from R57m, allowing the company to declare a 3c per share dividend. Net debt fell by half to R208m.

Stronger prices in the first half of the year offset a 28% drop in sales to 157,000 tonnes for Merafe’s account, while a stronger rand against the dollar eroded the revenue line. Continue Reading →

Focus on Economy Before Climate Deal, Glencore Urges Australia – by Perry Williams (Bloomberg News – August 2, 2017)

Australia may need to consider delaying its goals to combat global climate change in order to prioritize energy security and economic prosperity, according to a senior executive at Glencore Plc.

The country’s emerging energy crisis, in conjunction with government-imposed clean-energy targets, has undermined investor confidence and may force businesses to shut or move offshore, the commodity giant’s global coal head, Peter Freyberg, said in a speech Wednesday in Sydney.

“If that means Australia needs to consider a possible delay in meeting its emission reduction targets under the Paris Agreement in order to prioritize energy security and economic prosperity, then its worthy of further discussion,” he said, adding that Swiss-based Glencore has invested $20 billion in its Australian assets and last year contributed more than $12 billion to the economy. Continue Reading →

Glencore snaps up 49pc of Hunter Valley Operations in $US1bn deal – by Matt Chambers (The Australian – July 27, 2017)

UPDATE: Glencore has confirmed it had struck a $US1.139 billion deal to buy 49 per cent of the Hunter Valley Operations coal mines from Yancoal Australia and Mitsubishi.

The deal, which is conditional on approvals and the completion of Yancoal’s acquisition of Rio Tinto’s operating stake in HVO as part of a $US2.69bn deal struck last month to buy all of Rio’s Australian thermal coal, is expected to be completed within six months.

Under the deal, revealed by The Australian this afternoon, Glencore has also agreed to subscribe for $US300 million of Yancoal shares in an equity raising to fund Yancoal’s Rio purchase. Continue Reading →

[Ontario] Research to keep miners cool at extreme depths – by Len Gillis (Timmins Daily Press – July 25, 2017)

New research is underway to help miners stay cooler while working at extreme depths underground. Such research could eventually benefit workers at the Kidd Mine in Timmins, which is the deepest base metal mine in the world.

Research scientist Dr. Stephen Cheung of Brock University said the ultimate goal is to find ways to make miners feel cooler and more comfortable and therefore be able to contribute more to more production. “As you know the deeper you go, the hotter the mines are and the greater the energy costs to ventilate those mines so that the miners can actually be working underground,” said Cheung.

“The idea here really is rather than cooling the entire chamber, it is most likely much more cost effective and efficient to be cooling the individual miners. So that’s kind of the genesis or the idea for the whole project,” he added. Continue Reading →