Archive | Glencore

COLUMN-As Glencore restarts capacity, is time up for zinc rally? – by Andy Home (Reuters U.S. – December 14, 2017)

LONDON, Dec 14 (Reuters) – When Glencore announced it was curtailing 500,000 tonnes of capacity at its zinc mines in October 2015, the price of three-month zinc on the London Metal Exchange was $1,700 per tonne.

The price is now $3,175 per tonne, hovering within striking distance of last month’s 10-year high of $3,326. Glencore can’t take full credit for the bull surge of the last two years but its curtailments acted as a powerful accelerator to a structural shift towards supply deficit.

So what happens next, now the company has just announced the first restart at the Lady Loretta mine in Australia? The market seems unfazed. Indeed, LME zinc rallied on the news, the bear sting masked by a headline decline in forecast production next year. Continue Reading →

Glencore Is the Devil on Mining’s Shoulder – by David Fickling (Bloomberg News – December 12, 2017)

The mining industry these days resembles that old cartoon about a person torn between prudence and temptation.

On one shoulder, a white-clad angel is whispering about the virtues of capital discipline, shareholder value and generous dividends. On the other sits Glencore Plc Chief Executive Officer Ivan Glasenberg, clad in red and promising to buy or build everything in sight.

The reason for that contrast was laid out clearly at the start of a Glencore investor presentation Tuesday. Uniquely among its peers, Glencore derives a substantial slice of its earnings from trading commodities, rather than producing them. When mining is weak, marketing can take up the slack, and vice versa, as this company chart shows: Continue Reading →

Glencore sees battery minerals powering profit in 2017 and beyond – by Barbara Lewis and Arathy S Nair (Reuters U.K. – December 12, 2017)

LONDON (Reuters) – Miner and trader Glencore (GLEN.L) said on Tuesday its battery minerals, especially cobalt, should spur profit in 2017 and beyond in an update for investors that also promised to grow the business, especially through partnerships.

It said its marketing, or trading, division’s 2017 EBIT (earnings before interest and tax) would be at the top end of its previous guidance at $2.8 billion, steady from 2016 but effectively an increase given that Glencore sold half of its agriculture business last year.

The company also issued full-year 2018 overall EBITDA (earnings before interest, tax, depreciation and amortisation) guidance of $16.2 billion, slightly below some analysts forecasts, but higher than Glencore’s guidance for full-year profit this year of $15 billion. Continue Reading →

Glencore to Double Cobalt Output on Electric Vehicle Demand – by Thomas Wilson (Bloomberg News – December 12, 2017)

Glencore Plc will double its production of cobalt in the next two years, tightening its grip on the market for the key battery component of electric vehicles.

The Swiss commodity giant’s Toronto-listed Katanga Mining Ltd. in the Democratic Republic of Congo will produce as much as 34,000 tons in 2019, Katanga said Monday. That compares with the 20,000 tons-a-year guidance Chief Executive Officer Ivan Glasenberg gave in August and could give Glencore control of about 40 percent of world supplies, according to current data.

Glencore, which mines products from coal to zinc and trades some 100 raw materials, is zeroing in on cobalt after prices more than doubled this year on demand from automobile and battery manufacturers. Continue Reading →

Congo mines say revised code threatens industry’s future (Reuters U.S. – December 11, 2017)

DAKAR, Dec 11 (Reuters) – Mining companies in Democratic Republic of Congo said on Monday that proposed changes to the mining code adopted by the lower house of parliament last week would do lasting damage to investment in Africa’s top copper producer.

The process of revising the 2002 mining code in Congo has dragged on for over five years but the National Assembly on Friday approved a bill that would increase taxes and royalties and sent it to the upper house Senate for a second vote.

The measure would also increase the state’s minimum unpaid share of new mining projects and require that Congolese investors hold at least 10 percent of shares in large-scale mines. Continue Reading →

Remembering the ‘magical’ Falcona Camp: former company-run camp closing after 80 years – by Eric White (CBC News Sudbury – December 11, 2017)

Name of camp switched to Camp Falcona when taken over by YMCA in 1990s

Lana Sissons has spent most of her summers on the shores of Nelson Lake, in the northern reaches of what is today Greater Sudbury.

When she was five years old back in 1948, she first went to Falcona Camp, which was built in 1937 for the children of the men who worked in the Falconbridge nickel mines.

For Sissons, it meant spending the summer with all of her friends, who also lived in the company town of Falconbridge. Among them was her future husband Bob, who grew up across the street. Continue Reading →

Glencore, Ontario Teachers’ Pension Plan launch mining royalty firm – by Niall McGee (Globe and Mail – December 6, 2017)

AngloSwiss mining giant Glencore PLC has struck a deal with the Ontario Teachers’ Pension Plan to create a private royalty and streaming business – one of the first of its kind in the base metals sector.

BaseCore Metals starts life with a portfolio of existing Glencore royalties in North and South America worth $300-million (U.S)., and includes a royalty on Highland Valley, a Teck Resources Ltd. copper mine in British Columbia.

According to a joint press release on Tuesday, Teachers paid cash to Glencore for its 50-per-cent share in the entity. The pension fund declined to comment further when asked by The Globe and Mail about the exact amount of its investment. Continue Reading →

Electric charge: Glencore bets big on car battery metals – by Barbara Lewis and Maiya Keidan (Reuters Canada – December 5, 2017)

LONDON (Reuters) – Glencore (GLEN.L) has increased production of the metals used to make electric car batteries faster than its major mining rivals, according to an industry-wide analysis that shows the scale of a strategy that has big prospective risks and rewards.

The Anglo-Swiss company’s output of cobalt and copper roughly doubled in the five years to 2016, while its production of nickel quadrupled, the research compiled for Reuters by S&P Global Market Intelligence shows. (Graphic: Glencore’s mining production –

Electric vehicle metals account for roughly 50 percent of Glencore’s core profit, more than double the proportion of its major listed competitors – BHP (BLT.L) (BHP.AX), Rio Tinto (RIO.L) (RIO.AX) and Anglo American (AAL.L). Continue Reading →

Glencore executives resign from Katanga board amid regulatory probe – by Niall McGee (Globe and Mail – November 21, 2017)

Three Glencore PLC executives have resigned from the board of its Toronto-listed subsidiary Katanga Mining Ltd. after an internal review found “material weaknesses” in its financial reporting controls, amid a regulatory probe by the Ontario Securities Commission (OSC).

On Monday, Switzerland-based Katanga announced it is restating a number of financial documents, including its consolidated financial statements for the 2015 and 2016 fiscal years, and its management discussion and analysis (MD&A) for the quarters ending March 31, 2017 and 2016. The company also said its chief financial officer, Jacques Lubbe, was stepping down.

Katanga owns copper and cobalt operations in the Democratic Republic of Congo and is majority owned by Glencore, a giant Anglo-Swiss metals and mining conglomerate. Continue Reading →

Mining’s $45 Million Man Eyes an Earth-Shattering Return – by Chris Hughes (Bloomberg News – November 14, 2017)

The shortlist for the next chair of Rio Tinto Plc will incense the corporate governance crowd. At the top is Mick Davis, former CEO of Xstrata Plc. His association with high boardroom pay makes him a divisive candidate.

Davis drew criticism at Xstrata for remuneration well above industry norms. The attacks came to a head when he was offered a $45 million retention plan to stay with the company after a proposed merger with Glencore Plc in 2012.

Shareholders later resoundingly vetoed the package, and embarrassed Xstrata’s board by pushing for more generous financial terms. The deal had to be recast as a takeover by Glencore. Continue Reading →

Glencore Is Close to Creating a Mining Royalty Company – by Thomas Wilson, Scott Deveau and Jack Farchy (Bloomberg News – November 14, 2017)

Glencore Plc is close to finalizing a $700 million deal with the Ontario Teachers’ Pension Plan to create a new base-metals royalty company, according to people familiar with the matter.

The Swiss commodity giant will bring royalty agreements from about 10 mines, while Ontario Teachers’ will contribute about $350 million in capital to allow the company to buy further royalty streams from other projects.

Glencore and Ontario Teachers’ will each have a 50 percent stake in the new vehicle and the deal is expected to close in the next few weeks, the people said, asking not be to identified as the talks are confidential. Continue Reading →

Vehicle offers quicker response for Kidd mine rescue team – by Len Gillis (Timmins Daily Press – November 6, 2017)

TIMMINS – With Glencore’s Kidd Mine in Timmins being the deepest base metal mine in the world, innovation has become a way of life there. The most recent change is the delivery of a tricked-out Toyota truck that can bring mine rescue teams to the most remote areas of the massive mine more quickly than ever before.

The Mine Rescue Emergency Response Vehicle (MRERV) is being put through its paces these days as mine rescuers get training on driving the truck and learning to drive it onto the mine’s huge elevator known as the cage.

Normally the cage is used to transport miners, mining materials, tools and explosives from surface into the depths of the mine. But the cage is also big enough and robust enough to carry a vehicle. Continue Reading →

Revealed: Glencore’s secret loan to secure DRC mining rights – by Ben Doherty and Oliver Zihlmann (The Guardian – November 5, 2017)

The world’s largest mining company, Glencore, secretly loaned tens of millions of dollars to an Israeli billionaire after it enlisted him to secure a controversial mining agreement in the Democratic Republic of the Congo, the Paradise Papers reveal.

The documents show in forensic detail how the mining magnate Dan Gertler held Glencore’s imprimatur as key negotiator with DRC authorities.

The Paradise Papers, a leaked cache of documents including more than 6m from within Appleby, one of the world’s leading and most secretive offshore law firms, lay bare the arcane multi-jurisdictional dealings of Glencore, a scandal-plagued Swiss multinational with mining interests across the globe, but particularly in Africa. Continue Reading →

One Metal Will Be Transformed by the Electric Car Boom – by Mark Burton and Jack Farchy (Bloomberg News – October 31, 2017)

Glencore Plc and Trafigura Group Pte are often at loggerheads, but one thing they agree on: the nickel market will be transformed by the rise of electric cars.

Nickel sulphate, a key ingredient in lithium-ion batteries, will see demand increase 50 percent to 3 million metric tons by 2030, Saad Rahim, chief economist at Trafigura, said in an interview. While other battery metals like cobalt and lithium have more than doubled since the start of last year, nickel prices have been subdued because of large inventories.

“When you look structurally, we should start to get bullish now,” Rahim said. “Are you going to be able to meet that demand when the time comes, given underinvestment in the supply side?” Continue Reading →

Xstrata Zinc Brunswick Mine, Bathurst,New Brunswick-“End of an Era” documentary by Glen Ferguson (April 2013)

“End of an Era” Brunswick Mine. Shot and edited by Glen Ferguson.

A historical look at Northern New Brunswick’s, Brunswick Mine.
Once the world largest zinc mine, this long time economic staple our the region has recently closed.

Over 50 years of unique history that changed the provinces Northern communities for ever and Over 7500 employees, thousands of contractors, students etc. worked the mine over its life span.