Archive | Glencore

COLUMN-Fight over Rio’s mines means coal isn’t dead; Adani woes show it’s dying – by Clyde Russell (Reuters U.S. – June 26, 2017)

Here’s a question for the anti-coal lobby. If coal is dying, how come there is an increasingly heated bidding war going on for Rio Tinto’s coal mines in Australia? Here’s another question, this time for the pro-coal lobby. If coal still has a viable long-term future as an energy source, how come the world’s biggest planned new mine is now hostage to whether the Australian government decides to loan it money?

Reconciling these two questions may seem like a challenge but both the battle for Rio Tinto’s existing mines and the struggles of India’s Adani to build its Carmichael project neatly show where coal currently finds itself.

Rio’s mines in the Hunter Valley north of Sydney are attractive to both Glencore and China’s Yancoal because they are likely to be profitable for the remaining life of the pits, which is expected to be around 20 years. Continue Reading →

Bidding war intensifies for Rio Tinto’s Hunter Valley coal mines – by David Chau (Australian Broadcasting Corporation – June 26, 2017)

Rio Tinto is currently in a dilemma on who it should sell its Hunter Valley mines to – the Swiss or the Chinese. Late on Friday, Swiss-based company Glencore upped its bid to more than $3.5 billion (US$2.685 billion) for the purchase of Rio’s subsidiary, Coal & Allied Industries Limited.

The assets on the block are Rio’s Hunter Valley operations – the Warkworth/Mount Thorley thermal and semi-soft coking coal mines and a major stake in the Port Waratah coal loading facility in Newcastle.

Glencore said its latest offer is around $297 million ($US225 million) greater than Yancoal’s proposal. “We believe the Glencore offer satisfies the criteria for a ‘superior proposal’: it delivers substantially greater value to Rio Tinto shareholders and low deal completion risk,” Glencore said in a statement. Continue Reading →

Glencore ramps up bidding war for Rio Tinto’s coal mines – by Jon Yeomans (The Telegraph – June 23, 2017)

Glencore has stepped up the bidding war for Rio Tinto’s coal mines in Australia by returning with a higher offer.

The Switzerland-based mining group said it would offer $2.68bn (£2.1bn) in cash, payable in one lump sum, for Rio’s Coal & Allied business in New South Wales. This represents an advance on the $2.55bn it offered earlier this month and is considerably more than the $2.45bn offered by Yancoal, the Chinese-backed miner that is Rio’s preferred buyer.

Glencore, led by billionaire Ivan Glasenberg, has coal mines adjacent to Rio’s operations in the Hunter Valley, and believes it can make substantial savings by joining the two businesses together. Earlier this week Rio said it would stick with Yancoal’s offer, first made in January, because it had already gained regulatory approvals for the deal. Continue Reading →

Rio Tinto recommends Yancoal coal offer over Glencore – by James Regan and Barbara Lewis (Reuters U.S. – June 20 2017)

SYDNEY/LONDON – Rio Tinto (RIO.L) (RIO.AX) selected Yancoal (YAL.AX) on Tuesday to buy its Coal & Allied division in Australia for $2.45 billion, surprising commodities trading giant Glencore (GLEN.L) which had put in a higher bid.

Earlier this month, Glencore offered $2.55 billion cash for Rio’s coal mines in the Hunter Valley region of New South Wales, beating a previous offer from Yancoal, which is based in Australia and owned by China’s Yanzhou Coal Mining Company.

Glencore has long sought Rio’s high-quality thermal coal assets in the Hunter Valley. Despite environmental concerns about the carbon-intensive fossil fuel, Glencore expects continued demand, especially in Asia, as coal can still be the cheapest form of baseload power. Continue Reading →

We’re confident a bid for Rio Tinto will clear hurdles: Glencore – by Bridget Carter and Scott Murdoch (The Australian – Jun 15, 2017)

Rio Tinto’s preferred bidder is expected to be revealed next week and Glencore is lobbying that its offer is unlikely to be hamstrung by onerous legislative hurdles.

The Switzerland-based trading house’s global coal boss, Peter Freyberg, briefed the Rio Tinto board in Montreal overnight and reportedly emphasised it was confident regulators would not pose an insurmountable hurdle.

Glencore’s critics have highlighted that China’s Ministry of Commerce took six months to approve the company’s purchase of a 50 per cent stake in Rio Tinto’s Clermont mine. But the six months was based on the fact that the Mofcom, arguably the country’s second most powerful arm of government, was examining the broader Glencore and Xstrata transactions. Continue Reading →

Glencore’s Coal Future Burns Bright – by David Fickling (Bloomberg News – June 12, 2017)

Is Glencore Plc’s last-minute bid for Rio Tinto Group’s Australian thermal coal assets about quantity, or quality? It’s a bit of both. With a tenement footprint that’s more or less surrounded by Glencore’s own mines, Rio Tinto’s Hunter Valley pits have long been an obvious target for the trader.

In volume terms, the $2.55 billion offer looks like the sort of deal that typically went down a decade ago, when the thermal coal used in power stations was a hot commodity and the likes of Rio Tinto and Anglo American Plc were looking to add assets, rather than exit ones still on their books.

Glencore is by far the biggest coal miner in the Hunter Valley, the region north of Sydney that supplies the world’s biggest coal export harbor at Newcastle. But its mines are rapidly depleting, and will run out in about a decade at current production rates. Add Rio Tinto’s vast resource base and lower output pace, and you could comfortably extend that deadline into the mid-2030s or beyond. Continue Reading →

Glencore outbids Yancoal for Rio Tinto’s Hunter Valley coal mines – by Barbara Lewis and Sanjeeban Sarkar (Reuters U.S. – June 9, 2017)

Miner-trader Glencore (GLEN.L) on Friday said it had offered $2.55 billion cash for coal mines owned by Rio Tinto (RIO.L) (RIO.AX) in Hunter Valley, Australia, outbidding a previous offer from Chinese-owned Yancoal.

The large-scale, long-life assets are next to mines already owned by Glencore, which has predicted continued demand for coal, especially in Asia, despite environmental opposition to the most polluting form of fossil fuel.

In January, Rio said it was selling its interest in Coal & Allied Industries Limited (C&A) to Yancoal Australia Limited (YAL.AX) for $2.45 billion. The terms allowed Rio to engage in negotiations with another party if it made a better offer. Continue Reading →

Race Is on to Mine Metal Powering Electric Vehicles – by David Stringer (Bloomberg News – June 8, 2017)

The race is on to supply more of the cobalt needed for batteries in the fast-growing market for electric vehicles — and that means fresh competition for the big players Glencore Plc and the Democratic Republic of Congo.

A pipeline of projects is looming in places including Australia, the U.S. and Canada after cobalt prices more than doubled in the past year. Glencore produces almost a third of the world’s supply, mainly from the Congo, which is by far the biggest source, accounting for as much as 65 percent.

Among those backing new global developments are billionaire Anil Agarwal and mining tycoon Robert Friedland. They’re aiming to capitalize as a battery boom sends demand for cobalt soaring more than 30-fold by 2030, according to Bloomberg New Energy Finance. Continue Reading →

Trump ‘Has a Point’ on China’s Cheap Aluminum, Glencore CEO Says – by Jack Farchy, Erik Schatzker and Mark Burton (Bloomberg News – June 1, 2017)

Donald Trump “has a point” in criticizing China’s trade in aluminum and steel as cheap power has effectively been a subsidy to Chinese producers, said Glencore Plc chief Ivan Glasenberg.

Trump should be pragmatic in dealing with China, given that it imports a lot of U.S. goods, said Glasenberg during a Bloomberg Television panel at the St. Petersburg International Economic Forum.

“China was producing coal and selling it to the power stations at a loss,” he said. “Aluminum companies were getting subsidized power.” Continue Reading →

Glencore threat to quite Mt Isa because of energy woes – by John McCarthy (Brisbane Courier-Mail – May 30, 2017)

GLENCORE and the State Government are trying to resolve a crippling energy problem which could force the loss of 2000 jobs in north Queensland. The mining giant has again threatened to close its Mt Isa copper operations because of the high energy costs which have combined with high rail and labour costs.

It made the threat in 2016 over the high cost of operating the assets because of environmental conditions and earlier this month said energy costs were at the heart of the latest threat. The company held talks with the State Government on Tuesday as part of ongoing negotiations to resolve the issues.

It said the State Government had made a significant effort to engage on the issue but the company’s focus was on investigating options for secure, affordable and reliable energy and electricity supply at Mt Isa and Townsville to service its operations. Continue Reading →

[Ireland Mining] Glencore starts drilling again at Pallas Green – by Gavin McLoughlin (Irish Independent – May 28, 2017)

Mining giant Glencore has re-started drilling at its Pallas Green prospect in Limerick, the Sunday Independent has learnt.

The project had been put into abeyance for a number of years, but Glencore has moved eight rigs on to the site in recent weeks.

The company, which has had a turbulent run on the back of falling commodity prices and a large debt pile, recently declared “job done” on efforts to cut its debt. A Glencore spokesman confirmed that the company had engaged a local firm for drilling at Pallas Green. Continue Reading →

Canada’s Trevali picks up Glencore zinc mines in Africa – by Cecilia Jamasmie ( – May 18, 2017)

Trevali Mining’s (TSX:TV) shareholders approved Thursday a planned acquisition of Glencore’s two African zinc mines, in a transaction that makes of the Canadian miner one of the few multi-asset, low-cost global zinc producers.

The acquisition of about 80% of Rosh Pinah mine in Namibia and a 90% stake in in the Perkoa mine in Burkina Faso, will help the Vancouver-based firm’s total production double to about 410 million pounds per year.

The deal also includes gives Trevali an effective 39.24% interest in the Gergarub project in Namibia, an option to acquire the Heath Steele property in Canada, and certain related exploration properties and assets, it said in the statement. Continue Reading →

Glencore Says Electric Car Boom Is Coming Faster Than Expected – by Jesse Riseborough  (Bloomberg News – May 16, 2017)

Glencore Plc Chief Executive Officer Ivan Glasenberg said the rise of electric cars will significantly boost demand for minerals including copper and lithium in the coming decades.

“The electric vehicle revolution is happening and its impact is likely to be felt faster than expected,” Glasenberg told investors at an industry conference in Barcelona on Tuesday. Almost all carmakers are increasing investment in electric vehicles as governments adopt tighter emissions targets, he added.

Electric vehicles require more copper wiring than standard internal combustion engines. For example, the battery in an electric car contains about 38 kilograms of copper, 11 kilograms of cobalt and 11 kilograms of nickel, according to Glencore. Continue Reading →

Glencore in talks to sell Peru, other mining royalties: sources – by Clara Denina and Nicole Mordant (Globe and Mail/Reuters – May 3, 2017)

LONDON and VANCOUVER – Mining-trading group Glencore Plc has hired the Bank of Nova Scotia to sell a portfolio of royalty assets, including one for the Antamina copper-zinc mine in Peru, four people familiar with the process have told Reuters.

The Antamina mine royalty makes up the bulk of the value of the package and could fetch up to $250-million, the sources said. The portfolio includes several much smaller royalties from other mines and exploration assets owned by Glencore around the world, they added.

It is not clear whether Glencore will sell 100 per cent of the royalties, which gives the owner the right to receive a percentage of production from a mining operation, or retain a stake in them. Continue Reading →

Faith in coal breathing new life into Surat Basin plan – by John McCarthy (Queensland Courier-Mail – May 3, 2017)

NEW life has been breathed into Glencore’s $6 billion Wandoan thermal coal project, east of Roma, as mining companies dust off plans for developments in the Surat Basin.

The Courier-Mail understands Glencore will receive its mining lease for Wandoan within weeks. The mine will create about 1300 jobs in construction and more than 800 in operation, but Glencore will not comment until after it receives the lease. It will not be alone.

New Hope Group has a resource of one billion tonnes of coal in the Surat and is advanced in a feasibility study aimed at potentially starting development of its projects within three years. The proposals are likely to spark a renewed fight with environmental activists. Continue Reading →