Archive | Glencore

Going deep in Sudbury: Onaping Depth project holds promise for Glencore – by Lindsay Kelly (Northern Ontario Business – April 18, 2017)

https://www.northernontariobusiness.com/

When Shayne Wisniewski envisions what the future of underground mining will look like in Sudbury, he sees depth and he sees innovation. As general manager of mining projects for Sudbury Integrated Nickel Operations (Glencore), Wisniewski is responsible for evaluating the company’s Onaping Depth project, which will extend to a depth of more than 2,500 metres, considered an ultra-deep mine.

Located about a 45-minute drive from the city of Sudbury, in the vicinity of the company’s Craig and Onaping Mines, the nickel-copper-PGE deposit was first discovered in 1994, when the company was looking for the down dip extension for Onaping and Craig, Wisniewski said.

Glencore undertook a drill program in the area in 2014 and discovered a fair-size indicated and inferred resource in two zones: a contact zone and a footwall southeast zone. Continue Reading →

Canada’s Gran Colombia Gold files $700 million lawsuit against Colombia over Marmato project – by Luke Taylor (Financial Post – April 11, 2017)

http://business.financialpost.com/

BOGOTA — Canadian miner Gran Colombia Gold has filed a US$700 million lawsuit against Colombia under the Colombian-Canadian free trade agreement after the government ordered the company to cease operations at the El Burro site in Marmato until it has further consulted with local residents.

The Marmato project has been plagued by controversy ever since operations began 10 years ago, with heavy resistance from traditional mining communities of the 500 year-old town. The company has been unable to remove illegal miners from the area — by some reports, illicit mining is a US$2.5 billion industry in Colombia.

Gran Colombia’s plan to flatten a mountain and create an open pit mine has also met with resistance. Critics say the initiative would not only destroy the livelihoods of the miners, but also the surrounding community and the environment. Continue Reading →

Timmins launches assessment appeals against local mines – by Len Gillis (Timmins Daily Press – March 30, 2017)

http://www.timminspress.com/

Timmins has taken steps to appeal the assessed values of all the major local mining properties to the Ontario Assessment Review Board (ARB), on the grounds that mining property assessments are just too low. This is being done on a “just-in-case” basis since the city is already in negotiations with the three big mining companies in town to reach some sort of a deal outside of the MPAC (Municipal Property Assessment Corporation) assessment values and procedures.

Part of the reason is that in recent years MPAC has laid out new valuations for mining properties. In many cases means that MPAC is applying lower values to those properties. That means less tax money going into the city hall treasury.

MPAC has mentioned the term Economic Obsolescence (EO) in one of its studies relating to the gold mining industry to justify the need to provide lower valuations. “EO can be described as a form of depreciation or an incurable loss in value that occurs when influences external to an asset itself reduce the value of the asset,” said the study.

Continue Reading →

Threat of Cyclone Disrupts Mining in No. 1 Met Coal Exporter – by Ben Sharples and Perry Williams (Bloomberg News – March 27, 2017)

https://www.bloomberg.com/

BHP Billiton Ltd. and Glencore Plc are halting some production in the world’s largest exporter of coal used in steel-making, as the biggest cyclone since 2011 to hit Australia’s Queensland nears the state.

South Walker Creek metallurgical coal mine operations will be suspended from the end of day shift on Monday and preparations are under way to manage increased rainfall throughout the week, BHP said in a statement. Glencore is preparing to temporarily halt output from the Collinsville and Newlands mines, the company said in a separate release.

Severe tropical cyclone Debbie is forecast to cross the coast Tuesday morning with wind gusts up to 260 kilometers (162 miles) per hour, according to the Bureau of Meteorology. Previous storms in Australia have flooded mines, swamped machinery and led to price spikes. Continue Reading →

Glencore tightens grip on zinc through deal with Canada’s Trevali – by Barbara Lewis and Eric Onstad (Reuters U.S. – March 14, 2017)

http://www.reuters.com/

LONDON – Miner-trader Glencore (GLEN.L) has increased its control of core commodity zinc through a deal with Canada’s Trevali (TV.TO) in which it is selling shares in two mines and helping to create the first pure zinc company with wide geographical reach.

Glencore’s share price has risen around 13 percent this year, adding to gains of more than 200 percent in 2016 when it rebounded from a commodities price crash. Its CEO Ivan Glasenberg has said it is well-placed for deals, which analysts say are as likely to involve commodity offtake or tactical disposals as acquisitions.

Through a $400 million transaction, announced late on Monday, Glencore is selling 80 percent and 90 percent stakes respectively in a mine in Namibia and another in Burkina Faso to Trevali with which it has a long-standing relationship. Continue Reading →

Cobalt’s meteoric rise at risk from Congo’s Katanga – by Henry Sanderson (Financial Times – March 14, 2017)

https://www.ft.com/

Reopening of mothballed mine and uncertainty over China demand weighs on metal’s price

Hedge funds and speculators betting that the electric vehicle revolution will drive prices of battery material cobalt into the stratosphere could be wrongfooted.

Next year Glencore, the world’s biggest producer of the bluish metal, is due to bring the Katanga mine in the Democratic Republic of Congo back on line after a $430m overhaul of its processing system. The operation has the potential to add as much 22,000 tonnes of cobalt to a market with annual output of around 100,000 tonnes.

That could bring the price of cobalt, which has surged 135 per cent this year, back to earth with a bump. Goldman Sachs analysts say the resumption of production at Katanga “will significantly change the supply dynamics” for cobalt and ensure the market is well supplied up to the end of 2019. Continue Reading →

Why Glencore bought Israeli tycoon out of Congo mines – by Tom Burgis (Financial Times – March 13, 2017)

https://www.ft.com/

LONDON – After years of doing business together in one of the world’s poorest countries, Glencore has dissociated itself from Dan Gertler, an Israeli mining tycoon implicated in the payment of bribes to the ruler of the Democratic Republic of Congo.

Glencore’s announcement last month that it would pay $534m to Mr Gertler to buy him out from their shared prize assets in the DRC — two giant copper mines — is designed to insulate the London-listed mining cum trading behemoth from the fallout of a widening corruption investigation involving the Israeli businessman, say people who have followed the saga.

The decision by Ivan Glasenberg, Glencore’s chief executive, highlights the risks of doing business in the resource-rich, war-torn central African country, where Mr Gertler wields influence by virtue of his close friendship with Joseph Kabila, the DRC president. Continue Reading →

[Cobalt] Glencore Is on to a Winner With This Obscure Metal – by Mark Burton (Bloomberg News – March 8, 2017)

https://www.bloomberg.com/

Cobalt is having a moment in the spotlight. Historically a minor byproduct of copper and nickel mining, the metal is a key ingredient for lithium-ion batteries and now a growing money maker for Glencore Plc.

In the past eight months, prices more than doubled on speculation that supply won’t keep up with demand for batteries in electric cars. Glencore, the largest cobalt producer, plans to about double output by 2018, and only coal, copper and zinc offer more of an earnings boost when prices rise.

Cobalt, which has been in oversupply for years, was often treated as an afterthought at the copper and nickel mines where it’s found. Now, demand for the once obscure metal that’s mined largely in the Democratic Republic of Congo is soaring as it graduates from mobiles to larger batteries in electric vehicles and homes. Continue Reading →

Glencore Paid Gertler’s Firm $100 Million Congo Royalties – by Thomas Wilson (Bloomberg News – March 2, 2017)

https://www.bloomberg.com/

Glencore Plc paid more than $100 million previously owed to the Democratic Republic of Congo’s state mining business to a company controlled by billionaire investor Dan Gertler, according to advocacy group Global Witness.

It’s the first time the value of the payments made to Gertler have been made public, after London-based Global Witness reported in November that government-owned Gecamines signed over its royalties from the Kamoto copper project in southeastern Congo to Gertler in January 2015. Gertler’s privately held Fleurette Group said the payments were made on instruction from Gecamines to help repay a loan.

Glencore’s Katanga Mining Ltd. made the royalty and contractual bonus payments over the past four years to Africa Horizons Investments Ltd., a unit of Fleurette, Global Witness said in a report published Friday. Glencore confirmed the payments to Gertler’s company in a letter to the advocacy group. In previous filings, Katanga Mining either said the payments went to Gecamines or didn’t specify the recipients. Continue Reading →

Vale, Glencore back in the black – by Staff (Sudbury Star – February 24, 2017)

http://www.thesudburystar.com/

Two of Sudbury’s most important employers reported healthy profits on Thursday. Brazilian miner Vale SA said it made a net profit of US $3.98 billion in 2016, while Glencore made US $1.99 billion. The results are a dramatic turnaround for both companies, which have struggled with low commodity prices and high debt in recent years.

Vale reported on Thursday net profit of $525 million for the fourth quarter, falling short of analyst expectations but reversing a heavy loss in the period a year earlier thanks to record output and higher iron ore prices.

A Reuters poll of analysts had forecast net profit of $1.8 billion in the quarter, but the world’s largest producer of iron ore fell short on account of impairments totaling $2.9 billion, principally on fertilizer and nickel assets. In the same period of 2015, Vale reported a net loss of $8.6 billion. Continue Reading →

Ivan Glasenberg keen to tell the world he is back on top – by Neil Hume and David Sheppard (Financial Times – February 24, 2017)

https://www.ft.com/

The morning after announcing a return to profit that capped a dramatic turnround for Glencore, you could have forgiven Ivan Glasenberg, the mining and trading company’s billionaire chief executive, for enjoying a lie in.

Not so. By 5.45am on Friday, the 60-year-old was in the lobby of his hotel in London’s Park Lane, limbering up for a run with a select group of analysts and other associates who were much younger than him.

After a brisk 7km around Hyde Park — clocking 4m 48s/km — he dashed off to a breakfast meeting with investors. By the evening Ivan, as he is universally known in the commodities industry, was preparing to head to Florida to attend a mining conference. Continue Reading →

Analysts acclaim Glencore’s performance as good fundamentals return – by Martin Creamer (MiningWeekly.com – February 23, 2017)

http://www.miningweekly.com/

JOHANNESBURG (miningweekly.com) – Commodity market fundamentals are improving against a backdrop of better than expected demand and limited, if any, inventory build through the trough of the cycle, diversified mining and marketing company Glencore said on Thursday.

This comes against the background of the London-, Hong Kong- and Johannesburg-listed company reporting 18% higher earnings before interest, taxes, depreciation and amortisation (Ebitda) at $10.3-billion, 41% lower capital expenditure to $3.5-billion and operational unit cash cost performance in zinc at a negative –5c/lb.

The company, headed by CEO Ivan Glasenberg, also succeeded in managing down its full-year unit copper cost to 87c/lb, nickel to 265c/lb and thermal coal to $39/t with an $18/t margin. Continue Reading →

Mining giants ride copper’s price wave – by Scott Patterson (Dow Jones/The Australian – February 20, 2017)

http://www.theaustralian.com.au/

Copper bulls are looking smart — for now. Some of the world’s biggest mining companies, which have giant copper portfolios, are now poised to reap the rewards, with Anglo American, BHP Billiton and Glencore set to report full- or half-year earnings this week.

The industrial metal has surged more than 30 per cent in the past year, providing rocket fuel for companies that were staring into the abyss a year ago. Shares in Anglo and Glencore have more than tripled in the past 12 months. BHP, which has faced headwinds from a fatal tailings-dam disaster at one of its mining operations in Brazil, is up 62 per cent.

Rio Tinto, which is focusing more on its copper business, offered a preview of how miners’ fortunes have flipped to the upside when it reported earnings earlier this month. The Anglo-Australian mining giant said it returned to a profit in 2016 with $US4.62 billion in earnings, increased its dividend and announced a $US500 million share buyback. Continue Reading →

Glencore Buys Out Billionaire With $1 Billion Congo Mining Deal – by Franz Wild, Tom Wilson and Jesse Riseborough (Bloomberg News – February 14, 2017)

http://www.bloombergquint.com/

(Bloomberg) — Glencore Plc agreed to a $960 million deal that will boost ownership of two giant Congolese cobalt and copper mines, and sever its ties with controversial Israeli billionaire Dan Gertler.

For Glencore, the deal achieves two things: greater control of key assets at a time of booming copper and cobalt prices and a parting of ways from Gertler after his business in the Democratic Republic of Congo and relationship with President Joseph Kabila attracted scrutiny from the U.S. Department of Justice.

Glencore will pay Fleurette Group, a company owned by Gertler’s family trust, $534 million cash after all debts are paid, the company said in a statement on Monday. The assets include a 31 percent stake in Mutanda Mining, the world’s biggest cobalt mine, and a 10.3 percent holding in Katanga Mining Ltd., which operates a nearby copper and cobalt mine. Continue Reading →

Contract for Mine Millers ‘a tough one’ – by Jim Moodie (Sudbury Star – February 1, 2017)

http://www.thesudburystar.com/

Union representatives were confident a tentative deal with Glencore’s Sudbury Integrated Nickel Operations would be approved Tuesday as production and maintenance workers packed a conference room at the Radisson Hotel to place their votes.

And indeed it was, by a 79 per cent margain. The four-year deal, recommended by the bargaining committee for Mine Mill Local 598 Unifor, will see a two-percent wage increase over the length of the contract and a couple of tweaks to dental and drug plans, but no major concessions.

“This one was a tough one, I have to say,” said chief negotiator Richard Paquin, a veteran of four previous rounds of bargaining. “With the price of nickel hovering around $4.20 or $4.30 (per pound), versus what it was four years ago, around $8, it makes bargaining a lot different.” Continue Reading →