Nunavik nickel firm wants to nearly double Raglan’s lifespan (Nunatsiaq News – July 27, 2015)

http://www.nunatsiaqonline.ca/

Glencore proposing to dig four new underground mines at Raglan

The operators of Nunavik’s Raglan nickel mine hope to expand its lifespan well beyond 2019, with the addition of five new underground mines across the region’s nickel belt.

Glencore, the corporation that operates Raglan and its four current underground mines, has submitted the project to the Kativik Environmental Quality Commission, which reviews the social and environmental impact of development in the region.

With current operations scheduled to wind down by 2019, Glencore completed a scoping study last year, the company said, which confirmed viable nickel deposits on the eastern half of the Raglan property. The first phase of the expansion would include two underground mines, called Mine 14 and Donaldson, which would operate from 2019 to 2032.

The exploitation of three new underground mines, Mine 8, Boundary and Boundary West, could extend production from 2023 to 2039, Glencore said in a preliminary information document submitted to the KEQC in 2014.

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Mine Games: Clash of the Commodity Kingpins – by Jeremy Kahn (Bloomberg News – July 14 2015)

http://www.bloomberg.com/

Glencore boss Ivan Glasenberg takes on Rio Tinto’s Sam Walsh—and an entire industry.

Sam Walsh, the mild-mannered Australian CEO of London-based mining giant Rio Tinto Group, insists he remains on cordial terms with Ivan Glasenberg, the brash South African who leads the global mining and commodities trading firm Glencore. Sure, Glasenberg approached Walsh’s boss—Rio Tinto Chairman Jandu Plessis—in July 2014 and proposed a merger that would likely have cost Walsh his job.

Sure, Glasenberg doesn’t miss a chance to tell the world that Walsh and his fellow Big Mining executives don’t comprehend the basic economics of supply and demand. Still, Walsh told the Times of London in December, “We’re big boys, and this is business. It’s not personal.”

Except it kind of is. Glasenberg’s argument is that Walsh and his fellow global mining executives “screwed up”—the phrase the commodities tycoon used in 2013—by flooding the world with minerals. Take iron ore, which is responsible for almost half of Rio Tinto’s revenue and more than two-thirds of its pretax profit.

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Coal bid sets up clash of mining heavyweights – by Neil Hume (Financial Times – July 1, 2015)

http://www.ft.com/intl/companies/mining

Ivan Glasenberg and Sir Mick Davies set to go head-to-head over the Hunter Valley

It is a tantalising prospect for deal junkies: Sir Mick Davis going head-to-head with his arch rival Ivan Glasenberg in a takeover fight.

And one that has become a possibility with news that X2 Resources, the private equity vehicle set up by Sir Mick, is in discussions with Rio Tinto about a possible bid for its Hunter Valley coal business in Australia.

There is no love lost between Sir Mick and Mr Glasenberg, two of the biggest names in the mining world. Their relationship soured three years ago when Glencore reworked its friendly merger with Xstrata into a full-blown takeover that ousted Sir Mick as chief executive.

Since then Sir Mick has come back leaner and, arguably, hungrier. He’s raised $5.6bn from investors to buy mining assets for X2, with additional debt backing from at least one leading bank. His notoriously large frame, which inspired part of his nickname, has slimmed down. But standing between Sir Mick and his first deal is the hyper-competitive man who removed him from his last job.

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Iron ore expansions drove down price: Glencore – by Matt Chambers (The Australian – June 5, 2015)

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

The most senior local executive at Swiss trading and mining giant Glencore has waded into the iron ore debate, saying rapid Australian expansions have driven down prices and cost the nation tax, royalties and superannuation dollars.

Speaking in Melbourne yesterday, Glencore coal mining chief Peter Freyberg said boomtime expansions that had seen Australian iron ore production surge and cost more than $US50 billion ($64bn) in development spending from Rio Tinto, BHP Billiton and Fortescue Metals, had been a negative exercise.

“The numbers speak for themselves — if you go back a couple of years, there were 500 million tonnes of (annual) export at $US100 a tonne,” Mr Freyberg said.

“That’s versus 700 million tonnes of exports today at $US60, so there’s a whole lot of revenue that’s gone missing following a bunch of investment.

“At the end of the day, (with respect to) the returns to Australia, into superannuation funds, through royalties, through taxes, it’s been a negative exercise.”

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We’re not cannibals:Glencore – by Greg Roberts (The West Australian – June 4, 2015)

https://au.news.yahoo.com/thewest/

Global miner Glencore has taken a swipe at Australia’s mining giants, saying their mass iron ore and coal expansions had “cannibalised” revenue and hurt the economy.

Glencore itself had been the first to take the responsible path of stopping its own coal expansions, which was good for the Australian mining industry, coal chief Peter Freyberg told a Melbourne Mining Club lunch.

His comments came a day after US coal giant Peabody Energy said it would axe up to 210 jobs and cut production by nearly half at a north Queensland mine as it struggled with falling prices.

Glencore announced it would cut 80 jobs and production from its north Queensland Collinsville coal mine last week.

Mr Freyberg said Glencore was exercising market discipline, cutting mining output, combining some of its NSW coal operations with Peabody’s and putting its $7 billion Queensland Wandoan coal mine project on hold.

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Coal Giants Left Unscathed by Growing Divestment Campaign – by Thomas Biesheuvel and Jesse Riseborough (Bloomberg News – June 3, 2015)

http://www.bloomberg.com/

The biggest names in mining have so far found themselves immune to a rapidly expanding campaign that’s seeking to curb the use of the most polluting fossil fuel.

From Norway’s $900 billion sovereign wealth fund to France’s biggest insurer and the Church of England, investors are starting to turn the screw on coal producers by selling down their holdings.

The criteria they use to select candidates for divestment exempts some of the biggest producers, however. That’s because those companies are large, diversified miners and only get a small part of their revenue from coal.

Dodging the divestment bullet, at least for now, are companies such as Glencore Plc, the world’s biggest exporter of coal used in power stations, BHP Billiton Ltd., Rio Tinto Group and Anglo American Plc. Between them they mine more than 350 million tons, about one third of the world’s coal trade.

“There’s a view that if they stop investing in it, or take a stance, that coal will go away,” said Mick Buffier, chairman of the World Coal Association and also an executive at Glencore. “Our view is different. Coal will continue to be needed. It’s going to be used by these developing nations. ”

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Gloomy Mining Chiefs See Copper-Tinted Light at End of Tunnel – by Firat Kayakiran, Jesse Riseborough and Agnieszka De Sousa (Bloomberg News – May 21, 2015)

http://www.bloomberg.com/

The world’s biggest mining companies haven’t agreed on much lately as they argue about how to deal with a glut of iron ore and coal. When the subject turns to copper, however, they’re on the same wavelength.

Executives of BHP Billiton Ltd., Antofagasta Plc, Rio Tinto Group, Freeport-McMoRan Inc. and Glencore Plc all pointed to copper in comments this month as the one commodity not dogged by oversupply. Demand is proving resilient, according to analysts who cite China’s response to a slowdown in economic growth by sanctioning a number of previously delayed infrastructure projects.

“If you’re looking for a single structural long-term bullish argument for owning a commodity, just look at copper,” said Clive Burstow, who helps manage $44 billion at Baring Asset Management in London.

In an interview last week, the head of the world’s largest mining company painted a gloomy picture for the industry. BHP’s Andrew Mackenzie said that in all the minerals markets in which it operates, any demand increase can too “easily” be met by expanding existing mines. One exception he sees is copper.

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It seems Sudbury really is the centre of the mining universe – by Staff (Northern Ontario Business – May 14, 2015)

http://www.northernlife.ca/

Greater Sudbury was represented at an awards gala held by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) in Montreal on May 11.

The annual event celebrates leaders in the Canadian mining industry and their many achievements over past years.

Northern Ontario winners include Christine Bertoli, recipient of the CIM-Bedford Canadian Young Mining Leaders Awards.

Based in Lively, Bertoli is the chief mine engineer of Nickel Rim South Mine for Sudbury Integrated Nickel Operations (Glencore). The award recognizes workers 39 years of age or under for exceptional achievement, as well as their potential for future leadership in various sectors of mining.

Sue Tessier of Val Caron was recognized with the CIM Community Service Award. Tessier, who enjoyed a 34-year career with Inco/Vale, is now retired and volunteers her time with a number of organizations, including the CIM Sudbury Branch, GO Eng Girl, and the Sudbury Regional Science Fair. This award recognizes unsung heroes for their contributions to the mining industry.

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Glencore, Barrick Gold Looking to Sell Tanzania Nickel Project – by Alistair MacDonald and Scott Patterson (Wall Street Journal – May 13, 2015)

http://www.wsj.com/

While Kabanga’s ore is of a high grade, a sale may be difficult given the size of the field of potential buyers

Mining giants Glencore PLC and Barrick Gold Corp. are looking to sell a joint nickel development project in Tanzania, according to people familiar with the matter, in a sales process that may struggle amid volatility in the pricing of this metal.

The two mining giants each own half of the Kabanga nickel project in northwest Tanzania and have been touting the property for several months, according to the people familiar with the matter. Neither company has hired a bank to sell the property, according to two of these people.

The asset is one of many that have been put up for sale in recent years as miners rejig their portfolios and raise money to mend battered balance sheets.

Glencore Chief Executive Ivan Glasenberg has repeatedly said he is focused on purchasing developed mines and that he isn’t interested in so-called greenfield projects, which require hefty cash outlays.

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Glencore CEO says rivals’ strategy tipping mining sector into crisis – by Silvia Antonioli (Reuters U.K. – May 12, 2015)

http://uk.reuters.com/

LONDON – The head of mining and commodity trading giant Glencore said on Tuesday the strategy of rival companies to oversupply the market regardless of demand had hit the mining sector’s credibility and tipped it into a confidence crisis.

Chief Executive Ivan Glasenberg has criticised competitors such as Anglo-Australian BHP Billiton (BHP.AX) (BLT.L) and Rio Tinto (RIO.L) (RIO.AX) several times for flooding the market with new, low-cost, iron ore supply which critics says has sent prices into a downward spiral.

“The mining sector is suffering a crisis of confidence,” he said in a presentation at an investor conference in Barcelona. “Oversupplying markets regardless of demand is damaging the credibility of the industry,”

He said mining had been the worst performing sector over the last twelve months, with commodity prices, share values and credit ratings all impacted. Investment flow has also weakened and was now about $60 billion below its 2012 peak, when the commodity supercycle turned sour, Glasenberg said.

Iron ore, oil, nickel and thermal coal were the hardest hit commodities in the last year.

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Glencore blames rivals for creating metals glut – by Silvia Antonioli (Reuters U.K. – May 7, 2015)

http://uk.reuters.com/

LONDON – The head of global mining and trading company Glencore (GLEN.L) said rivals were to blame for an oversupply of metals which depressed its share price.

Despite a partial recovery in the last few months, Glencore’s shares are down about 6 percent from a year ago, under pressure from a rout in prices for most of the commodities it produces and trades.

“Unfortunately our competitors in the world have produced more supply than demand and commodity prices are down for that reason,” Glasenberg said at the company’s annual meeting.

“I am doing my level best to convince my competitors we should understand the words demand and supply,” he added in response to a question from an investor about the share price.

Glasenberg has criticised rivals such as Rio Tinto (RIO.L) and BHP Billiton (BLT.L) (BHP.AX) at various times, blaming them for oversupplying the market, particularly in iron ore, a commodity Glencore has little exposure to.

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Kidd Mine, Minister Gravelle announce legacy fund – by Alan S. Hale (Timmins Daily Press – May 5, 2015)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Kidd Operations is looking to maintain its practice of supporting local non-profit organizations beyond the year 2021, when their mining operations in Timmins are set to come to an end.

On Monday, the mining company announced that it and the Ontario Trillium Foundation will spend $500,000 each over the next six years to create a $1-million “legacy” endowment fund. After the mine is closed, the fund will be managed by the foundation and will be distributed as grants by a volunteer board.

According to Kidd Operations’ general manager, Tom Semadeni, the deal to create the new fund with the government-run foundation was two years in the making.

“We realized that Kidd has had a very significant involvement in the community, and we’re aware that when we leave there will be a potential void. So we want to provide a lasting legacy, where we could still provide support to the community,” said Semadeni. “We worked together with the Trillium Foundation on what would be a reasonable sized endowment that could be managed going forward.

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UPDATE 2-Glencore disappoints with weak first-quarter metals output – by Silvia Antonioli (Reuters U.K. – May 5, 2015)

http://uk.reuters.com/

LONDON, May 5 (Reuters) – Miner and commodity trader Glencore reported weaker than expected first quarter output at some of its mining assets, with production of its top earner, copper, down 9 percent due to lower grades at two South American mines.

Glencore has a bigger exposure to base metals than iron ore compared with its large rivals. The company has a large commodity trading division, in addition to its mining and oil assets.

Bernstein analyst Paul Gait called the production figures “disappointing”, with base metals and coal lagging expectations.

Copper output was 350,700 tonnes in the first quarter, below most analysts forecasts. The fall was due to lower grades at the Alumbrera mine in Argentina and the Antamina mine in Peru, and to a maintenance shutdown at Collahuasi, in Chile.

Coal production rose 4 percent in the first quarter to 35.6 million tonnes, thanks to the commissioning of two new thermal coal projects in South Africa.

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Biggest Coal Exporter Says Climate Change Won’t Strand Assets – by Jesse Riseborough (Bloomberg News – April 28, 2015)

http://www.bloomberg.com/

Glencore Plc, the top exporter of coal used in power stations, expects efforts to curb climate change by keeping its fossil-fuel reserves in the ground to fail in the face of world energy demand.

Shareholders won’t be “prevented from realizing the full value of Glencore’s fossil fuel assets,” Ivan Glasenberg, 58, Glencore’s billionaire chief executive officer, said Tuesday.

His comments are a snub to a growing campaign that wants investors to shun fossil fuels that cause climate change. The world can’t safely extract all its oil and coal reserves, meaning some will end up as worthless stranded assets, campaigners say. Investors from Stanford University to the British Medical Association plan to cut fossil fuel holdings.

Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell Plc are among those defending their interests with the argument that the only way the world can feed its appetite for cheap, reliable energy is by burning fossil fuels. Coal supplies the world with about 30 percent of its main energy needs and more than 40 percent of its electricity, according to the World Coal Association. Global coal output reached a record 7.8 billion metric tons in 2013.

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Australia’s Hockey vs Glencore’s Glasenberg – by Kip Keen (Mineweb.com – April 9, 2015)

http://www.mineweb.com/

Treasurer’s tough comments on Glencore-Rio Tinto merger could be read as a stern warning by Australia’s government.

Taken at face value Australia’s treasurer Joe Hockey has declared Rio Tinto untouchable. As widely reported now by media, Hockey is quoted as saying by numerous sources at a recent meeting including mining executives that there was “no way” he’d let Glencore merge with Rio Tinto “on his watch”. Assuming the reports are accurate, the question becomes, is Hockey serious?

If he is, then Australia truly has a curious way of dealing with possible foreign takeovers. Yes, it’s ultimately up to the treasurer (a political position equivalent to finance minister in other parliaments) to decide on big deals like this where the “national interest”, e.g. major tax revenue, is at stake.

But then the decision is usually taken as part of, or at least after, some due diligence. Australia’s Foreign Investment Review Board (FIRB) usually makes unbinding recommendations on such deals to the treasurer. Then the treasurer decides, however he/she and his/her government want.

Now, if Hockey truly means “no way” on another (hypothetical) attempt by Glencore to merge with Rio Tinto, he would effectively be turning the whole process on its head.

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