(Reuters) – Glencore Inc’s (GLEN.L) penchant for risk has long been mining industry lore, but the company is quickly expanding into a part of the world that would have been improbable just a few years ago: Minnesota.
The Swiss-based commodity trader took majority control last June of PolyMet Mining Corp (POM.TO), which is developing a mine in the Midwest state near the Canadian border estimated to hold a century’s worth of copper and nickel, critical to the development of electric vehicles.
It is the first time that Glencore has controlled a major mining project in the United States, where President Donald Trump has cut mining regulations and red tape in a bid to encourage domestic mining, a marked change from predecessor Barack Obama, who favored stricter oversight of the sector and slowed or halted several large mining projects.
Glencore for years has operated in regions considered high-risk, high-reward, making its shares a draw for some investors who saw the more conservative investing policies of peers, including BHP Group PLC (BHPB.L), as too tame.
But displeasure from institutional investors and the electric vehicle industry with cobalt mining techniques and dangerous conditions has risen. In June, at least 41 illegal miners were killed at Glencore’s Congo operations.
For the rest of this article: https://www.reuters.com/article/us-glencore-risk-focus/glencores-risk-appetite-dwindles-fueling-focus-on-safer-regions-idUSKCN1VQ0FQ