Archive | Glencore

Glencore shutters Quebec mines; operations in Sudbury continue – by Staff (Sudbury Star – March 27, 2020)

https://www.thesudburystar.com/

Glencore said Thursday its Raglan nickel and Matagami zinc operations in Quebec will be on care and maintenance for the next three weeks. Nickel from Raglan is shipped to Glencore’s Sudbury operations, where it is processed. Operations in Sudbury will continue to run.

“The government of Quebec has ordered all non-essential businesses to close in an attempt to slow the spread of COVID-19. Accordingly, our Raglan (nickel) and Matagami (zinc) operations in Quebec will be on care and maintenance for the next three weeks,” Glencore said in a statement. “In Ontario, the government has issued a similar decree, but mining has been designated an essential business and therefore our assets can continue to operate.”

The company said it is halting operations at its smaller mines around the world due to government restrictions to curb the spread of the coronavirus but added its larger operations were not materially impacted. Continue Reading →

King Coal Isn’t Dead Yet. Ask Glencore – by Clara Ferreira Marques (Bloomberg News – February 19, 2020)

https://finance.yahoo.com/

(Bloomberg Opinion) — Thermal coal has become a byword for the resource industry’s climate crimes. From BlackRock Inc. down, fund managers are reluctant to touch a mineral that releases more carbon dioxide than any other energy source. Large miners, from BHP Group to Anglo American Plc, are trying to dump it. Coal is also — for now at least — profitable.

It’s the unpalatable truth that explains why Glencore Plc, the world’s largest exporter of the black stuff, sticks with a dying fuel. Morals aside, the details suggest Chief Executive Officer Ivan Glasenberg and his team may well be right.

Tuesday’s full-year earnings from the trader and miner bore more than a few smudges. Lower prices for commodities like copper and cobalt took a heavy toll. Coal didn’t help, with the price of benchmark Newcastle coal down by over a third in 2019. Continue Reading →

Glencore plans leadership shakeup this year, says CEO – by Julia Payne and Zandi Shabalala (Reuters U.S. – February 18, 2020)

https://www.reuters.com/

LONDON (Reuters) – Glencore (GLEN.L) will make more changes to its front bench this year, Chief Executive Ivan Glasenberg said on Tuesday, as the world’s largest commodities trader hastens a transition to a new generation of leaders.

The London-listed miner has faced mounting pressure to change its leadership after multiple corruption and bribery investigations. Falling commodity prices and a large exposure to out-of-favour coal have added to challenges facing the firm, whose shares lost a fifth of their value last year.

“We want a smooth generation change. There will be a few senior management changes coming,” Glasenberg told reporters. “Once the new generation is in place and ready to move on, then it will also be the time for me to move on. Continue Reading →

Tesla in Talks to Buy Glencore Cobalt for Shanghai Car Plant – by Mark Burton and Thomas Biesheuvel (Bloomberg News – January 15, 2020)

https://ca.finance.yahoo.com/

(Bloomberg) — Glencore Plc is negotiating a long-term contract to ship cobalt to Tesla Inc.’s new electric-vehicle factory in Shanghai, according to people familiar with the matter.

A deal would help Tesla avoid a supply squeeze on the key battery metal as it pushes into the world’s largest car market, and mark a win for Glencore after a tough spell for its cobalt business.

Executives from both companies hammered out terms of the deal before an official ceremony to mark the first sales from the Shanghai plant earlier this month, said one of the people, who asked not to be identified discussing commercial negotiations. They declined to give details about the size and value of the supply deal. Continue Reading →

Glencore’s Glasenberg says successor could be in place next year – by Barbara Lewis and Eric Onstad (Reuters Canada – December 3, 2019)

https://ca.reuters.com/

LONDON (Reuters) – Glencore could announce a new chief executive next year once a new management team is in place, its current boss told an investor meeting on Tuesday as the commodities giant laid out its priorities for 2020.

The mining and trading company faces a challenging year as it contends with problems on multiple fronts, from a series of mine fatalities and climate politics to a continuing U.S. Department of Justice investigation and difficulties in Democratic Republic of Congo.

Speculation about Ivan Glasenberg’s departure has intensified after he said last year that he expected to retire in between three and five years. Asked for detail on a planned management transition, Glasenberg said there was “a good crop of people” but did not offer names. Continue Reading →

Global cobalt mine output growth forecast to slow in 2020: Antaike (Reuters U.S. – November 6, 2019)

https://www.reuters.com/

YICHANG, China (Reuters) – Global cobalt mine output will increase at a slower rate next year than in 2019, providing some support for price of the chemical used in batteries for electric vehicles, research house Antaike said on Wednesday.

Cobalt production in 2020 forecast to rise by 5,000 tonnes, Antaike nickel analyst Joy Kong said. That would be a 3.5% increase to the 143,600 tonnes produced this year which would be less than the 2019 expected growth rate of 6.3%, she said.

Antaike predicts standard grade cobalt prices in 2020 at around $18 per pound, or around $40,000 a tonne, up from an average of $16 to $16.50 per pound in 2019, as private mining declines, Kong said in a presentation at the China International Nickel and Cobalt Forum in Yichang. Continue Reading →

The men who would be king of Glencore move into the spotlight – by Jack Farchy (Bloomberg News – October 29, 2019)

https://www.bnnbloomberg.ca/

Contenders for the biggest job in commodity trading, the head of Glencore, will be on parade this week. Outgoing CEO Ivan Glasenberg wanted his successor to look “like me,” and the main aspirants do.

Glasenberg announced last December his plan to retire in the next few years, firing the starting gun on a closely watched race. The three most likely choices are Gary Nagle, Kenny Ives and Nico Paraskevas. They’re barely known outside Glencore, however, and as the global metals industry descends on London for LME Week, miners, traders and investors will be jostling to find out more.

The passage of the chief executive officer’s baton at Glencore is more than another corporate transition. The firm is the world’s largest commodity trader, dominating transactions in most industrial metals, including copper, zinc and aluminum. The CEO of the Swiss-based, London-listed company has had an outsized role in shaping the world of commodity trading since Glencore was founded by Marc Rich in 1974. Continue Reading →

Cobalt market to avoid shortage despite Congo mine closure: Nornickel – by Anastasia Lyrchikova and Polina Devitt (Reuters U.S. – October 29, 2019)

https://www.reuters.com/

MOSCOW (Reuters) – Cobalt supply will remain robust despite a price slide that has already led to the closure of a major mine, Russia’s Norilsk Nickel said, as most is produced as a byproduct of more buoyant metals like nickel and copper.

Prices of the battery metal surged in 2017 and 2018 on expectations for an electric vehicle revolution, but have fallen this year due to excessive supply and the impact of the U.S.-China trade war.

They are now down 60% from their spring 2018 peak. In August global mining and trade giant Glencore said it would shutter its Mutanda mine in the Democratic Republic of Congo from year-end for two years due to low cobalt prices. Continue Reading →

The world beats a path to Sudbury: International delegations dig the Nickel City for its mining expertise and regreening story – by Len Gillis (Northern Ontario Business – October 16, 2019)

https://www.northernontariobusiness.com/

The City of Greater Sudbury has rolled out the red carpet no less than 10 times this year for international trade delegations coming to see the city’s expertise in mining and hear the story of the environmental remediation of its once-devastated landscape.

The payoff has been low-key but still very significant, according to organizers who have worked to entice these groups by teaming up with government, the mining and supply companies, and post-secondary educators.

“The key word is ‘partnerships’ because these are happening from many different partners from all levels of government,” said Scott Rennie, a business development officer with the city, who is also the project manager for Northern Ontario Exports. Continue Reading →

Glencore’s risk appetite dwindles, fueling focus on safer regions – by Ernest Scheyder and Barbara Lewis (Reuters U.S. – September 5, 2019)

https://www.reuters.com/

(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. Continue Reading →

Chinese demand for ‘green’ metals increasing ‘exceptionally fast’ – Glencore – by Martin Creamer (MiningWeekly.com – August 7, 2019)

https://m.miningweekly.com/

JOHANNESBURG (miningweekly.com) – The demand for environmentally protective ‘green’ metals is increasing exceptionally fast, boosted by a 59% increase in electric vehicle production in China, Glencore CEO Ivan Glasenberg said on Wednesday.

In response to Mining Weekly Online during a post-results conference call, Glasenberg reiterated that Glencore had the right range of metals for which demand was poised to rise as the world decarbonised. But while demand growth remained positive, supply was low, with easily accessible high-quality resources running out.

The London- and Johannesburg-listed Glencore is a producer and a marketer of metals including copper, nickel and cobalt, which are all well positioned for future outcomes, despite the cobalt price being down currently. Continue Reading →

Cobalt, Africa setbacks shrink Glencore’s first-half profit – by Yadarisa Shabong and Barbara Lewis (Reuters Canada – August 7, 2019)

https://ca.reuters.com/

LONDON (Reuters) – Glencore (GLEN.L) reported a 32% drop in first-half core profit on Wednesday, sending its shares to their lowest since late 2016, while a fall in cobalt prices prompted it to halt output for two years at the world’s biggest mine of the battery material.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were $5.58 billion for the six months ended June 30 against $8.18 billion a year earlier.

The company’s shares were trading nearly 2% lower by 1139 GMT, recovering slightly from losses that took them to their weakest since October 2016. Chief Executive Ivan Glasenberg blamed “a challenging economic backdrop for our commodity mix” and setbacks during the ramp-up of operations in Africa. Continue Reading →

Glencore Plans to Shut Giant Cobalt and Copper Mine in Congo – by Thomas Biesheuvel and William Clowes (Bloomberg News – August 6, 2019)

https://www.bloomberg.com/

Glencore Plc is planning to halt production at one of the world’s biggest cobalt mines after prices for the battery metal collapsed and costs at the project increased, according to a person familiar with the situation.

The announcement that Glencore will close its Mutanda mine in the Democratic Republic of Congo is expected to come as the company lays out an overhaul of its key African copper and cobalt business when it releases first-half results on Wednesday.

It would be another setback for Glencore, which has been dogged by operational problems, legal challenges and a rift with Congo’s government over a new mining code. Continue Reading →

Glencore mine could be forced to sell coal only to Paris agreement signatories – by Michael McGowan (The Guardian – August 6, 2019)

https://www.theguardian.com/

Mining company Glencore could be forced to only sell coal from a new mine in New South Wales to signatories of the Paris climate agreement, under a proposal floated by the state’s independent planning commission.

Opposed by Glencore and its joint-venture partner in the mine, Peabody, the condition would see approval of the Wambo open-cut coalmine in the state’s Hunter Valley linked to the countries it exports to.

But the proposal has prompted a mixed response from environment groups. While some have argued linking the coal mine’s approval to global emissions is positive, others say merely restricting exports to signatories to the Paris agreement will not have any meaningful impact because virtually every country has signed up to the agreement. Continue Reading →

Glencore feels pain of Africa risk, cobalt price fall – by Barbara Lewis (Reuters U.S. – July 31, 2019)

https://www.reuters.com/

LONDON (Reuters) – Glencore said on Wednesday it faced a $350 million hit after cobalt prices halved and has begun an overhaul of its under-performing Africa business, which it will explain next week with output revisions in Democratic Republic of Congo.

First-half copper production was 5% lower than last year, while cobalt output rose 28%. Zinc and coal output rose 8% and 10% respectively and nickel dropped 11% versus the same time last year because of maintenance.

London-listed Glencore’s exposure to risk in Democratic Republic of Congo and Zambia has weighed on the company’s share price, which has fallen while those of its diversified mining peers have risen. Continue Reading →