Archive | Glencore

How Congo faced down some of the world’s biggest mining firms – by Aaron Ross (Reuters U.K. – March 15, 2018)

DAKAR (Reuters) – In an ornate room in Democratic Republic of Congo’s presidential palace last week, some of global mining’s most powerful men faced off against government officials over proposed changes to the country’s mining code.

Facing the officials, including President Joseph Kabila, the executives at times threatened to pursue arbitration or close mines if the government went ahead with changes including royalty increases, according to one of the president’s top advisers, Barnabe Kikaya bin Karubi, who attended the meeting.

But there was no mistaking the sense of defeat as executives from Glencore, Randgold, Ivanhoe and other firms descended the red carpeted stairs after six hours to accept before the media a mining code that hikes taxes and removes exemptions for cobalt and other minerals. Continue Reading →

Vale, Glencore approve Sudbury projects – by Jim Moodie (Sudbury Star – March 13, 2018)

Vale and Glencore are digging deep to dig deep. Each company is committing about $700 million to develop new mines and will be using cutting-edge, automated machines to reach the ore located more than two kilometres below the surface.

Vale is going ahead with its Copper Cliff Deep project, which includes refurbishing the south shaft at the Copper Cliff complex and eventual access to an ore body beneath Kelly Lake. The first phase is pegged at $760 million.

Glencore has freed up about $900 million for Onaping Depth, a new project near Craig Mine that will burrow 2.6 km into the earth. Jean-Charles Cachon, a professor in marketing and management at Laurentian University, said the price tags for these projects are typical of the industry. Continue Reading →

Vale says no new jobs to come with $760M Copper Cliff mine expansion (CBC News Sudbury – March 08, 2018)

$760 million to expand Copper Cliff Mine over next 4 years

Vale announced this week that it’s making a big investment in Sudbury, while at the same looking to trim millions from its global nickel operations. The company is spending $760 million dollars over the next four years to expand Copper Cliff Mine.

The project, which some have called Copper Cliff Deep, will see the area between the north and south shafts mined, while at the same time giving the company future access to an ore body beneath Kelly Lake.

But Vale’s vice-president of corporate affairs and communications Cory McPhee says not to expect a round of new hiring. “It’s not necessarily creating new jobs as much as it is sustaining jobs that are existing today. Continue Reading →

The Sudbury recipe: How the city came to be a global centre of mining innovation (Canadian Mining Journal – February 2018)

Sudbury has a long history as an important mining centre in Canada, with the first of many nickel-copper mines, Murray, built in the late 1880s.

But over the past 15 years, the city has become known as a mining innovation hub, with a dense and extensive network of service and supply companies and research institutions whose influence stretches well beyond northern Ontario.

The feat is all the more impressive considering the price of nickel – the commodity that was most responsible for Sudbury’s rise as a mining centre – is far from booming. (It was US$6.21 per lb. at press time.) Ian Wood, director of economic development at the city of Greater Sudbury, says that the reason for the strength of the city’s mining service and supply sector stems from the needs of thetwo dominant nickel giants in the area – Glencore (formerly Falconbridge) and Vale (formerly Inco). Continue Reading →

Glencore, Vale approve C1.8 billion in mine development spending for Sudbury – by Norm Tollinsky (Sudbury Mining Solutions Journal – March 1, 2018)

Copper Cliff and Onaping Depth projects underway

Vale and Glencore’s Sudbury Integrated Nickel Operations have received board approval for major mine development projects in the Sudbury Basin.

Following several delays attributable to low commodity prices, Vale is proceeding with a C$760 million phase one development of its Copper Cliff Deep project, while Glencore is moving ahead with a C$900 million development of Onaping Depth.

Both projects are being undertaken to replace declining production from established mines.

“I don’t think it’s a surprise to anyone that most of our mines are facing declining production profiles,” said Vale’s Dave Stefanuto, vice-president, capital projects for the North Atlantic. “We need to find replacement volumes of ore, so we’re starting to focus more on what we can do to start supplementing these declining orebodies. In the last few years, we spent a lot of time focusing on our surface plants, including the $1 billion Clean AER project. We’ve invested enough in our surface facilities. Now we have to feed them because they’re no good if they’re running empty.” Continue Reading →

Rusal quest for value to dent Glencore’s aluminum clout – by Dmitry Zhdannikov and Polina Devitt (Reuters U.S. – February 27, 2018)

LONDON/MOSCOW (Reuters) – Mining giant Glencore’s deal to buy aluminum from Rusal will be renewed from 2019, but the tonnage is likely to be much lower as the Russian producer taps into growing demand for value-added products, two sources close to the matter said.

Unless it sources from additional suppliers, the reduction in volume will weaken the leading position held for years by Swiss-based Glencore in the global aluminum market.

Rusal, controlled by billionaire Oleg Deripaska and co-owned by Glencore, is expected to cut the volume in any new deal by 25-50 percent from the 14.5 million tonnes that covers the seven years from 2012 to 2018. Continue Reading →

COLUMN-For coal miners, it’s time to exit or get rich – by Clyde Russell (Reuters U.S. – February 25, 2018)

LAUNCESTON, Australia, Feb 26 – It seems coal miners are adopting one of two disparate strategies, either exit the business in a highly visible way to buff up your climate credentials, or sit tight, keep as quiet as possible and rake in the cash.

An example of the public exit from the business is South32 , the Perth-based miner spun out of BHP Billiton which is in the process of selling out of its thermal coal assets in South Africa.

Mike Fraser, South32’s president and chief operating office for South Africa, told Reuters earlier this month that the company was aiming to sell its coal assets because it “did not believe in the commodity.” It would also be better if the coal mines were majority-owned by black investors, Fraser said. Continue Reading →

Glencore records $14.76 billion profit (Bloomberg News/Sudbury Star wire service – February 22, 2018)

Glencore Plc surprised investors with a bigger dividend on the back of surging profit and commodity prices, but is still stockpiling cash as dry powder for future deals.

“We’re generating $10 billion of free cash flow on current commodity prices,” said Chief Executive Officer Ivan Glasenberg. “There is room if and when we want to do any acquisitions.”

Glencore nearly tripled its dividend payout to $2.9 billion and reported full-year results largely in line with expectations. The results leave Glasenberg well positioned to continue doing what he knows best — deals. While competitors such as Rio Tinto Group shied away from dealmaking last year, Glencore announced acquisitions worth more than $4 billion in copper, oil, zinc and coal. Continue Reading →

MARVEL TO BEHOLD: Black Panther’s Lesson for Cobalt – by David Fickling (Bloomberg News – February 21, 2018)

The battery material used in electric cars is no vibranium.

An isolated African nation possesses unique deposits of a rare and valuable metal. Its leaders aim to nationalize mineral wealth, while a white South African trader seeks a more vigorous export market. Inevitably, resources bring tragedy as well as triumph. With great power comes great responsibility.

If that sounds like the plot of the current box-office smash Black Panther, it has a real-world echo. The Democratic Republic of Congo has an endowment of cobalt scarcely less outsized than the fictional Wakanda’s reserves of vibranium.

With the rise of electric vehicles forecast to increase demand for the battery material more than fourfold and cobalt prices tripling over the past two years, the paralysed, election-dodging government in Kinshasa is weighing a 150 percent increase in mining royalties. Continue Reading →

Glencore hails strongest full-year results after commodity rally – by Barbara Lewis and Arathy S Nair (Reuters U.K. – February 21, 2018)

LONDON/BENGALURU (Reuters) – Glencore Chief Executive Ivan Glasenberg hailed the group’s results as its “strongest on record” on Wednesday, bolstered by a recovery on commodity markets and said it had the assets to meet future demand including from electric vehicles.

In line with other miners reporting this month, Glasenberg said there were “emerging inflationary pressures,” but they had been offset so far by strong prices for byproducts, such as cobalt, and Glencore was able to contain costs.

Glencore’s shares rose around 4 percent by 1045 GMT, outperforming the broader index. After outstripping its rivals last year, Glencore’s share price has lagged in 2018, hit by concerns about instability in Democratic Republic of Congo where it has major operations. Continue Reading →

Apple in Talks to Buy Cobalt Directly From Miners – by Jack Farchy and Mark Gurman (Bloomberg News – February 21, 2018)

Apple Inc. is in talks to buy long-term supplies of cobalt directly from miners for the first time, according to people familiar with the matter, seeking to ensure it will have enough of the key battery ingredient amid industry fears of a shortage driven by the electric vehicle boom.

The iPhone maker is one of the world’s largest end users of cobalt for the batteries in its gadgets, but until now it has left the business of buying the metal to the companies that make its batteries.

The talks show that the tech giant is keen to ensure that cobalt supplies for its iPhone and iPad batteries are sufficient, with the rapid growth in battery demand for electric vehicles threatening to create a shortage of the raw material. About a quarter of global cobalt production is used in smartphones. Continue Reading →

As mining investors push caution, Glencore differs from rivals – by Susan Taylor and Melanie Burton (Reuters U.S. – February 16, 2018)

TORONTO/MELBOURNE (Reuters) – As shareholders push the world’s cash-rich miners to maintain lush dividends and make the most of existing assets, Glencore is taking a slightly different tactic that positions it for shrewd acquisitions.

Like other big rivals, Glencore is expected to lift its dividend payout when it reports results next week, but the Swiss miner and trader is also “open for business” when it comes to buying mines or companies, its chief financial officer said in December.

“Glencore’s deal-making is now very strategic. They’re trying to find businesses with the highest margin and get into sectors where they will have a competitive advantage,” said David Neuhauser, managing director of Livermore Partners, which holds Glencore shares. Continue Reading →

Glencore flags sharp rise in cobalt production – by Neil Hume (Financial Times -January 31, 2018)

Cobalt prices have soared amid rising demand for batteries to power electric vehicles

Glencore, the Swiss miner and commodity trader, has flagged a big increase in cobalt production as one of its biggest copper mines restarts production.

The London-listed group said it expected to produce around 39,000 tonnes of the metal this year, up from 27,400 tonnes last year, as its Katanga mine in the Democratic Republic of Congo come back on stream following a big investment programme.

The mine was closed in 2015 so that Glencore could upgrade its processing facilities. The company estimates it could produce as much as 20,000 tonnes of cobalt a year by 2019. Continue Reading →

Asia powers demand for thermal coal – by Neil Hume (Financial Times – January 8, 2018)

Price of fossil fuel used for electricity reaches highest level since late 2016

Thermal coal, the least loved major commodity, has jumped to its highest level since late 2016 as strong manufacturing activity in Asia and appetite from China drives demand.

Thermal coal is burnt to generate electricity, and is a big source of income for miners such as Glencore, Whitehaven and Yancoal, which produce material for the seaborne market.

While the fossil fuel is being phased out in Europe on environmental grounds, it still accounts for about 40 per cent of energy consumption in emerging markets. Continue Reading →

Newsmakers of 2017: Glencore CEO, Ivan Glasenberg – by David McKay (Miningmx – December 28, 2017)

IN December, Ivan Glasenberg’s Glencore appointed former South African Reserve Bank governor, and ANC stalwart, Gill Marcus, to its board fuelling speculation the group might be turning its attention to future South African opportunities.

The likelihood is this appointment adds to board diversity and its brains trust, but as far as common-and-garden tittle-tattle goes, why not speculate further on Glencore’s apparently unfettered ambition to extend its production and trading base? Without doubt, the firm has been the most bullish of the world’s diversified miners in respect of where the market is heading – a view predicated on its recent transactional history.

The emergence of ‘electric vehicles’ as a new major source for industrial metal demand has also pepped up spirits, especially Glasenberg – although one is duty-bound to question why he is making such a big fuss about it now considering it’s probably been in Glencore’s folder of cracking strategy ideas for quite a while. Continue Reading →