Archive | Glencore

Glencore shares under cloud after U.S demands Congo documents in probe – by Zandi Shabalala (Reuters U.S. – July 12, 2018)

https://www.reuters.com/

LONDON (Reuters) – A U.S. demand for documents related to Glencore’s (GLEN.L) assets in Democratic Republic of Congo (DRC) as part of a corruption probe has rattled investors and is likely to weigh on the miner’s performance until there is more clarity on the case.

Glencore said it had received a subpoena from the U.S. Department of Justice dated July 2 requesting documents for its Congo business over compliance with the U.S. Foreign Corrupt Practices Act and rules against money laundering.

The Switzerland-based company, which said documents for Venezuela and Nigeria were also requested, provided few details, although it said it would cooperate with the authorities. Continue Reading →

How Glencore’s risky dealings in the Democratic Republic of the Congo may backfire – by Eric Reguly (Globe and Mail – July 6, 2018)

https://www.theglobeandmail.com/

Glencore took a balanced approach on its way to becoming the world’s biggest commodities trader and one of the top mining houses. It dealt with the sinners as well as the saints.

Sinners are everywhere in the mining industry, of course, and are all but unavoidable if you want to get deals done in regulatory-lite zones, notably Africa, which is blessed with endless resources – cobalt, copper, diamonds, oil – waiting to be tapped.

Glencore took big risks in Africa, one of which appears to have been its association with Dan Gertler, 44, the Israeli billionaire and commodities tycoon who has worked the mining game in Democratic Republic of the Congo (DRC) for about 20 years, to great success. Continue Reading →

Glencore subpoenaed by U.S. over compliance with corruption laws – by Scott Patterson (Wall Street Journal/Toronto Star – July 4, 2018)

https://www.thestar.com/wsj/

LONDON—Glencore PLC said it received a subpoena from U.S. authorities related to compliance with American corruption and money-laundering laws at its operations in Congo, Nigeria and Venezuela — a move that significantly ratchets up government scrutiny of the mining and trading giant.

The early Tuesday disclosure rattled investors. Glencore shares fell more than 12% in early London trading. Glencore said the U.S. Justice Department issued a subpoena demanding it hand over documents and other records related to compliance with the U.S. Foreign Corrupt Practices Act and U.S. money laundering statutes.

FCPA is an antibribery law that forbids the bribing of foreign officials to win, or keep, business. Glencore said it was reviewing the request and would provide further details “as appropriate.” A spokesman declined to comment further. Continue Reading →

Glencore Bets on South Africa as Ramaphosa Promises Revival – by Thomas Wilson and Paul Burkhardt (Bloomberg News – June 26, 2018)

https://www.bloomberg.com/

Glencore Plc has set its ambitions on expanding in South Africa, the homeland of its chief Ivan Glasenberg.

As the company’s former business partner and new President Cyril Ramaphosa promises an economic recovery, Glencore is reaping profits from coal and chrome assets as prices rise. The company announced in October a $1 billion deal to buy Chevron Corp.’s oil refining and fuel service stations in South Africa and considered a bid for the Optimum coal mine.

The oil bid “was a pretty strong vote of confidence in the South African environment,” said Martin Kingston, the chief executive officer of N.M. Rothschild & Sons Ltd. in South Africa, which is advising Chevron on the sale. “Glencore understands the environment very well. They are effective behind the scenes and they have their finger on the pulse.” Continue Reading →

1984 Falconbridge tragedy still echoes for Sudbury residents, mining community – by Benjamin Aubé (CBC News Sudbury – June 20, 2018)

http://www.cbc.ca/news/canada/sudbury/

Disaster led to 1986 inquiry into mine ground control and emergency preparedness

June 20, 1984, is a day that still resonates in the minds of many Sudbury residents and throughout the mining community. About 200 workers were on shift at Falconbridge Mine that morning. Four of them never got out.

At 10:12 a.m., a seismic event that registered a 3.5 on the Richter scale struck the mine, causing a major rock fall and trapping many of the miners.

Despite rescue attempts over the next several days, Sulo Korpela, Richard Chenier, Daniel Lavallee and Wayne St. Michel each lost their lives. On Wednesday, an annual service commemorating the 34-year anniversary of the tragedy was held at the Mine Mill 598 Unifor Campground at Lake Richard. Continue Reading →

US risked Chinese battery monopoly had Gertler dispute escalated – by David McKay (MiningMx.com – June 19, 2018)

https://www.miningmx.com/

GLENCORE’S workaround the US sanctions placed on Dan Gertler, the Congo’s mining tycoon, was a remarkable piece of pragmatism on behalf of the Swiss miner and minerals trader, but it may have also been informed by a broader concern.

The concern is that in failing to settle the matter, the assets from which Gertler was demanding the resumption of royalties – the Mutanda and Kamoto Copper mines – would have been expropriated by the Congolese government with whom Gertler is close.

It’s quite likely then, given China’s obvious comfort in operating in the Congo, that its companies may have bought the mines and taken control of a large slug of world cobalt (and copper) supply that is crucial to battery manufacture. Controlling the cobalt market would give the Chinese unprecedented control over the world automotive sector. Continue Reading →

Glencore settles with Gertler over Congo royalties – by Barbara Lewis (Reuters U.S. – June 15, 2018)

https://www.reuters.com/

LONDON (Reuters) – Glencore has settled a mining row in Democratic Republic of Congo with Israeli billionaire Dan Gertler by agreeing to pay royalties in a currency other than U.S. dollars, lowering the risk of disruption to copper and cobalt supplies.

U.S. sanctions on Gertler, Glencore’s former Israeli partner in Congo, had triggered litigation and a legal tangle that investors said might affect supplies of cobalt, needed for electric vehicle batteries, from the world’s biggest producer of the metal.

Glencore earlier this week reached a settlement in another dispute involving its Kamoto copper and cobalt mine in Congo, although it remains at odds with the Congolese government over a mining code that increases taxes and royalties on minerals. Continue Reading →

Congo’s Miners Face Harsh New Reality as Mining Law Finalized – by Thomas Wilson (Bloomberg News – June 13, 2018)

https://www.bloomberg.com/

The options for mining companies battling new legislation in the Democratic Republic of Congo — Africa’s biggest copper producer and the source of two-thirds of the world’s cobalt — have just about run out.

After six months of lobbying, companies including Glencore Plc and Randgold Resources Ltd. have got nowhere in their battle to push back against the mining law, which voids existing agreements and increases their costs. Congo approved the final part of the bill on Friday, and despite earlier indications from President Joseph Kabila that the rules might be eased, the law hasn’t been weakened in any way.

While the constitution bars Kabila from running for a third term, Congo’s embattled leader has refused to rule himself out as a candidate in elections later this year, and his campaign to wring more revenue out of mining companies is proving popular with voters. Continue Reading →

Glencore Faces New Legal Challenge Against Congo Cobalt Mine – by William Clowes and Thomas Wilson (Bloomberg News – June 8, 2018)

https://www.bloomberg.com/

(Bloomberg) — For Glencore Plc in the Democratic Republic of Congo, problems don’t form an orderly queue: they pile up on top of each other.

In the latest example of the commodity giant’s deteriorating relationships in the country, a convicted fraudster has resurrected a legal claim the company considered dead, launching a billion-dollar bid for compensation for a 19 percent stake he previously held in Mutanda Mining Sarl — the world’s biggest cobalt miner.

The lawsuit, the third court action this year challenging Glencore’s control of its prized Congolese mines, is another headache for the Swiss commodity trader as it faces down the government over a new mining code that hiked taxes. Continue Reading →

Sudbury Accent: Sudbury as the ‘Harvard’ of hardrock mining [Part 4 of 5] – by Stan Sudol (Sudbury Star – June 6, 2018)

http://www.thesudburystar.com/

The Sudbury Basin is Ontario’s metallic equivalent to the Alberta oils sands without the massive open pits as most of the mines historically have been underground. For 135 years, the region’s unique polymetallic ore-bodies have produced nickel, copper and significant quantities of cobalt, gold, silver and platinum group metals (PGMs).

It is the third largest source of PGMs after South Africa and Russia. Many multi-generational families earn good middle-class salaries in the many mines, two mills, two smelters and one refinery. Roughly 30 per cent of provincial mining activity takes place in Sudbury, according to the Ontario Mining Association.

Glencore’s recent C$900 million investment in the development of its Onaping Depth project and Vale’s C$760 million phase one development of its Copper Cliff Deep mine are indications of growing confidence in the future of the region. Continue Reading →

ICEBREAKING BULKER FOR CANADIAN ARCTIC MINE (The Motor Ship.com – June 6, 2018)

http://www.motorship.com/

Montreal-based Fednav has ordered a new icebreaking bulk carrier in Japan to sustain the year-round transportation requirements of Glencore’s Raglan nickel mine in northern Quebec, writes David Tinsley.

The 31,000dwt vessel has been contracted through trading house Sumitomo Corporation and will be built by Japan Marine United Corporation (JMU) at the Yokohama shipyard. The template for the project will be provided by Fednav’s 31,750dwt Nunavik, claimed to be the world’s most powerful icebreaking bulker when commissioned in 2014 from JMU’s Tsu yard.

Nunavik is in turn similar in design to the company’s 32,000dwt Umiak 1, delivered in 2006 by JMU predecessor Universal Shipbuilding. Both existing vessels support northern mining operations.

The newbuild will be of Polar Class 4 standard and, as with Umiak 1 and Nunavik, will offer a broader cargo carrying capability than that of a pure bulker. While ensuring a southbound flow of high quality nickel concentrates, she will also be used to transport a variety of supplies to the mining complex on northbound voyages, including equipment, machinery and dry and liquid consumables. Continue Reading →

What Does Northern Ontario Want From Queen’s Park? – by Stan Sudol (RepublicOfMining.com – May 31, 2018)

Northern Ontario Being Strangled

On June 7th, the people of Ontario will be going to the polls in one of the most pivotal elections in the province’s history. While Northern Ontario – north of the French and Mattawa Rivers, as I have never recognized the Parry Sound and Muskoka ridings as being part of the North – encompasses roughly 90 per cent of the province’s land mass, its population has been steadily declining to slightly over five per cent of Ontario’s total.

Unfortunately, our impact on provincial policies is almost negligible.

A buck a beer, cheaper gas, tax breaks combined with unaffordable infrastructure and social commitments, twinning the trans-Canada in Northern Ontario, buying back Hydro One, and jumping on a bulldozer to start building the road into the Ring of Fire are part of a bevy of mostly worthy but unsustainable promises Conservative Doug Ford, Liberal Kathleen Wynne and NDP Andrea Horwath have made.

However, I seldom hear any actual policy initiatives to grow the economy and create wealth so we can afford all these election initiatives and perhaps, just perhaps put a little money on our provincial debt which has more than doubled during the past 15 years under the McGuinty/Wynne Liberal era from about $138 billion in 2003/04 to $325 billion currently and growing. By the way, this is the largest sub-national debt in the world and twice as large as California which has a population of almost 40 million. We are paying roughly $1 billion a month to service that debt. That will surely rise when interest rates, which are at historic lows, eventually start going up! Continue Reading →

Glencore Goes From Crisis to Crisis With Possible Bribery Probe – by Thomas Wilson (Bloomberg News – May 21, 2018)

https://www.bloomberg.com/

It’s becoming hard to keep track of all of Glencore’s legal battles in the Democratic Republic of Congo.

The world’s biggest commodity trader is facing the possibility of a bribery investigation by British prosecutors over its work with Dan Gertler, an Israeli billionaire and close friend of Congo President Joseph Kabila.

That’s on top of other disputes, like a conflict with Gertler over unpaid royalties. The Swiss trader is also fighting the government over a new mining code that hikes taxes, and is part of a court case with Congo’s state-owned miner Gecamines, which is pushing to dissolve a local operating unit, saying Glencore overburdened it with debt. Continue Reading →

Tanzania cancels license of Barrick, Glencore nickel project – by Fumbuka Ng’wanakilala (Reuters U.S. – May 12, 2018)

https://www.reuters.com/

DAR ES SALAAM (Reuters) – Tanzania has revoked a retention license for an undeveloped nickel project jointly owned by Barrick Gold Corp and London-listed miner Glencore Plc as part of enforcement of a new mining regime.

The license for the Kabanga nickel project in northwestern Tanzania was among 11 retention licences canceled by the government under the Mining (Mineral Rights) Regulations of 2018, which were approved in January.

A retention license is granted to holders of a prospecting license after they identify a mineral deposit within the prospecting area which is potentially of commercial significance but cannot be immediately developed due to technical constraints, adverse market conditions or other economic factors. Continue Reading →

Rumble in the jungle: Glencore, a hard-slugging mining giant, meets its match in Congo (The Economist – May 3, 2018)

https://www.economist.com/

A fight between two billionaires involves a coveted mineral, cobalt

IN THE mining world the bout has the drama of a heavyweight title fight. In one corner is Ivan Glasenberg, billionaire boss of Glencore, the world’s biggest commodities-trading firm. In the other is Dan Gertler, an Israeli billionaire accused by America of corruption related to his dealings with Joseph Kabila’s government in the Democratic Republic of Congo (DRC).

The prize is a battery mineral, cobalt, which Glencore produces in the DRC and whose value has almost tripled since the electric-vehicle revolution accelerated at the start of 2017. It will be a tough fight.

In the DRC Glencore is currently facing the potential loss of one of its biggest mines and sharply higher mining levies, as well as a costly lawsuit. “It’s a shakedown of Glencore,” says an analyst in London. Continue Reading →