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Glencore’s ties to Sudbury run deep. So is its future here – by Hugh Kruzel (Sudbury Star – December 2, 2023)

https://www.thesudburystar.com/

Top company official tells chamber of commerce deep mining is the key to Glencore’s future operations in Sudbury

The man who leads Glencore’s Sudbury operations told the city’s business leaders this week that his company remains committed to this region, Canada and mining. Peter Xavier, a company vice-president, acknowledged that Glencore Sudbury’s Integrated Nickel Operations will soon close its Nickel Rim South mine, but that should not be a surprise.

Nickel Rim South Mine will close in late March as it goes into care and maintenance mode. The Skead-area mine’s employees will be reassigned to other Glencore operations in Sudbury, such as the Craig/Onaping project. “Mines have a life,” Xavier told the 128th annual general meeting of the Greater Sudbury Chamber of Commerce. “We all know mining one site is finite.

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Three of Canada’s major critical mineral projects are in Sudbury – by Staff (Sudbury Star – November 22, 2023)

https://www.thesudburystar.com/

They are Glencore’s Onaping Depth project, Vale’s Copper Cliff Deep project and KGHM’s Victoria Mine project

The federal government has launched a $1.5-billion fund for critical minerals infrastructure, while simultaneously highlighting close to 500 projects nationwide that are generating jobs and growing a greener economy. The funding announcement this week coincided with the release of an annual report on major projects underway across the country in the fields of energy, forestry and mining.

Three of the big mining projects are in Sudbury: Glencore’s Onaping Depth project, with an estimated capital cost of $1 billion to $2.5 billion; the Copper Cliff Deep project being pursued by Vale, pegged at $750 million to $1B; and a revived Victoria Mine project being undertaken in the Whitefish area by Polish company KGHM, at a projected cost of $1B to $2.5B.

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OPINION: Teck’s inessential coal sale makes it smaller and more vulnerable to takeover – by Eric Reguly (Globe and Mail – November 24, 2023)

https://www.theglobeandmail.com/

After two decades of evisceration, the Canadian diversified mining industry had one big name standing – Teck Resources. The company was not among the half-dozen giants that dominate the global mining industry, but it was the biggest we had left. With a smart strategy, disciplined spending and more than a little luck, Teck could emerge as a homegrown champion, perhaps not among the industry’s A-team players, but near the top end of the B list.

That was the vision, at least. What happened instead was self-evisceration. On Nov. 14, Teck sold its vast coal assets, all of them in Canada, to Glencore of Switzerland, Japan’s Nippon Steel and South Korea’s POSCO, in an US$8.9-billion deal. The sale of Teck’s coal made sense on one level, perhaps, and no sense on others.

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‘Easier deal to swallow’ — B.C. politicians soften their stance as Glencore buys Teck’s coal mines – by Naimul Karim (Financial Post – November 22, 2023)

https://financialpost.com/

Two dozen commitments agreed by the Swiss mining giant reassure community leaders

The mayors of two towns in British Columbia’s southeastern Kootenay region weren’t too happy when Glencore PLC first tried to buy Teck Resources Ltd. and its four steelmaking coal mines.

Six months on, however, both mayors seem to have changed their point of view now that Glencore is set to take over most of Teck’s coal mines for about US$7 billion. One of them even hopes the Swiss mining giant can help build more homes to address the region’s housing shortage.

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This Coal Giant Now Wants to Get Out of Coal – by Julie Steinberg (Wall Street Journal – November 19, 2023)

https://www.wsj.com/

Glencore Chief Executive Gary Nagle made his name running the commodity giant’s sprawling coal operations. Now he’s leading an effort to get the company out of coal altogether.

Glencore this past Tuesday agreed to a multibillion-dollar deal that will eventually rid it of its coal mines, a move that represents the company’s biggest strategic shift in years. That leaves it to focus on bolstering its position as a major supplier of the metals needed for electric-vehicle batteries and other green technologies.

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From bad blood and public bashing to an $8.9-billion deal: How Teck made nice with Glencore – by Niall McGee (Globe and Mail – November 18, 2023)

https://www.theglobeandmail.com/

Back in the spring, Teck Resources Ltd. suffered one of the biggest blows in its more than 100-year history. At the 11th hour, Canada’s biggest diversified mining company called off a restructuring that had been years in the making, after failing to garner enough support from shareholders.

On the day of that grim announcement, the atmosphere at Teck’s annual general meeting was akin to that in a morgue. Teck’s sombre-faced chief executive officer Jonathan Price and its board of directors were forced to publicly accept blame for putting forward a poorly conceived restructuring.

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Teck coal sell-off a green politics manoeuvre – by Terence Corcoran (Financial Post – August 17, 2023) https://financialpost.com/

https://financialpost.com/

Green promise may not play out as imagined

Somewhere within the machinations of Canada’s largest mining corporation the goal of increasing shareholder gains must still exist in some form, although the latest developments around Teck Resources does make one wonder.

The news Tuesday that the mining giant has agreed to sell its steelmaking coal operations to Swiss mining giant Glencore and companies in Japan and Korea for an “implied value” of $9 billion popped Teck shares to $52, a gain of eight per cent on the day. But the pop didn’t last long.

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Glencore-Teck deal reveals the irony of coal: Profitable and vital, yet endlessly shunned – by Heather Exner-Pirot (Globe and Mail – November 17, 2023)

https://www.theglobeandmail.com/

Heather Exner-Pirot is the director of energy, natural resources and environment at the Macdonald-Laurier Institute.

In many ways, the US$8.9-billion deal Glencore has struck for Teck Resources’ coal assets represents an elegant split that plays to each company’s strengths.

Teck, the Canadian miner, can now focus on its core base metals business, in particular copper, as it bets on strong returns in the years to come. Swiss commodities giant Glencore can build up its coal empire, adding the steelmaking coal assets to its vast thermal coal trade.

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OPINION: Ottawa sets out clear path for Glencore’s purchase of Teck’s coal mines – by Andrew Willis (Globe and Mail – August 17, 2023)

https://www.theglobeandmail.com/

The federal government is giving Switzerland’s Glencore PLC a clear path to acquiring Canada’s largest coal miner from Teck Resources Ltd., while making it clear Ottawa will block any foreign player bidding for all of Teck itself, the country’s critical minerals champion.

Although federal officials previously signed off on acquisitions of major metals producers – so long Inco Ltd., farewell Alcan Inc. – the current regime signalled a more protectionist, nationalist approach this week during a news conference at a condo construction site in Toronto.

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Teck to sell coal business to Glencore, Nippon Steel and POSCO in US$8.9-billion deal – by Niall McGee (Globe and Mail – November 14, 2023)

https://www.theglobeandmail.com/

Teck Resources Ltd. has agreed to sell its coal business to Swiss commodities trading giant Glencore PLC and two Asian steelmakers, in a US$8.9-billion transaction that requires federal approval, and will be closely scrutinized by Ottawa before it can proceed.

Vancouver-based Teck has been fielding offers for its core metallurgical coal business since the spring, when an earlier plan to spin it off was cancelled at the eleventh hour because of insufficient shareholder support. Founded in 1913, Teck is Canada’s largest diversified mining company, a major employer in British Columbia and one of the oldest miners in the country.

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Solidifying Mount Isa’s mining future – by Tom Parker (Australian Resources and Investment – November 9, 2023)

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With Glencore set to downsize Mount Isa in 2025, what is the way forward for the North West Minerals Province?

Glencore’s recent announcement that its Mount Isa copper operations and Lady Loretta zinc mine would close in 2025 sent shockwaves through the Queensland mining industry.It signalled the end of two of Australia’s most iconic mining operations, which have supported the world with a sustainable supply of copper, lead, zinc and silver for up to 60 years.

In the wake of Glencore’s announcement, Queensland Premier Annastacia Palaszczuk announced a $50 million support package for the Mount Isa region and those affected by the impending closure.

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Two Sudbury mining giants partner as Nickel Rim mine ramps down – by Amanda Hicks (CTV Northern Ontario – November 2, 2023)

https://northernontario.ctvnews.ca/

Glencore’s Nickel Rim South Mine is winding down operations with an eye on closing in 2024. Vice-president Peter Xavier said the mine has been important to the company since its inception in 2010.

He said exploration extended the mine’s lifespan from 2021 to 2024, but Glencore has been planning its closure for some time. This will create an opportunity to partner with the city’s other mining giant, Vale.

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Glencore says Nickel Rim South mine in Sudbury slowing down, but not closing altogether – by Kate Rutherford (CBC News Sudbury – November 1, 2023)

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

Glencore says feasibility study looking at partnership with Vale is about to begin and will go into next year

It has been a good run at Glencore’s Nickel Rim South mine in Sudbury, but for the time being, mining there is coming to an end. The vice-president of Sudbury operations, Peter Xavier, says the 15-year-old mine will transition to what it calls “care and maintenance” by next spring.

But there is more mining to be done in that area, and the next steps in a potential joint venture with Vale are under the magnifying glass. Xavier explains there’s a portion of the ore body where the property boundaries shared by the two companies intersect, but is difficult for each company to mine separately.

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Mining almost done at Sudbury’s Nickel Rim South Mine – by Harold Carmichael (Sudbury Star – October 27, 2023)

https://www.thesudburystar.com/

Workers will be transferred to other Glencore operations in the city

The last scoop load of nickel/copper ore is expected to be hoisted to the surface at Nickel Rim South Mine sometime in late March as the mine goes into care and maintenance mode. By then, most of the Skead-area mine’s employees will have been reassigned to other Glencore Sudbury Integrated Nickel Operations (Sudbury INO), such as the Craig/Onaping Depth Project.

As of his week, the mine was down to 250 employees as the process has already started. “(The mining) coming to an end,” said Gary Potts, director of Nickel Rim South, during an interview at a community open house on Thursday at the Skead Recreation Centre. “It’s gone three years longer than originally forecast.”

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Glencore to stop funding New Caledonia nickel mine as Indonesian supply surges – by Harry Dempsey and Leila Abboud (Financial Times – September 27, 2023)

https://www.ft.com/

Local industry extracting a key metal for electric car batteries is under pressure from rising production elsewhere

Mining and trading giant Glencore is to stop financing a lossmaking nickel mine in New Caledonia, as growing Indonesian production of a key metal in electric car batteries squeezes rivals.

Closure of the mine would be a blow to the French territory’s economy — mining accounts for 6 per cent of its GDP — and further concentrate global nickel production in Indonesia, where the supply chain is largely controlled by Chinese companies.

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