Glencore – Page 28 – Republic of Mining

Glencore: Massive investment in coal mines needed – by Frik Els (Mining.com – June 13, 2016)

June 14, 2016

http://www.mining.com/

In its first Sustainability Development report dealing with climate change released on Monday, Glencore argues that despite the rapid growth in renewable sources, coal will continue to be a mainstay of the global energy mix.

The Swiss mining and commodities trading giant said demand for coal was expected to grow by roughly 7% through 2030 to just over 6 billion tonnes of coal equivalent (btce) from 5.6 btce in 2013.

The growth is primarily driven by emerging markets that continue to build low cost, coal-fired electricity generation plants. Cumulative demand over the period of the study amounts to between 19 – 21 billion tonnes and in order to meet future demand 500 million to 1 billion tonnes of export capacity would have to be developed.

Sudbury’s air quality continues to improve – by Ben Leeson (Sudbury Star – June 9, 2016)

June 9, 2016

http://www.thesudburystar.com/

Greater Sudburians should be breathing a little easier these days, based on the results of Clean Air Sudbury’s newest report.

Clearing in the Air, the third report by the local non-profit group on air quality trends in the city, was released on Wednesday. Based on data from the Ontario Ministry of the Environment and Climate Change, the National Pollutant Release Inventory and the Greater Sudbury Sulphur Dioxide and Particulate Monitoring Networks operated by Vale and Glencore, the report showed that Greater Sudbury’s air quality continues to improve.

“This is a trend we have seen over a number of decades,” said Ray Potvin, a former air quality specialist for the province and private sector, who authored the report. “This report shows that trend is ongoing. These improvements are consistent with what we’ve seen across the province, in terms of air quality, during the past 10 years. This is a result of governments requiring stricter emission controls.”

Glencore must face U.S. lawsuit over zinc prices – by Jonathan Stempel (Reuters U.S. – June 6, 2016)

June 7, 2016

http://www.reuters.com/

NEW YORK – A U.S. judge said on Monday two units of Anglo-Swiss mining company Glencore Plc must face a private antitrust lawsuit accusing them of trying to monopolize the market for special high grade zinc, driving up its price.

U.S. District Judge Katherine Forrest in Manhattan said zinc purchasers alleged “a plausible story of market control” by the Glencore units, Glencore Ltd and Pacorini Metals USA Inc, that violated the Sherman Act, a U.S. antitrust law.

In a 62-page decision, the judge also dismissed the purchasers’ claim that Glencore’s 2010 purchase of Pacorini was an illegal merger because its effect was to reduce competition.

BHP, Glencore Said to Bid for Anglo’s Australian Coal Mines – by Brett Foley and Dinesh Nair (Bloomberg News – June 7, 2016)

June 7, 2016

http://www.bloomberg.com/

BHP Billiton Ltd. and Glencore Plc are among final bidders for Anglo American Plc’s Australian metallurgical coal assets that may fetch about $1.5 billion, people with knowledge of the matter said.

Anemka Resources, the mining investor backed by Warburg Pincus, has also made a bid, two of the people said, asking not to be identified as the information is private. China’s Yanzhou Coal Mining Co. and a pairing of Apollo Global Management LLC and Xcoal Energy & Resources LLC, submitted final bids for the Moranbah and Grosvenor mines by a June 6 deadline, as well, the people said.

Anglo American could reach an agreement for the mines as soon as this month, though no final decision has been made and talks could still fall apart, they said. Glencore may be bidding with a partner, one of the people said.

Glencore to close Tahmoor mine in NSW due to low coal prices (Sydney Morning Herald – June 2, 2016)

June 2, 2016

http://www.smh.com.au/

Swiss miner Glencore will close its Tahmoor coal mine in NSW by early 2019, blaming continued low prices in global coal markets. Glencore, one of Australia’s largest coal producers running 18 mines and employing some 7650 workers, said it had started consultation with the 350 employees at the mine.

A spokesman said the first redundancies wouldn’t occur for at least 12 months. “We’ve tried to give [workers] as much notice as possible … so we can give our people as much time to plan as possible,” a spokesman said.

“We do our best to look for redeployment opportunities for them elsewhere within out business and at other mines in the industry.” The underground mine, in the southern highlands of NSW about 75 kilometres south-west of Sydney, has been operating since 1979 and last year produced 2.1 million tonnes of metallurgical coal used in steel making.

Iran says in talks with Rio, Glencore about copper projects – by Frik Els (National Post – June 1, 2016)

June 2, 2016

http://www.mining.com/

Iran is stepping up talks with potential foreign investors with an eye to developing its mining and metals industries according to Mehdi Karbasian, president of Imidro a state-owned group pushing for mine development in the country, Platts News reported on Wednesday.

The annual value of Iran’s mining and metals imports and exports only amount to $11.5 billion at the moment, but following the lifting of sanctions last year the country has ambitious plans saying potential revenues from the sector could be worth more than crude oil.

Speaking following the opening of a new Europe-Iran trade center in Berlin, Karbasian said Imidro recently held talks with Australia’s Rio Tinto about new investments in the Middle Eastern nation’s aluminum, steel, copper and gold industries.

Glencore Said to Complete $7.7 Billion Loan Amid Turnaround – by Sally Bakewell and Agnieszka De Sousa (Bloomberg News – May 24, 2016)

May 24, 2016

http://www.bloomberg.com/

Glencore Plc finalized a $7.7 billion loan from almost 60 banks as the commodity trader shores up its balance sheet following a raw-materials downturn.

Lenders offered more than $10 billion, according to a person familiar with the matter who asked not to be identified because they’re not authorized to speak publicly. The loan has an all-in cost of 95 basis points above the three-month London interbank offered rate, they said.

“This is a signal that the market is open,” said Paul Gait, a London-based senior analyst at Sanford C. Bernstein & Co., a research arm of AllianceBernstein Holding LP, which oversees $479 billion of assets. “People were concerned that they wouldn’t be able to refinance their debt.”

Ivan Glasenberg’s advice is buy not build, but rival miners aren’t listening – by Matthew Stevens (Australian Financial Review – May 14, 2016)

May 16, 2016

http://www.afr.com/

Annually in May global mining bosses assemble in Miami for an industry summit described as “speed dating for chief executives”. “They fly into Miami, they get a chance to talk directly to their big US investors and then they all retreat into private meetings with each other,” one miner suggested this week. “That is the real value of going there, they get to look the whole industry in the eye.”

If that is the rule for Miami, then Ivan Glasenberg followed it to the letter. Glasenberg is a headliner whenever he speaks and Tuesday in Miami was no different. But every illuminating, eye-watering utterance he offered his audience in Miami was shaped more for the ears of his mining peers as much as it was the attention of his investors.

Rhetorically recharged after Glencore’s slightly humiliating 18 month-long brush with financial calamity, Glasenberg allowed himself to return to the pre-crisis conversational themes.

Glencore Has Good News for Metal Bulls Starting to Doubt Rally – by Luzi-Ann Javier(Bloomberg News – May 11, 2016)

May 12, 2016

http://www.bloomberg.com/

The resurgence in mining shares this year may be just getting started, if Glencore Plc’s assessment is right.

Demand is set to exceed supply for zinc and some other industrial metals, the mining and trading company said at a conference Tuesday. The outlook comes after supply gluts and three years of declining prices deterred production. BHP Billiton Ltd., the world’s biggest mining company, said separately that it isn’t waiting for prices to recover as it boosts investments in copper and oil.

“Structural deficits are returning, led by zinc,” Glencore said in a presentation posted on its website for the mining conference in Miami. “Supply challenges for copper and zinc remain due to resource quality and scarcity at current prices.”

Glencore CEO Lists Mining’s Mistakes After $1 Trillion Spree – by Agnieszka De Sousa (Bloomberg News – May 11, 2016)

May 11, 2016

http://www.bloomberg.com/

Glencore Plc’s billionaire Chief Executive Officer Ivan Glasenberg wants the mining industry to learn from past mistakes after a $1 trillion spending spree left the world awash with metals.

Growth for the metals industry should mean cash flows and earnings, not digging up as many tons as possible, Glasenberg said in a presentation on Tuesday. Profit can be improved by accepting lessons from the 12 years when mining companies poured cash into boosting production of everything from copper to iron ore.

“Accept that volume growth cannot be an end in itself,” according to Glencore’s slides from the Bank of America Merrill Lynch mining conference in Miami. Under a headline of “Recipe for Better Returns,” the company wrote that management incentives in the industry need to encourage “rational behavior.”

Glencore becomes top shareholder in Australia’s Atlas Iron via debt-to-equity deal – by James Regan (Reuters U.S. – May 9, 2016)

May 9, 2016

http://www.reuters.com/

Glencore has emerged as the top shareholder of embattled Australian iron ore miner Atlas Iron after a debt-to-equity transaction, giving the global mining and trading company its only direct exposure to production of the steelmaking ingredient.

Glencore has acted as an intermediary in buying and selling iron ore for third parties since 2008 but has mostly avoided, either by design or circumstances, the production side of the sector, which is dominated by Vale, Rio Tinto and BHP Billiton.

Glencore subsidiary Maru Sky earlier this year acquired a portion of Atlas debt as the small Australian miner negotiated with creditors to fend off collapse brought on by weak iron ore prices.

Glencore Sticks to Cutbacks Promise as Metals Output Drops – by Agnieszka De Sousa(Bloomberg News – May 3, 2016)

May 4, 2016

http://www.bloomberg.com/

Glencore Plc kept a pledge to produce less metal following last year’s price rout and maintained its earnings outlook for the trading unit.

Zinc output slid 28 percent in the first quarter from a year earlier to 257,100 metric tons, the Baar, Switzerland-based company said in a statement on Wednesday. Copper production fell 4 percent even as South American output rose, while the firm mined 17 percent less coal. It said it’s sticking to previous output forecasts for all commodities, except oil.

“Volumes in-line with expectations and maintaining guidance is reassuring that the group is in control of its actions,” Heath Jansen, an analyst at Citigroup Inc. in London, said in an e-mailed note.

Some of the biggest miners have been forced to shutter unprofitable operations, trim costs and sell assets to reduce debt in response to slowing demand from top user China.

Glencore considers Kazakh gold mine sale to cut debt – by James Wilson, Neil Hume and Arash Massoudi(Financial Times – May 3, 2016)

May 3, 2016

http://www.ft.com/

Glencore is exploring options for its biggest gold mine — which could include a $2bn sale — as it steps up its efforts to reduce its debt burden.

Chinese miners are expected to lead the running to buy the company’s Vasilkovskoye project in Kazakhstan, according to people familiar with the sale process, following a rebound in the price of the precious metal this year. Glencore decided to consider a sale after being approached by several suitors, and has appointed BMO Capital Markets and Deutsche Bank to handle a possible deal.

A successful disposal would bring Glencore much closer to its target of bringing net debt below $18bn this year, and down to $15bn by the end of 2017 — a strategy intended to reassure investors who last year grew concerned at the Swiss group’s ability to withstand tumbling commodity prices.