Glencore – Page 3 – Republic of Mining

The baptism by fire of Teck’s new boss, Jonathan Price, who wants to put Canada on the critical metals map – by Eric Reguly (Globe and Mail – September 9, 2023)

September 11, 2023

https://www.theglobeandmail.com/

On a warm afternoon in early September in London, Bernard Looney, the boss of BP, one of the world’s top oil companies, and a colleague sat down on wooden bench in St. James’s Square park, a patch of green Georgian loveliness near Buckingham Palace. They were enjoying the sunshine.

Moments later, another chief executive, Jonathan Price of Teck Resources Ltd. Canada’s biggest diversified mining company, strolled into the small park, where a Globe and Mail photographer was waiting to take photos of him, and found himself next to Mr. Looney. The two men, who both have offices overlooking the park, greeted each other and shook hands for the first time.

No quick end for sale of Teck’s coal unit as mining giant weighs more bids than expected – by Eric Reguly (Globe and Mail – September 5, 2023)

September 7, 2023

https://www.theglobeandmail.com/

Canada’s Teck Resources Ltd. is surprised by the global interest in its coal business, suggesting that bidders such as Switzerland’s Glencore PLC will face a highly competitive bidding process whose outcome will not be known quickly.

In an interview in London, Teck chief executive Jonathan Price said the range of possible bidders for the coal division, known as Elk Valley Resources (EVR), includes mining companies, steelmakers and resources funds. EVR is the world’s second-biggest exporter of seaborne metallurgical coal, which is used to make steel.

Major shareholder voted against Glencore’s climate report as miner eyes Teck’s coal unit – by Naimul Karim (Financial Post – September 7, 2023)

September 7, 2023

https://financialpost.com/

BlackRock concerned about ‘inconsistencies’ in strategy

BlackRock Inc. has revealed it didn’t support Glencore PLC‘s climate-resolution proposal at the miner’s annual general meeting in May.

In a report published late last month, BlackRock, a major Glencore shareholder, said that although Glencore improved its disclosure of climate-related risks and opportunities, it is “concerned” that aspects of the mining giant’s climate proposals and “recent developments have pointed to inconsistencies in the company’s stated strategy.”

Teck planning full exit from coal business, in event of partial sale will spin off remainder – by Niall McGee (Globe and Mail – August 18, 2023)

August 18, 2023

https://www.theglobeandmail.com/

Teck Resources Ltd. intends to completely exit its coal business, but in the event of only a partial sale, would spin off the remainder to ensure a clean break, a source familiar with the situation said. The Vancouver-based mining company has been entertaining a variety of bids for its metallurgical coal business since late April after an earlier restructuring plan failed.

Teck chief executive officer Jonathan Price said in a conference call last month that there has been “a lot of interest” in the coal business since it was put out for tender. Glencore PLC of Switzerland is the only known bidder for 100 per cent of the coal segment, with an offer worth up to US$8.2-billion.

Investment Canada Act amendment could complicate Glencore’s pursuit of Teck – by Naill McGee (Globe and Mail – August 14, 2023)

August 14, 2023

https://www.theglobeandmail.com/

A proposed amendment to the Investment Canada Act could complicate Glencore PLC’s takeover ambitions around Canadian miner Teck Resources Ltd. Last fall, federal Industry Minister François-Philippe Champagne announced a series of changes to the Investment Canada Act that aim to toughen oversight over proposed acquisitions of domestic companies by foreigners.

The changes include requiring acquirers to give Ottawa early notification of their intent to buy Canadian companies, extending the time period for national security reviews, and increasing financial penalties for those who don’t comply with the rules.

Conference Board forecasts nickel demand will lift all sectors of Sudbury’s economy – by Kate Rutherford (CBC News Sudbury – August 9, 2023)

August 10, 2023

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

An economist says Sudbury’s recovery is on the way but won’t reach pre-pandemic levels until 2026

Nickel prices and rising demand for the mineral will help Sudbury’s local economy ride out a slowing national economy and carry it to pre-pandemic prosperity by 2026. In its most recent report, the Conference Board of Canada says nickel prices jumped nearly 72 percent between 2020 and 2022 buoyed by the war in Ukraine and strengthening nickel demand.

Senior economist Rob Wiebe says it’s precisely that demand and heightened exploration for nickel to produce batteries for electric cars that will fuel investment across different sectors in the city.

Glencore holds back US$2B for Teck Resources as payouts drop – Thomas Biesheuvel (Bloomberg News – August 8, 2023)

August 10, 2023

https://www.bnnbloomberg.ca/

Glencore Plc underlined its continued interest in a deal with Teck Resources Ltd. by holding back US$2 billion for a potential purchase of the Canadian miner’s coal business — cash it would otherwise have returned to shareholders.

Glencore disclosed the new deals war chest in its first-half results Tuesday, as it joined rival miners in reporting a steep drop in profits after a retreat in commodity prices combined with a return to more normal trading conditions, following 2022’s wild swings.

Swiss coal miner Glencore warns NSW against ‘revenue grab’ – by Elouise Fowler (Australian Financial Review – August 2, 2023)

August 8, 2023

https://www.afr.com/

Glencore, one of the largest coal miners in NSW, is urging the state not to hike coal mining levies in a “revenue grab”, as the Minns government mulls following Queensland’s lead on higher coal royalties. The NSW government signalled a shake-up of coal royalty payments last week amid a broader consultation with the market on how to dent electricity prices after the coal price cap expires mid-next year.

The Switzerland-based miner and commodity trader, which reported 2022 full-year profits of $US34 billion ($51 billion) driven by soaring coal prices, warned the NSW government against changes to the royalty scheme.

Glencore buys Pan American’s stake in Argentinean copper project – by Cecilia Jamasmie (Mining.com – July 31, 2023)

July 31, 2023

https://www.mining.com/

Glencore (LON: GLEN) is buying out a 56% stake in Argentina’s MARA copper project from its partner Pan American Silver (TSX, NYSE: PAAS) for $475 million, as part of the miner and commodity trader’s push to increase exposure to the metal.

Pan American acquired a controlling stake in MARA as part of it recent acquisition of Yamana Gold, which closed in March. The project, located in Argentina’s northwestern Catamarca province, was set in December 2020 by integrating Minera Alumbrera’s plant and mining infrastructure with the Agua Rica copper-gold deposit.

Glencore moves to take full control of PolyMet, developer of Minnesota copper-nickel mine – by Steve Karnowski (Associated Press – July 3, 2023)

July 4, 2023

https://apnews.com/

MINNEAPOLIS (AP) — Swiss commodities giant Glencore moved Monday to take full ownership of PolyMet Mining, a company that’s developing a copper-nickel mine in northeastern Minnesota with one of Canada’s largest miners, Teck Resources.

Glencore already owns 82% of PolyMet Mining and has long been the project’s main financial backer. It offered Monday to pay around $71 million to raise that stake to 100%, which would take St. Paul-headquartered PolyMet private. Glencore’s proposal represents around a 167% premium over PolyMet’s closing stock price on Friday, and shares surged on the news in Monday’s trading.

Honouring Sudbury’s fallen miners: ‘It’s a big price to pay for a pound of nickel’ – by Harold Carmichael (Sudbury Star – June 20, 2023)

June 23, 2023

https://www.thesudburystar.com/

Health and safety in the mining industry in Greater Sudbury has come a long way over the past 95 years, so much, in fact, that where fatal mining accidents were once commonplace, they are now a rarity, according to a retired electrician at Falconbridge Limited.

“Since 1929, 100 men lost their lives,” Tom Rannelli said at the 39th-annual Workers’ Memorial Day service held at the Royal Canadian Legion branch in Falconbridge on Tuesday. “That’s approximately one a year. That’s just at Falconbridge.

Glencore makes offer for the steelmaking coal business of Teck Resources (Peterborough Examiner/Canadian Press – June 12, 2023)

June 12, 2023

https://www.thepeterboroughexaminer.com/

VANCOUVER – Swiss company Glencore it has made an offer to buy the steelmaking coal business of Teck Resources Ltd. The company said in a statement Monday it would pay cash for the assets, but did not say how much publicly.

Glencore said it remains willing to pursue its offer for all of Teck, but that it has made an alternative offer for the coal operations that it would combine with its own thermal coal assets.

Teck in talks with multiple parties regarding its coal business, company says – by Naimul Karim (Financial Post – June 8, 2023)

June 12, 2023

https://financialpost.com/

‘Our focus on separation is to unlock the full potential of our unparalleled copper growth business’

Teck Resources Ltd. is evaluating multiple expressions of interest in its steelmaking coal business, more than a month after it decided to pull a proposal to divide the company into separate coal and copper operations.

“Our high-margin, long-life steelmaking coal assets … has, in turn, generated considerable interest from various parties,” Teck’s chief executive Jonathan Price said in a press release on June 6. “Our focus on separation is to unlock the full potential of our unparalleled copper growth business.”

Teck fielding expressions of interest for coal business, as Canadian miner considers new restructuring plan – by Niall McGee (Globe and Mail – June 6, 2023)

June 8, 2023

https://www.theglobeandmail.com/

Teck Resources Ltd. TECK-B-T is fielding expressions of interest from parties potentially interested in mergers-and-acquisitions transactions concerning its metallurgical coal business, as Canada’s biggest diversified mining company weighs the best path forward after a botched restructuring plan earlier this year.

In April, Vancouver-based Teck did not move forward on a planned split of the business that would have seen it spin off its coal division from its metals mines, after it failed to win sufficient support from shareholders.

Teck Receives Interest in Coal Business as Glencore Circles – by Jacob Lorinc (Yahoo/Bloomberg – June 6, 2023)

June 6, 2023

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

(Bloomberg) — Teck Resources Ltd. received several proposals for deals involving its coal operations, as the Canadian miner works to draw up a new plan for splitting off the business while rejecting a bid from Glencore Plc.

Teck’s plans to exit coal and create a standalone base-metals company suffered a blow in April when it failed to win enough shareholder support for a complicated spinoff proposal. It maintains that separating from its coal assets will create the most value for shareholders, and is now under pressure to develop a plan more appealing than Glencore’s $23 billion offer for the entire company, especially with the prospect of a sweetened bid on the way.