Glencore – Page 4 – Republic of Mining

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)

November 20, 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.

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

November 17, 2023

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.

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

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.

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

November 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.

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)

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.

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

November 10, 2023

Home

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.

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

November 3, 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.

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

November 2, 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.

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

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.”

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

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.

Difficult decisions to open a new all-electric mine in Sudbury – by Len Gillis (Northern Ontario Business – September 13, 2023)

September 13, 2023

https://www.northernontariobusiness.com/

Glencore’s new Onaping Depth mine will need an underground refrigeration system and smaller diameter tunnels to keep the costs down

The process of going from diesel-powered underground mining to battery-electric mining is now a foregone conclusion for most Northern Ontario mine operators, but there are going to be plenty of growing pains.

That was one of the messages that came out of the Global Mining Guidelines Group forum held in Sudbury on Sept. 12 to examine the job of converting underground mines to full battery electric operations.

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.