GLEN.L - Glencore plc

Discussion in 'International Stock Markets' started by Marvan, Nov 4, 2019.

  1. Marvan

    Marvan Well-Known Member

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    Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, energy products, and agricultural products.

    It operates in three segments: Metals and Minerals, Energy Products, and Agricultural Products.

    The Metals and Minerals segment is involved in smelting, refining, mining, processing, and storing zinc, copper, lead, alumina, aluminum, ferroalloys, nickel, cobalt, and iron ore.

    The Energy Products segment activities include coal mining and oil production operations covering crude oil, oil products, steam coal, and metallurgical coal; and investments in ports, vessels, and storage facilities.

    The Agricultural Products segment engages in the storage, handling, processing, and port facilities of wheat, corn, canola, barley, rice, oil seeds, meals, edible oils, biofuels, cotton, and sugar.

    Glencore plc markets and delivers physical commodities sourced from third party producers and its production to industrial consumers in the automotive, steel, power generation, oil, semi-fabricator, and food processing industries.

    The company also provides financing, logistics, and other services to producers and consumers of commodities.

    It operates in the Americas, Europe, Asia, Africa, Oceania, and internationally.

    The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014.

    Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.
     
  2. Marvan

    Marvan Well-Known Member

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  3. Marvan

    Marvan Well-Known Member

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    LONDON, Nov 7 (Reuters) - Katanga Mining Limited, a big Congolese copper and cobalt producer, said on Thursday it would raise around $7.6 billion Canadian dollars ($5.8 billion) via a rights issue as part of a debt-for-equity swap with parent Glencore.

    Katanga Mining will subsequently owe Glencore $1.5 billion, reducing its debt from $7.7 billion after experiencing setbacks including a fall in the price of cobalt from record levels of $95,000 per tonne in 2018 to around $35,000 now.

    Thursday's statement said Glencore, which owns approximately 86.3% of Katanga, had agreed to swap $5.8 billion in debt for equity, which will raise its stake further in the firm. Remaining shareholders will also have the chance to take up the rights issue, but it is not yet clear whether they will.

    The residual debt of $1.5 billion will remain outstanding until 2023.

    Given the negative outlook for the cobalt market Katanga said its directors had agreed that recapitalising the company now was the best way forward.

    The debt was scheduled to be paid by Jan. 1, 2021 and recapitalising now will be less dilutive in the event Katanga's creditworthiness deteriorates further.

    Glencore's share price, which has fallen around 10% this year, was trading 1% higher by 1503 GMT.

    Glencore enjoyed a sustained rally as the push for battery minerals encouraged investors to overlook the risk of operating in Democratic Republic of Congo.

    But its share price has underperformed other major miners and its profits have dropped as Glencore has fallen into dispute with the Congolese government over a mining law and been subject to a U.S. Department of Justice investigation.

    It said in July it had begun an overhaul of its underperforming Africa business.

    In a note, Citibank analysts said the recapitalisation would have "limited impact" on Glencore's balance sheet.

    https://finance.yahoo.com/news/glencore-strikes-deal-katanga-over-151955371.html
     
  4. Marvan

    Marvan Well-Known Member

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    Nov 13 (Reuters) - British diversified miner Glencore Plc's Canadian unit said on Wednesday it would permanently close down the Brunswick Lead Smelter in New Brunswick that employs about 420 people.

    The unit said the smelter, which started in 1966, had been 'uneconomic' since the Brunswick mine closed six years ago.

    "We have thoroughly assessed all our options and come to the unavoidable conclusion that the smelter is simply not sustainable, regardless of the recent labour dispute," said Chris Eskdale, Canadian unit's head of zinc and lead assets.

    Earlier on Wednesday, the United Steelworkers (USW) union claimed that over half of the smelter's employees, fighting to improve health and safety standards, were locked out since April 24. (https://bit.ly/33LQYML)

    The union said New Brunswick workers will be picketing at three Glencore operations in Montreal on Wednesday.

    Glencore Canada said it intends to provide pension, severance and outplacement support services to all employees as part of closure settlements to be agreed on.

    It also intends to seek potential relocation opportunities for the smelter workers at its other mining and metallurgical operations, and retain a few to work on site monitoring, water treatment and closure projects in the months ahead.

    https://finance.yahoo.com/news/1-glencores-canadian-unit-close-151235053.html
     
  5. Marvan

    Marvan Well-Known Member

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    Glencore Sees Carbon Emissions Falling as Coal Mines Fade Away

    Glencore Plc, the world’s biggest shipper of thermal coal, has mapped out cuts in carbon emissions generated by its customers as the company slowly retreats from the dirtiest fuel.

    The world’s biggest resource companies, from miners to oil majors, are under increasing pressure to account for the pollution created when their customers burn or process the materials they produce.

    Glencore said on Tuesday its so-called Scope 3 emissions will fall by 30% in the next 15 years, predominantly as a result of depleting mines in Colombia and South Africa. That’s a projection based on its current mine plans, rather than a fixed target. Glencore did not say how much coal production would be cut to meet the projection.

    Glencore has faced the brunt of a growing investor concern about climate change. While its biggest rivals are in the process of exiting coal, Glencore has been a staunch defender of the fuel, saying it’s essential to providing affordable and reliable power in developing countries.

    Still, the commodity trader’s billionaire chief executive officer, Ivan Glasenberg, has been forced to make concessions to keep investors. Last year, Glencore agreed to cap coal production, albeit above its current output level.

    The mining industry has yet to find common ground on how to deal with scope 3 emissions. BHP Group in July called on the mining sector to take ownership of emissions that result from product sales, a stance that’s been rejected by some rivals who argue it’s too difficult to calculate a supplier’s share. Rio Tinto Group is partnering with a Chinese steelmaker to develop methods to cut pollution and improve the steel industry’s environmental performance, while Vale SA has said it will develop ambitious targets to cut Scope 3 emissions.

    Arguably, the Scope 3 emissions of the oil industry are even more difficult to calculate. That hasn’t stopped companies like Repsol SA and BP Plc from setting net-zero emissions targets for all the oil and gas they extract and their customers burn.

    Glencore said the reduction in emissions will derive mainly from its Colombian coal assets, and to a lesser extent from its South African and Australian mines. The Colombian market is currently under pressure as it predominantly ships to Europe where countries are cutting their use of the fuel, while South Africa has challenges with labor relations and government policies.

    https://finance.yahoo.com/news/glencore-sees-carbon-emissions-falling-070203646.html
     
  6. Marvan

    Marvan Well-Known Member

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    Glencore posts first annual loss in four years as impairments bite

    Glencore reported its first annual net loss since 2015 on Tuesday after writing down $2.8 billion in coal, oil and copper assets.

    The world's largest commodities trader has been hit by falling demand for coal and weaker prices in some of its key markets.

    The $2.8 billion in impairments mainly related to the closure of its African copper operations, which suffered from low cobalt prices, the expiry of licenses in its Chad oil operations and weak demand for coal from Europe, which hit its Colombian operations.

    "The amount of coal being consumed in the Atlantic is decreasing, right now, seaborne coal demand is about 70 million tonnes and I don't see a big recovery and it will continue to decrease," said Chief Executive CEO Ivan Glasenberg.

    "The reserves are depleting in Colombia, by 2035, we won't have any production in Colombia."

    Overall, the Anglo-Swiss miner reported a net loss of $404 million for 2019, compared to a profit of $3.41 billion a year earlier.

    Core earnings or adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $11.6 billion beat analysts' estimates of $11.25 billion.

    Shares in Glencore were down 1.4% in London at 0839 GMT, the stock has underperformed its peers due to its exposure to coal and multiple corruption probes linked to its operations in Nigeria, Venezuela and the Democratic Republic of Congo. Glencore is cooperating with the investigations.

    The company said its legal costs jumped to $159 million from $86 million in 2018.

    The company cut the value of its oil business in Chad by $538 million after some mining licenses expired. Since 2015, it has booked impairments of $2.4 billion on assets in Chad.

    In Colombia, Glencore runs two coal operations through its company Prodeco and owns a third of the Cerrejon coal mine. The business has been under pressure due to low prices for coal shipped from the region.

    In 2019, Prodeco’s profits were down significantly as it invests near term in mine development activities, expected to increase the operation’s medium-term volume productivity and earnings prospects.

    https://finance.yahoo.com/news/glencore-posts-first-annual-loss-075410181.html
     
  7. Marvan

    Marvan Well-Known Member

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    King Coal Isn’t Dead Yet. Ask Glencore

    Thermal coal has become a byword for the resource industry’s climate crimes. From BlackRock Inc. down, fund managers are reluctant to touch a mineral that releases more carbon dioxide than any other energy source. Large miners, from BHP Group to Anglo American Plc, are trying to dump it. Coal is also — for now at least — profitable.

    It’s the unpalatable truth that explains why Glencore Plc, the world’s largest exporter of the black stuff, sticks with a dying fuel. Morals aside, the details suggest Chief Executive Officer Ivan Glasenberg and his team may well be right.

    Tuesday’s full-year earnings from the trader and miner bore more than a few smudges. Lower prices for commodities like copper and cobalt took a heavy toll. Coal didn’t help, with the price of benchmark Newcastle coal down by over a third in 2019. Colombia, where Glencore’s reserves will run out in the next decade or so, accounted for nearly $1 billion of a $2.8 billion impairment that dragged the company to its first net loss since 2015. Those mines supply an Atlantic market where demand has all but dried up, thanks to mild weather, high European carbon prices and cheap gas.

    But that doesn’t mean the end is nigh.

    Coal is obviously not the energy source of the future. That much is apparent even to those who agree with the International Energy Agency’s “stated policy” scenario, which sees global coal demand roughly flat out to 2040. Glencore veterans like Glasenberg, who won his spurs trading the mineral, and some of his potential successors can be counted among them.

    Yet it’s also clear from 2019’s numbers that there will be short-term opportunities. Asian demand is holding and global supply is starting to come under pressure, as diversified miners divest and financing costs rise. Last year, global seaborne thermal coal demand was up 1.5%, despite an 18% drop in the market that feeds Europe. That’s because in absolute terms, the European drop adds up to 30 million metric tons — more than covered by Asia’s rise of less than 6%, or 47 million tons. Consider that over the past 20 years, Asia has accounted for some 90% of all coal-fired plants built globally. That suggests demand will hold enough to support reduced supply, even if by the 2030s more than 80% of the world’s appetite will come from Vietnam, India and their neighbors. Plans from homegrown suppliers like Coal India Ltd. will almost certainly fail to satiate domestic demand.

    Granted, sticking with thermal coal isn’t a good way to attract investors guided by environmental, social and governance criteria. Yet that’s not, as yet, a justification to sell, either. Under the current investment criteria at BlackRock, for example, Glencore just needs to keep coal contributing less than a quarter of its revenue. Last year, it amounted to about 4% of the top line, even if the contribution was closer to a quarter in terms of earnings before interest, tax, depreciation and amortization. Thanks to depleting assets in Colombia, Glencore can even hit its target of shrinking carbon emissions produced by its supply chain, so-called Scope 3, by 30% by 2035, without much effort.

    Glencore’s coal Ebitda margins fell sharply last year but remain at a decent 36%, meaning the commodity is still one of its most profitable segments. The fuel effectively funds greener ventures, and keeps trading activities ticking over. That’s a good enough reason not to spin off the business, which may in any event do little to help clear other valuation-hampering questions, over leadership and a pending U.S. Department of Justice investigation into possible money-laundering and corruption.Staying put means Glencore could also snap up some bargains, with BHP selling its huge Mount Arthur mine in Australia, not far from its rival’s Hunter Valley assets. Glasenberg has capped coal production at 150 million metric tons — an expedient decision that helps support prices — but there is no reason not to swap Colombian assets for Asia-facing Australia.


    The risk of meddling with a moribund commodity, even when you account for much of the world’s seaborne supply, is that you can end up with worthless assets. Unfortunately for a warming climate, that looks a distant enough prospect for the world’s largest commodities trader.

    https://finance.yahoo.com/news/king-coal-isn-t-dead-092913355.html
     
  8. Marvan

    Marvan Well-Known Member

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    Colombia mining companies to reduce operations due to coronavirus

    BOGOTA, March 24 (Reuters) - Colombian mining companies, including coal producers Cerrejon and Drummond, will reduce operations to slow the spread of coronavirus, the sector's guild said on Tuesday.

    Some 15,000 workers directly employed in the industry will stop working, as will 18,000 indirect workers, the Colombian Mining Association (ACM) said in a statement.

    The Andean country will enter a nationwide 19-day quarantine late on Tuesday aimed at preventing further spread of coronavirus, which has killed more than 15,300 people worldwide.

    Colombia has 306 confirmed infections and three deaths attributable to COVID-19.

    Coal miner Drummond will temporarily reduce mining operations in the Cesar province, it said in a statement.

    A contingency team will largely live on-site to avoid workers entering and leaving, Drummond said, adding the team will be protected by the highest standards of bio-safety.

    "These workers will make sure we continue to meet environmental standards, that deterioration of the mine, equipment and infrastructure is avoided and that obligations for exporting coal are met," the company said.

    Colombia is the world's fifth-biggest coal exporter and the fossil fuel is its second-largest generator of foreign currency after oil.

    Cerrejon, which is owned equally by BHP Group, Anglo American and Glencore, will also reduce its operations in the country's La Guajira province.

    The company, which exported 26.3 million tonnes of coal in 2019, began the staggered reduction of its operations on Monday night, it said in a statement.

    As with Drummond, a contingency team will ensure compliance with environmental rules, care for equipment and infrastructure, and make sure export obligations are met, Cerrejon said.

    Neither company provided figures on their activity reductions.

    Earlier in March members of Cerrejon unions Sintracarbon and Sintracerrejon voted for strike action over a dispute linked to pay and benefits.

    The union has not yet set a date for the strike to begin.

    A 2013 strike at Cerrejon lasted 32 days.

    Cerrejon also controls a 150-kilometer (90-mile) rail line and a seaport which receives ships that can carry up to 180,000 tonnes of cargo.

    Coal prices fell to an average of $51.40 per tonne last year, down from $82.50 per tonne in 2018, according to government. (Reporting by Oliver Griffin; Additional reporting by Luis Jaime Acosta; Editing by Andrea Ricci)

    https://finance.yahoo.com/news/colombia-mining-companies-reduce-operations-191712375.html
     
  9. Marvan

    Marvan Well-Known Member

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    Glencore's chrome joint venture in South Africa with Merafe declares force majeure

    LONDON (Reuters) - Glencore's <GLEN.L> chrome joint venture in South Africa with Merafe Resources <MRFJ.J> has declared force majeure on qualifying contracts after a nationwide lockdown forced operations to shut, a Merafe executive said.

    "All our operations are shut and are on care and maintenance. We have declared force majeure on qualifying contracts" Merafe financial director Ditabe Chocho told Reuters.

    Glencore declined to comment.

    South Africa, which has called a three-week lockdown to slow the spread of coronavirus, is the world's biggest producer of chrome ore, an essential ingredient in stainless steel. Last year the country supplied 83% of China’s imports.

    The Swiss-based Glencore owns 79.5% of the Glencore-Merafe Chrome Venture, which has a total capacity of 2.3 million tonnes of ferrochrome per annum.

    Other South African chrome operators including Samancor Chrome and Tharisa have also declared forced majeure on contracts.

    https://finance.yahoo.com/news/glencores-chrome-joint-venture-south-084716936.html
     
  10. Marvan

    Marvan Well-Known Member

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    2020 Distribution and Revolving Credit Facilities

    The COVID-19 pandemic has generated exceptional social and financial impacts around the world. Glencore’s first priority remains the health and wellbeing of our people, their families and our communities. We understand the uncertainty caused by the current environment and will endeavour to support our workforce and local communities, as appropriate.

    Simultaneously, we are taking prudent action to protect and strengthen our capital structure amid the current period of heightened uncertainty in order to enable us to more safely navigate this challenging environment.

    The Company reaffirms its commitment to maintain strong Baa/BBB investment grade credit ratings, supported by a near-term Net debt target range of c. $14-15 billion (from $17 billion at 31 December 2019, excluding marketing related lease liabilities) and a Net debt/Adjusted EBITDA target ratio closer to 1x.

    To support this commitment, the Board believes it prudent to defer its decision as to whether to proceed with the proposed cash distribution of $0.20 per share (c. $2.6 billion) in 2020, amid the current period of exceptional economic uncertainty. We have also reinforced our liquidity position ($10.1 billion of committed available liquidity as at 31 December 2019) through the refinancing and extension (see below) of our revolving credit facilities (the “Facilities”) on the same commercial terms as our 2019 Facilities.

    Glencore continues to generate material levels of positive free cash at current production levels and spot prices, due to its globally diversified marketing / distribution business and industrial asset portfolio, including many large-scale, low-cost assets. The significant weakening of our key producer currencies against the USD (AUD, ZAR, CAD, KZT etc.), capital expenditure deferrals being implemented and lower oil prices and interest rates have provided substantial cash offsets to the fall in USD commodity prices and some level of COVID-19, mainly government imposed, production disruptions.

    2020 Distribution
    The Board considers it prudent to defer its decision as to whether to proceed with the proposed cash distribution of $0.20 per share (c. $2.6 billion) in 2020, in order to strengthen the Group’s overall financial position and reflecting that, although none to date, there exists the risk of material production disruption due to COVID-19.

    When the Board is in a better position to consider COVID-19’s updated impacts, the economic outlook, and the Company’s prospects, expected alongside release of the Group’s interim results in Q3 2020, it will then decide what level of distribution would be appropriate to make this year.

    Refinancing and extension of Revolving Credit Facilities
    Our Facilities have been refinanced and extended, effective 22 May 2020, on the same commercial terms as our 2019 Facilities.

    The shorter-term Facilities were initially launched at $8 billion and closed substantially oversubscribed, raising $10.75 billion. Reflecting strong support from Glencore's broad group of relationship banks:

    • Glencore scaled back subscription levels and ultimately increased the size of the Facilities to $9.975 billion, up from the $9.775 billion signed in 2019
    • A total of 48 banks committed to the Facilities, including 31 Mandated Lead Arrangers and Bookrunners.


    The longer-term $4.65 billion revolving credit facility was extended to 2025.

    The new and extended facilities are for general corporate purposes, comprising:

    • a $9.975 billion 12-month revolving credit facility, with a 12-month term-out option at Glencore’s discretion, and a 12-month extension option
    • a $4.65 billion 5-year revolving credit facility with a 12-month extension option
    As in previous years, these committed unsecured facilities contain no financial covenants, no rating triggers, no material adverse change clauses and no external factor clauses.

    Glencore’s Chairman, Tony Hayward, commented: “As well as prioritising the health and wellbeing of our people, their families and our communities, we are taking a cautious approach to protect our capital structure amid the current period of extreme uncertainty. Therefore, notwithstanding that Glencore continues to generate material levels of positive free cash in the current environment, the board considers it prudent to defer the distribution decision. We will review the opportunity for a distribution at our August results, when we will have an improved understanding of COVID-19’s impact on our business and its prospects.”

    https://www.glencore.com/media-and-insights/news/2020-Distribution-and-Revolving-Credit-Facilities
     
  11. Marvan

    Marvan Well-Known Member

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    Exclusive: Glencore bids $325 million for Vicentin's stake in Argentine soy crusher Renova - sources
    [​IMG]
    By Hugh Bronstein
    ,
    ReutersApril 7, 2020


    [​IMG]
    FILE PHOTO: Soybean plants are harvested at a field in the city of Chacabuco, Argentina
    By Hugh Bronstein

    BUENOS AIRES (Reuters) - Glencore Plc has bid $325 million for the minority stake in Argentine soy crushing plant Renova held by bankrupt family-owned company Vicentin, two sources close to the negotiations told Reuters.

    The Swiss commodities trader made an initial offer which expired at the end of March, the people said. It is now preparing to renew that offer, although the global coronavirus pandemic may impact the process, they added.

    Glencore and Vicentin declined to comment.

    Renova, with 20,000 tonnes of daily crushing capacity, is one of the world's top facilities for crushing soy, an all-important industry for Argentina. The South American grains powerhouse is the top exporter of soy-based feed used to nourish pork and poultry in markets concentrated in Europe and Asia.

    The sector, Argentina's key provider of export dollars, is critical as the South American country strives to pay its debts in the face of a recession made worse by the pandemic.

    The Renova crushing plant had been owned 50-50 by Glencore and Vicentin until the local company ran out of money late last year. Glencore bought an additional 16.7% of Renova in December - bringing its total stake to 66.7% - and is now angling to purchase the rest.

    Vicentin, founded in 1929, was once Argentina's top exporter of processed soy. It stopped crushing after defaulting on its debt but Glencore has continued paying Renova employees in anticipation of an eventual takeover, the sources said.

    The judge overseeing Vicentin's bankruptcy proceedings was informed of the $325 million bid weeks ago, under an understanding that the offer would expire at the end of March.

    "Glencore plans to renew its offer to Vicentin for the remaining shares of Renova," one of the sources with direct knowledge of the matter said, asking not to be named because the talks remained private.

    "They should end up working with the same $325 million bid they had last month," said the source, acknowledging that the coronavirus crisis will have to be taken into consideration, and may put downward pressure on the bid.

    The original bid had not been previously reported.

    A second industry source close to the talks who asked not to be named confirmed Glencore's bid was expected to be renewed.

    "Vicentin should be collecting $325 million from Glencore, and it is asking farmers to forgive half the debts owed to them by the company. Vicentin still has its crushing plant at San Lorenzo, which they can also sell or rent out," the person said.

    Like the Renova facility, Vicentin's San Lorenzo plant is located in the key agricultural export hub of Rosario.

    "Vicentin wants to restart crushing at Renova, but they will not be able to do any important volume of business before the sale of its remaining shares is settled," the source said.

    Vicentin went broke after going on a credit-fueled expansion last year. Argentine political uncertainties related to the October 2019 presidential election sparked a market crash and led international banks to pull back from the crisis-prone country, further pressuring the company.

    Vicentin has more than $300 million in commercial debt and more than $1 billion in loans from local and international banks. Once restructuring talks conclude with farmers, it is expected to start talks with the banks.

    https://finance.yahoo.com/news/exclusive-glencore-bids-325-million-113051120.html
     
  12. Marvan

    Marvan Well-Known Member

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    Glencore Mine Boss Seized at Zambian Airport Spells Trouble

    (Bloomberg) -- Nathan Bullock was about to fly home to his family in Australia when authorities blocked his exit at Zambia’s Lusaka airport, bundled him into a police car, and drove him six hours through the night back to the mine he manages. Police later camped outside his home.

    Bullock is at the center of a rapidly deteriorating row between the southern African nation’s government and Glencore Plc, the world’s biggest commodity trader. The conflict flared last week when Glencore said it was temporarily closing its giant Mopani mines as they hemorrhaged cash following a collapse in the copper price. Zambia said Glencore didn’t follow the proper legal procedures and threatened to cancel its mining licenses.

    The stakes are high for both parties. Zambia, heavily dependent on copper revenues, is on the brink of a debt crisis. For Glencore, it’s the latest headache at its African copper and cobalt assets. Spanning the copper belt that stretches north into the Democratic Republic of Congo, the mines are supposed to be a major growth driver, but have been beset by problems.

    There are also wider implications. Glencore is one of the last major western miners to control copper and cobalt operations in Congo and Zambia. Gradually its rivals have quit the region to be replaced by Chinese companies. As the world moves toward an era of electric vehicles, China is gaining increasing dominance over the supply chain.

    The Mopani mines are on the outskirts of Kitwe, a city about 180 miles north of Zambia’s capital, Lusaka. The mines have been troublesome for Glencore, but that hasn’t stopped the company from spending billions of dollars on sinking new shafts to try and almost triple copper production, to about 140,000 tons a year.

    Still, Mopani was unprofitable even before the coronavirus pandemic led to a collapse in the copper price, convincing Glencore that its best option was to mothball the mines for at least three months.

    Zambia responded with fury, detaining Bullock, chief executive of Glencore’s local unit. He had only been in the country since October, when he took over the Mopani unit. Bullock was released by the police, who on Friday camped outside his Kitwe residence “merely for his safety,” according to Richard Musukwa, the mines minister.

    Glencore said it’s in talks with Zambia on the way forward.

    Musukwa, who made the comments at a press briefing in Kitwe that was broadcast on local radio, asked for questions to be sent by text message, which he didn’t immediately respond to.

    It’s not the first time Zambia has taken a tough line with the companies that exploit its mineral wealth.

    Fifty years ago, Zambia’s first post-independence leader, Kenneth Kaunda, nationalized mines owned by Anglo American Plc and Roan Selection Trust to rally his political supporters. Now, the often-populist President Edgar Lungu may try to shore up support in the politically crucial Copperbelt province by fighting to keep Mopani operating.

    “Already under pressure, the mine closures would undermine President Edgar Lungu ahead of internal party elections and the 2021 national elections,” Eurasia Group analyst Connor Vasey wrote in a note. “They would also jeopardize Zambia’s broader economic stability.”

    A year ago, the government placed the local unit of Vedanta Resources Plc in provisional liquidation, accusing the company of lying about expansion plans and cheating on taxes. The belligerent approach has drawn criticism, including a letter this week from three former finance ministers and a central bank governor.

    “There is a growing image of Zambia as the ‘wild west’ where the application of the law and work of statutory bodies is arbitrary and political,” they wrote. “Who will invest in a country where assets can be seized, or contracts are irrelevant?”

    https://finance.yahoo.com/news/glencore-mine-boss-seized-zambian-230000492.html
     
  13. Intern shIp

    Intern shIp Member

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    https://www.miningweekly.com/articl...ions-at-chrome-vanadium-operations-2020-11-12
    Article from 52 minutes ago


    Mining group Glencore has issued a pre-qualifying tender for companies interested in supplying ‘alternative green’ electricity and storage solutions to its chrome and vanadium operations in South Africa.

    In the tender notice, Glencore Alloys states that the generation facilities should have a capacity to produce between 10 MW and 20 MW of electricity, with storage capacity of 1 MWh to 2 MWh.

    [​IMG]
    These generators and storage assets would be located on site at Eastern Chrome Mines, Rhovan Vanadium and Western Chrome Mines and should produce zero- or low-carbon energy for use by the operations.

    Glencore is aiming to prequalify companies that can fund, supply, build, own and operate the energy assets and says that it will accept offers from independent power producers, in the form of power purchase agreements, as well as from companies offering turnkey engineering, procurement and construction management solutions.

    [​IMG]
    The tender has been issued following a commitment by South Africa’s struggling ferrochrome industry to develop 750 MW of self-generation over the coming 36 months as part of a broader trade-off response to government’s decision to consider the imposition of an export tax on chrome ore.

    South Africa currently exports 13.6-million tonnes of chrome ore yearly, from total production of 22.7-million tonnes. Its share of the global ferrochrome market has declined to 27% from 39% in 2009, largely because electricity tariffs charged to the industry have surged by 523% over the past ten years.

    The proposed tax, which is controversial, would seek to ensure that South Africa’s ferrochrome manufacturers had a price advantage relative to ferrochrome firms in other jurisdictions, including China, the main market for exported South African ore.

    The Glencore Alloys tender comes amid a concerted push by other South African miners and heavy industrial firms to implement self-generation projects as a way of mitigating the risk of load-shedding and improving tariff-path certainty.

    Analysis by the Council for Scientific and Industrial Research (CSIR) indicates that 2020 has been the most intensive load-shedding year, with 1 734 GWh of rotational cuts having been implemented since January.

    The CSIR indicates that system inadequacy is likely to persist, largely because of a continuing decline in the performance of Eskom’s coal fleet, the energy availability factor of which fell to 66.9% in 2019, and has remained below the assumed 70% level during 2020.

    The science council is, thus, forecasting ongoing shortfalls over the coming few years and has indicated that ‘customer response at scale’, including though investing in self-generation, should be an immediate priority for reducing the risk of load-shedding.

    The Glencore Alloys tender also follows on from news that Bushveld Minerals is continuing to progress a hybrid minigrid project being developed at the Vametco vanadium mine, near Brits. The project comprises 3.5 MW of solar photovoltaic (PV) generation and 4 MWh of vanadium redox flow battery storage. Bushveld has appointed Abengoa to manage the engineering, procurement and construction of the project.

    Glencore Alloys says the technology solutions are not confined to solar PV, wind generators and lithium batteries, reporting that it will consider other solutions “with a very low or zero carbon footprint”.

    The closing date for submissions is 12:00 on November 26. [​IMG]
     
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  14. Marvan

    Marvan Well-Known Member

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