Glencore plc
Glencore plc
Full text is available to Level 2 subscribers only
Subscribe to Mining Business Media
Mining Business Media's unique blend of global mining sector news and commentary is available by subscription only.
$A275 per year (1-10 users)
(GST included in Australia)
Direct debit/cheque/credit card:
Click here
Subscription inquiries, email subscribe@miningbusiness.net or call 61+413 772 044.
Related Content
It's an area better known for the long-closed Mary Kathleen uranium mine next door, but Hammer Metals and Glencore subsidiary Mount Isa Mines are focused high-grade copper-gold targets in their new JV over EPM 14467, 60km E of Mount Isa.
Negotiation of JV terms was a condition of Hammer's acquisition of the 51% interest in the tenement held by AuKing Mining for the issue of 250,000 shares.
CEO Alexander Hewlett says Hammer has completed the acquisition of AuKing's interests in the Mount Isa region, giving it 3,200sq km including copper-gold, uranium and rare earth resources.
The Democratic Republic of Congo govt has reinstated a value added tax on mining company imports, part of what miners say is a deteriorating business climate, according to the country’s chamber of mines, Reuters reports.
The govt had agreed to suspend the tax for a year in July 2016 to help companies during a commodity price downturn and pay down around $US700M in VAT reimbursements owed to the companies, including Glencore, Randgold Resources and China Molybdenum.
In a June 2017 half (H1 17) Glencore CEO Ivan Glasenberg describes as seeing “the best global economic growth momentum in recent years,” the big global natural resources producer/marketer has lifted net income to $US2.5B from H1 16’s $369M loss and FY16’s positive $1.37B.
The group’s assets, spanning about 150 mining and metallurgical sites, oil production and agricultural facilities, pushed adjusted EBITDA up 68% to $6.74B, adjusted EBIT up 344% to $3.8B and funds from operations up 88% to $5.2B.
Glencore has again signalled it is in no particular rush to give the go-ahead for development of a multi-billion dollar thermal coal export project in Australia's Surat Basin despite the long-awaited award of its mining licences
Glencore could still be far away from a development decision on its potential 22Mtpa Wandoan thermal coal project in Australia despite being granted three 27-year mining leases.
It's taken 10 years for the Qld state govt to award the leases over 32,000ha of the Surat Basin, but the project has been on hold since 2013.
Pointing out it would require a multi-billion dollar capital investment for the mine and related rail infrastructure, Glencore says it will bring on additional large scale projects only if market conditions support it.
A record setting 10% increase in ferrochrome/chrome production from Merafe Resources’ 20.5% stake in the Glencore Merafe Chrome Venture in South Africa has seen the company lift June 2017 half (H1 17) after tax profit to R486.6M from H1 16’s R57.3M.
It’s been a good H1 17 for chrome/ferrochrome partner Merafe Resources – record prodn for a big profit jump to R486.6M
The three Hunter Valley Operations being acquired by Yancoal Australia will be managed and operated in close relationship with the nearby Glencore mines under the $US1.14B JV agreement between the two companies.
Glencore will hold 49% of the JV while nominating its general manager and 3 of the 6 members of its management committee after paying $US429M to Yancoal for 16.6% of the interest it is acquiring from Rio Tinto and $710M to Mitsubishi Developers for its 32.4% stake.
The lesson for today is: don't ever doubt Glencore's capacity to get whatever it wants. It wanted control of the Hunter Valley Operations formerly owned by Rio Tinto subsidiary Coal & Allied, and that's just what it has gained in a new agreement with Yancoal Australia.
Just a month after it missed out in the bidding war for Rio Tinto's Coal & Allied business in NSW, Australia, Glencore has reached agreement with Yancoal Australia to acquire a 49% JV interest in the Hunter Valley Operations.
Glencore will acquire a 16.6% direct interest in HVO and jointly with Yancoal will buy the 32.4% HVO stake owned by Mitsubishi Development.
It will pay $US1.14M plus 27.9% of $240M non-contingent royalties over 5 years and 49% of price contingent royalties payable by Yancoal to Rio Tinto.