Yesterday, 5:29 PM
- Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) Chemoil bunker fuel unit agrees to pay a $27M civil penalty, the highest ever in such a case, and retire ~65M renewable fuel credits, the U.S. Department of Justice says.
- The DoJ and EPA alleged that Chemoil exported at least 48.5M gallons of biodiesel from the U.S. during 2011-13 but failed to retire the associated RINs generated for the exported fuel.
- A New York-based products trader tells Reuters that the penalty likely will strengthen a rally in diesel prices, including ultra-low sulfur diesel futures.
Tue, Sep. 27, 8:50 AM
- China’s Shandong Gold has emerged as the lead bidder for Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) Vasilkovskoye gold mine in Kazakhstan, which may fetch ~$2B in a sale, Bloomberg reports.
- Glencore is still weighing all options for the asset, including a sale or streaming deal, according to the report.
- Glencore has been been selling assets and cutting costs as part of an effort to reduce debt to $16.5B by year-end, while Chinese mining deals have nearly tripled YTD to $27B compared with the same period last year.
Thu, Sep. 15, 12:47 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will have some short-term delays in its coking coal shipments from Queensland's Bowen basin in Australia after a train derailment over the weekend, which could further propel coal prices that have nearly doubled since early August.
- The freight operator says the derailment caused major infrastructure damage but expects service to resumed on Sept. 19.
- BHP Billiton (NYSE:BHP), which is among the coal miners operating in the Bowen region, says any impact on its operations would be reported in its next quarterly review.
- Prices for coking coal, used primarily to heat iron ore during steel making, already have more than doubled since the end of May, partly on large curtailments of China's supply.
Thu, Sep. 8, 12:17 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Australia's Origin Energy (OTC:OGFGF) have put their Chilean hydropower business Energia Austral in Chile up for sale, Reuters reports.
- Energia Austral includes three hydropower projects with a capacity of 1K MW, with the Cuervo asset the biggest at 550 MW, making it the third-largest hydropower source in Chile.
- Energia Austral is 66% owned by Glencore and 34% owned by Origin; both companies are seeking to pay down debt.
Wed, Aug. 24, 7:40 AM
Wed, Aug. 24, 4:06 AM
- Glencore's (OTCPK:GLCNF) H1 adjusted net profit slumped two thirds to $300M and missed consensus of $318M.
- Adjusted underlying profit (EBITDA) fell 13% to $4B.
- Still, Glencore has cut debt to $23.6B by divesting assets and today said that it's agreed to sell future output from an Australian gold and copper mine for $670M to Evolution Mining (OTCPK:CAHPF).
- Glencore also set a new target of reduce debt to $16.5-17.5B by the end of year vs a previous aim of $17-18B.
- Shares are -2.6% in London. (PR)
Mon, Aug. 22, 11:25 AM
- Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) decision to cut zinc output to fight a rout in prices last year has been vindicated as the metal has rallied in 2016, Morgan Stanley analysts say, while also holding out the possibility that the company may order restarts.
- Zinc prices “may be supported/lifted, if China’s steel-production rate remains at around 800 million tons per year into 2017. Conversely, the most likely short-term price cap for zinc is the reactivation of Glencore’s dormant mining capability,” the firm says.
- Zinc has climbed 42% YTD as Glencore's Q2 zinc production fell 33% Y/Y, and Stanley still considers the metal its top pick among commodities.
Mon, Aug. 15, 9:57 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) says it will start arbitration proceedings against Bolivia over the nationalization of three of its operations in the country dating back to 2007.
- Glencore says it was forced into action after nearly nine years of negotiations with the government had not resulted in any compensation for the nationalization.
- Bolivian Pres. Morales has raised taxes and seized mines, oil refineries and power companies since taking power in 2006.
Fri, Aug. 12, 4:55 PM
- Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) bid to sell its Barro Alto nickel mine in Brazil has stalled because bids from potential suitors fell short of the valuation sought by the company, Bloomberg reports.
- The mine has attracted interest from companies including Glencore (OTCPK:GLCNF, OTCPK:GLNCY), X2 Resources and Sherritt International (OTCPK:SHERF), according to the report.
- Anglo wants to raise more than $3B from asset sales as part of a plan to cut debt below $10B by the end of the year.
Thu, Aug. 11, 5:53 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) has abandoned plans to sell its Lomas Bayas copper mine in Chile that was expected to fetch ~$500M, Reuters reports.
- Glencore was not able to achieve a high enough price, and the company now believes it is in a stronger footing than when it started the sale process last year and is no longer compelled to make a sale at any cost, according to the report.
- Lomas Bayas produces ~75K metric tons/year of copper cathode.
Thu, Aug. 11, 5:16 AM
- Glencore (OTCPK:GLNCY) reported a significant fall in output for most of its products in the first half of the year after closing mines in response to a rout in prices.
- Production of copper, which made up most of its revenue, dropped 4% while coal saw a 14% decline and zinc a 31% tumble.
- Glencore also increased its full-year estimate for copper output due to strong performance from its Collahuasi mine and trimmed its coal prediction.
Fri, Aug. 5, 9:52 AM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) halts production at all its operations in Zambia after four miners were killed in separate accidents.
- The company's Mopani Copper Mines suspended production at its Mufulira underground mine after three miners were electrocuted and another miner was killed last week in an accident at a shaft in Kitwe.
- Glencore is investing more than $1.1B in Zambia to sink three shafts with new technology that will extend mine life by more than 25 years.
Wed, Aug. 3, 8:44 AM
- A consortium led by Apollo Global Management (NYSE:APO) has emerged as the front-runner for Anglo American's (OTCPK:AAUKF, OTCPK:AAUKY) Australian met coal mines, valued at as much as $1.5B, Reuters reports.
- APO has teamed up with energy-focused P-E firm Riverstone Holdings and Pennsylvania coal exporter Xcoal Energy & Resources, and is on site finalizing details of the deal, according to the report.
- Reuters previously reported that BHP Billiton (NYSE:BHP) and Glencore (OTCPK:GLCNF, OTCPK:GLNCY) as well as suitors from China, Japan and India were looking at the assets.
Tue, Jul. 26, 10:23 AM
- Three of the world's top five miners will need to step up asset sales in this year's H2 to meet a $14B full-year target as they race to cut debt, Reuters reports.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY), Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) and Vale (NYSE:VALE) have $5.4B from asset sales, far short of their target, delaying efforts to reduce debt and improved their credit ratings.
- Asset sales lost steam amid the H1 rebound in commodity prices, as iron ore and coal prices rallied ~30% and copper prices rose ~7%, easing the sense of urgency for sellers while bidders waited for the rallies to fizzle, but most analysts and investors expect prices to fall during H2, as iron ore, coal and copper markets remain oversupplied.
- Vale, which hopes to sell up to $5B worth of assets this year, may come under more pressure as so far it has only fetched $269M from the sale of three iron ore carriers, while Glencore and Anglo appear to be more on track toward their respective goals of $4B-$5B and $3B in asset sales this year.
- BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) are considered well placed to buy assets, with interest in copper, but both have been surprised at the high prices that copper assets have fetched so far.
Mon, Jul. 25, 5:25 PM
- Glencore’s (OTCPK:GLCNF, OTCPK:GLNCY) stake in Russneft is set to be heavily diluted as oligarch founder Mikhail Gutseriev moves to restructure the Russian oil group's debt and reinforce his controlling position, Financial Times reports.
- Once Gutseriev completes the process of swapping $1B of debt owed to another of his companies into new shares in Russneft, his stake in the oil company will reach nearly 75% while Glencore’s will be cut to 25% plus one share, down from 46% at the start of the year.
Fri, Jul. 22, 8:58 AM
- Bidders for Anglo American’s (OTCPK:AAUKF, OTCPK:AAUKY) Australian metallurgical coal assets, including mines in Queensland that could fetch up to $1.5B, are in talks with banks for acquisition financing, Bloomberg reports.
- Coronado Coal and AMCI Capital are competing for Anglo’s Moranbah and Grosvenor mines with BHP Billiton (NYSE:BHP), which bid through its coal joint venture with Mitsubishi, according to the report, which adds that a group led by Glencore (OTCPK:GLCNF, OTCPK:GLNCY) has dropped out.
- Anglo CEO Mark Cutifani wants to raise $3B-$4B from asset sales to reduce debt and refocus the company as a miner of diamonds, platinum and copper.