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It’s hard being listed, huh?
In his first television interview, Glasenberg said that Glencore took corporate responsibility seriously, saying: “We care about the environment. We care about the local communities.” Read more
The Scheme will be subject to the following conditions:
2.1 its approval by a majority in number of the Scheme Shareholders who are on the register of members of Xstrata at the Scheme Voting Record Time, and who are present and vote, whether in person or by proxy, at the Court Meeting and at any separate class meeting which may be required (or any adjournment thereof) and who represent not less than 75 per cent. in value of the Scheme Shares held by those Scheme Shareholders; Read more
Rio Tinto, one of the world’s largest natural resources companies, has warned that some of its customers were asking to delay shipments of metals, the FT reports. The warning represents a marked shift in industry sentiment from only six weeks ago, when most miners, commodities traders and oil groups painted a bullish outlook for commodities demand and prices despite falling equity markets. “It is noticeable that markets are somewhat weaker,” said Rio Tinto chief executive Tom Albanese in an interview. “In a few cases, customers are asking to reschedule deliveries. “This is consistent with customers being cautious about the current state of business.” Read more
A narrow win for a left-winger in Peru’s presidential election sent mining stocks exposed to the country reeling and caused its stock exchange to fall 12 per cent, the FT says. Ollanta Humala, a former coup leader, has previously suggested that mining companies could face a 40 per cent windfall tax on operations in Peru, which is the world’s second-biggest copper producer after Chile. Humala has however promised to lead a government of ‘national consensus’ and distanced himself from the radical socialism espoused by Venezuela’s Hugo Chávez. FT Tilt has a full round-up of analyst reactions to the election result. Read more
Shares in mining companies operating in Peru fell sharply on Monday after a leftwing former coup leader won a narrow victory in the country’s presidential election, reports the FT. Grupo Mexico, a metals mining company with operations in Peru, fell 8 per cent in New York trading. Hochschild, a silver miner, and Southern Copper Corp, tumbled 5 per cent and 11.3 per cent respectively. Shares in Xstrata, which is building one of Peru’s biggest mines, were off 0.86 per cent, while Volcan Compañía Minera, in which Glencore has a stake, fell 8 per cent. Ollanta Humala’s victory has provoked widespread fears he would lead a wave of nationalisations and higher taxes on foreign companies. Mr Humala has suggested Peru could impose a windfall tax of up to 40 per cent on mining companies, and also raise the 30 per cent rate that miners currently pay. Trading was suspended after Peru’s stock market plunged more than 12 per cent. The precipitous fall dragged down other markets from Chile to Mexico. BHP Billiton, Rio Tinto and Anglo American, all of which do not have Peruvian operations, escaped the sell-off. Read more
Markets were enduring a classic “risk off” session as traders were rattled by evidence of slowing growth in China and the debilitating irritant that is the eurozone fiscal crisis, the FT’s global market overview reports. The FTSE All-World equity index was down 1.1 per cent and industrial commodities were sliding. US stock futures pointed to Wall Street opening lower by 1 per cent, starting a fourth consecutive week of declines, while the FTSE Eurofirst 300 was down 1.3 per cent as miners, financials and technology groups saw sellers. Investors were seeking the refuge of the dollar, Swiss franc, Treasuries and gold. A clue to the session’s risk aversion was being provided by the euro, which was down 0.9 per cent to $1.4008 and had hit a record low against the Swiss franc of SFr1.2352. Read more
A nasty stasis in shares in E.ON, RWE and EDF at pixel time:
Xstrata has sent a strong signal it expects eventually either to merge with Glencore or for the commodities trading group to sell its stake in the miner, the FT reports. Mick Davis, Xstrata chief executive, told analysts that for both Glencore and his company to be independently listed was “unsustainable in the longer term”. The comments were made in early February at a meeting after Xstrata’s results but came to light on Monday in a HSBC research note. Glencore is preparing an initial public offering in the second quarter of the year which analysts expect to value the trader at more than $60bn — but they also warn that Glencore could instead merge with Xstrata at the last minute. Read more
Ructions in Centamin Egypt shares at pixel time (via Reuters):
BHP Billiton, Rio Tinto and Vale, the world’s three largest mining companies, are set for record profit totalling $52bn as they accelerate earnings growth at the expense of their biggest customers, reports Bloomberg. The companies, also the top iron-ore exporters, may post an average 66% jump in the annual earnings they report this year compared with 2007, according to analyst estimates compiled by Bloomberg. In contrast, ArcelorMittal, Baoshan Iron & Steel, Posco and Nippon Steel, the largest listed steelmakers, may see an average 31% slump in profit over the same period. The contrasting fortunes are set to widen further this half if steelmakers fail to pass on rising iron ore and coal costs, forecast to peak in the second quarter, said Bank of America Merrill Lynch. Read more
A little bit of takeover tussle Down Under highlights the long-held ambitions of Anglo-Swiss miner Xstrata to add iron ore to its coal and metals-focused businesses.
Not only that, Xstrata’s hot pursuit since August of Australia’s Sphere Minerals (in which it holds an 8.15 per cent stake) sends a clear sign that the earlier hysteria among big miners — domestic and foreign — over investing in Australian resources companies amid fears of a mining ‘supertax’, is all in the past under the new Gillard government. Read more
The Australian government has scrapped a proposed resources ‘super-tax’ for a more moderate version, removing a cloud of uncertainty over the country’s mining sector, reports the FT. Mining companies had shelved around $186bn of investments in the economy as part of their opposition to the tax, which Australia’s new prime minister Julia Gillard has modified to cover fewer commodities, and to remove retrospectivity. Read more
Australia’s proposed mining super-tax — unlike the prime minister who launched it — appears to be sticking round. Kevin Rudd’s successor Julia Gillard, is cut from the same Australian Labor Party cloth, which doesn’t bode well for BHP Billiton, Xstrata and Rio Tinto, who all have heavy (and heavily taxable) Australian mining exposure, FT Alphaville says. Read more
Financial services professionals in Australia might do better if they ditched their spreadsheets for hard hats, because according to Bloomberg, the real money is in mining. But as FT Alphaville points out, miners — like bankers — will find their incomes hit by a sharp tax increase. Read more