Tesla kills three birds with one Congolese stone 17 Jun 2020 The electric car giant is buying 6,000 tonnes of cobalt a year from Glencore’s mines in the chaotic African state. With China corralling 69% of the metal’s production, Elon Musk gets to guarantee supplies while minimising child labour worries. It may even squeeze Western rivals.
African phone-mast IPO is ready for safari 17 Sep 2019 London-based Helios Towers is dusting off last year’s plans to take its portfolio on the road. Places like Congo have improved politically, and growth prospects across the continent look worth the journey. A possible $2 billion valuation is in plain sight.
Ebola bonds are wonky way to tackle pandemics 13 Aug 2019 The World Bank-backed instruments are meant to use private capital to fight disease in poor countries. But their rather random structures create weird incentives for both issuer and buyer. As a way to tackle outbreaks, it’s not obvious they’re better than more direct charity.
Glencore unearths new grounds for cheap valuation 7 Aug 2019 The Swiss miner and trader had a bad six months, missing out on rising prices for iron ore while hit by lower ones for coal. Now it is mothballing its prized Congolese Mutanda mine. Chief Executive Ivan Glasenberg has to hope tighter supply buoys the right commodity markets.
Miners’ Congo optimism is post-Kabila sugar-rush 13 Feb 2019 Joseph Kabila’s exit as the African giant’s leader is generating some positive vibes. Reminders of Congo’s vast mineral potential are light relief for shareholders beaten down by government shenanigans. But they won’t help convince Kinshasa to treat the industry any better.
African miners get mix of red carpet and red card 8 Feb 2019 The continent can’t work out whether to shake hands with the sector, or shake its fist. Warm welcomes from Ghana, South Africa and Ethiopia contrast with the aggressive resource nationalism of Tanzania. A nasty slowdown there would bolster the open-door approach.
Chaotic election ruling raises Congo split risk 21 Jan 2019 The African nation’s top court rejected complaints by runner-up Martin Fayulu, who says the Dec. 30 vote result is fraudulent. Unofficial tallies say he is right. His supporters in Congo’s mining belt could now push for a split from Kinshasa – leaving cobalt supply in turmoil.
Congo’s post-Kabila chaos leaves miners in a hole 10 Jan 2019 Elections in the central African giant have produced a double surprise. Outgoing leader Joseph Kabila’s man lost. But so did a rival who led opinion polls and was favoured by mineral-rich regions. Unrest is likely, especially in Katanga, home to 60 percent of the world’s cobalt.
China moves a touch closer to EV driving seat 5 Dec 2018 Beijing has signed a new cobalt deal with Congo. The U.S. should already be antsy that its main strategic rival controls a third of what is a key component in electric vehicle batteries. Yet a scenario whereby China also acquires market leader Glencore’s share isn’t impossible.
Glencore offers glimpse of life after Glasenberg 3 Dec 2018 The commodities group shuffled its upper ranks in the most significant management overhaul in years. The departure of copper kingpin Telis Mistakidis and promotion of others is a first step towards reshaping the group to cope with the eventual departure of boss Ivan Glasenberg.
Congo vote has only bad outcomes for mining giants 28 Nov 2018 Joseph Kabila's chosen successor is set to win a presidential election due next month. He will remain in the wings, though. For Glencore and others, that offers little relief after a crippling 2018. Worse, it may mean competing power centres that catch miners in the crossfire.
African miner deals deserve state-fleece discount 1 Oct 2018 Democratic Republic of Congo claims Barrick’s $6.5 bln Randgold deal means it owes the government money. Two years ago, Kinshasa extracted $100 mln when Freeport sold out. Investors should be discounting their synergy estimates to reflect the risk of something similar.
China and Africa struggle to kick debt habit 3 Sep 2018 President Xi Jinping pledged another $60 bln to the continent while warning against the kind of binges that have led countries to default. Yet Africa shows no sign of restraint, and China’s lending remains opaque. Accusations of debt-trap diplomacy are likely to linger.
Viewsroom: Trump’s Supreme Court pick 12 Jul 2018 The U.S. president has chosen a friend of big business in Brett Kavanaugh. But he faces bigger questions from Senate democrats about executive power. Plus: Commodity giant Glencore faces mounting risks in Washington, and what’s behind the Chinese yuan’s downward slide.
Glencore Congo settlement is a calculated risk 15 Jun 2018 Paying royalties to Israeli businessman Dan Gertler in euros rather than dollars helps solve the commodities giant’s headache in the African country, while avoiding falling foul of American sanctions. The danger, though, is that the United States changes the goalposts.
Glencore solves least troubling Congo problem 13 Jun 2018 A debt-for-equity swap at a DRC unit settles a thorny dispute with state miner Gecamines. But the $74 bln resources giant is no nearer to a deal on the country's burdensome new mining code. Heightened uncertainty over upcoming presidential elections only adds to the discomfort.
Glencore can dig its way out of Kinshasa quagmire 30 Apr 2018 A former partner is threatening to freeze two of the $71 bln commodity giant's operations in Congo, demanding $3 bln. It's the latest in a list of woes in the African country, including a tough new mining code. But the 6 pct drop in the stock over the past week is overblown.
Congo digs deep hole with overhaul of mining law 8 Mar 2018 The world's top cobalt producer is right to update rules written after a ruinous war. But the dramatic shift to bring in more taxes also reneges on an earlier promised 10-year "stability clause". Unpredictable swings damage an already battered image, and put investment at risk.
Glencore is a weather vane for mining M&A 21 Feb 2018 The Swiss commodity group’s once-swollen net debt is below cash flow, but it will only decide later this year whether to hike dividends further. That leaves CEO Ivan Glasenberg scope to look for deals. If Glencore can’t find any decent ones, its peers probably won’t either.
Cobalt tax grab will send carmakers on a diversion 12 Jan 2018 The Democratic Republic of Congo, supplier of two-thirds of the world's cobalt, aims to more than double royalty charges. That's bad news for electric cars: the metal is a key battery ingredient. The move could backfire, however, by accelerating exploration of alternatives.