Mining

Anglo’s tricky fertiliser bet has political hedge

8 January 2020

The miner is sinking $500 mln to buy Sirius’ troubled potash project in northern England. It will need to stump up an extra $3 bln to extract the mineral, whose price is murky. At least PM Boris Johnson, keen to revive poorer UK regions, should support Anglo American’s plan.

Glencore’s new probe applies shove to succession

5 December 2019

British police are investigating possible bribery at the commodity giant. Two days ago 62-year-old boss Ivan Glasenberg, whose firm also faces a U.S. probe, said he could retire next year. Having to fight a legal war on two fronts may help him make up his mind.

ArcelorMittal win will help India heal debt wounds

15 November 2019

The country’s top court squashed a decision that threatened the steelmaker’s $6 bln bid for Essar through a new bankruptcy regime. The Mittal family’s homecoming can go ahead. It’s also a timely boost for lenders and investors needed to re-energise the flagging economy.

BHP boss hands over big shovel to successor

14 November 2019

Andrew Mackenzie departs the world's largest miner next month, leaving it in better shape than he found it. Veteran Mike Henry will face fresh challenges. He must make and sell a decision on a $20 bln potash project, and steer the steel ingredient producer into a greener era.

ArcelorMittal gets convenient alibi for Italexit

8 November 2019

The steel giant wants to pull out from an agreed purchase of top European plant Ilva, blaming its loss of legal immunity. Quitting would spare ArcelorMittal the cost of upgrading the toxic site. That’s handy while global steel consumption is seen to be falling.

Mongolia’s coal IPO squeezes through narrow hole

6 November 2019

Ulaanbaatar has picked advisers to list part of its prize mine. It's a tough sell: a landlocked deposit with only one market, a history of political meddling and a decade of false starts. Still, Chinese backing and an upcoming election might help Mongolia pull it off this time.

Restive Chile squeezes copper’s big short

23 October 2019

Violent protests halted work at the world's largest mine for the red metal, adding to disruptions elsewhere. The price of copper, however, is not far off a 2019 low, and the market anticipates further weakness. Pessimistic noise on global trade is drowning out supply signals.

Chile protests give investors a rude awakening

21 October 2019

Latin America’s golden child erupted in violence this past weekend over a subway-fare hike. Its economy seems strong for an emerging market, but the unrest comes amid slowing growth, a weakened currency and a feeble copper market. Bondholders aren’t pricing in the risks.

India’s coal-fired growth requires some shovelling

30 August 2019

New Delhi, trying to juice the economy, will allow 100% foreign investment in the fuel. Local demand is rising, but resource giants have had bad experiences on the ground, and big miners are pulling out of thermal coal. India will have to work hard to make its tardy policy work.

BHP boss makes himself tougher act to follow

20 August 2019

The miner reported a record $3.9 bln final dividend alongside its highest earnings in five years. Even as CEO Andrew Mackenzie conserves cash ahead of economic clouds and the end of his tenure, he has fulfilled shareholder return pledges. Any successor will face harder choices.

Iron ore feels the pinch of Beijing’s restraint

15 August 2019

Prices of the steel ingredient have cooled, as a supply squeeze fades but a hoped-for Chinese boost to demand remains elusive. Mainland growth is lacklustre, but construction has yet to rev up in response. Stimulus this time may not mean more bridges: bad news for Rio and peers.

Fickle nickel sends out false value signal

9 August 2019

The metal is at its priciest since 2018 having surged 50% this year, more than other key battery materials. The spike, though, rests on misplaced optimism on Chinese growth, and speculation that an Indonesian ban could curtail supply. Producers like Vale can hold off celebrating.

Glencore unearths new grounds for cheap valuation

7 August 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.

Glencore coal split could scratch multiple itches

2 August 2019

The $42 bln giant is the largest thermal coal exporter, at a time when miners are under growing pressure to clean up. Splitting out that business would help, and can also lift a depressed valuation. It might even make sense for boss Ivan Glasenberg to lead the carve-out himself.

Rio’s shiny profit masks a less lustrous reality

1 August 2019

The miner reported solid earnings, seasoned with a $1 bln special dividend. The detail is a bit more tarnished: iron ore operations are feeling the strain from years of cuts, and a Mongolian mine has underwhelmed. Investors love cash, but Rio also needs to invest in what it has.

Indian mogul’s ode to Anglo ends on duff note

26 July 2019

Anil Agarwal is dumping his roughly 20% stake in miner Anglo American. The complex holding structure, dubbed “poems” by creator JPMorgan, meant he only partly profited as the target’s shares soared. The bigger prize, meshing it with his Vedanta empire, also proved elusive.

Barrick CEO lets hard image slip for sensible deal

19 July 2019

Mark Bristow will, after all, pay up to buy out 36% of Acacia Mining in a transaction worth over 50% more than the gold miner’s offer in May. It’s a small victory for minority owners, whose company is under fire from Tanzania’s government. But for everyone, it beats a standoff.

Miner exits shift coal spotlight to Anglo American

16 July 2019

BHP is the latest heavyweight to consider a sale of thermal coal assets. That's sensible given weak prices, pressure from investors and a business that is barely material. Anglo's bigger exposure means a tougher choice - with few buyers, there’s a case for staying the course.

Rio sounds copper warning from Mongolian steppe

16 July 2019

The miner's flagship Oyu Tolgoi expansion will be up to 30 months late, and could cost as much as a third more than planned. It’s a fresh blow to a project that has been bruised by local politics. The latest snag is a reminder of why the red metal has become so hard to dig up.

Congo deaths are a new stick to beat Glencore

27 June 2019

The Swiss commodity giant’s shares fell 5% after an accident killed dozens of illegal miners at one of its DRC pits. It’s difficult for resource groups to stop these incursions. But Kinshasa’s record of miner shakedowns implies it might still find a way to penalise Glencore.