Glencore clinches Xstrata take-over with Chinese copper deal
Glencore, the world’s largest minerals trader, is to sell the Las Bambas copper mine in Peru, thus satisifying conditions imposed by the Chinese government, and removing the fnial obstacle to its takeover of Xstrata plc. As a result, Xstrata’s founder and CEO, Mick Davis, has been ousted, along with a number of his company’s divisional managers. This is a triumph for Glencore’s top-dog, Ivan Glasenberg, in his quest to forge one of the world’s top mining companies since the firm was listed on the London Stock Exchange in 2011. However, as noted by Reuters on 16 April 2013: “Glencore…has made no secret of its desire to slash the number of Xstrata mines being built from scratch”, instead relying on increased output from already-productive pits.
See http://www.minesandcommunities.org/article.php?a=12252.
More trouble for Xstrata in the Philippines
Local community representatives, supported by NGOs and left-wing political parties, are challenging the constitutionality of the 1995 Mining Act, with particular reference to its failure at sharing any benefits from mining. This follows the earlier attempt by the La Bugal B’laan to overturn the 100% foreign ownership provision within the Act. These are not the only challenges now faced by the country’s mining sector. Despite the Presidential Executive Order, meant to ‘kick-start’ the industry, business confidence remains low. Xstrata’s infamous Tampakan project could also be subjected to further delay, for a number of reasons.
See http://www.minesandcommunities.org/article.php?a=12239.