Could a joint venture for Hartree Partners and Wanxiang Resources be on the cards?
According to sources from Reuters...
Are privately owned Hartree Partners and Wanxiang Resources setting up a commodities trading joint venture in China?
According to sources from Reuters, that’s exactly what’s happening.
Based in Shanghai and expected to be up and running this year, the venture would represent a further step in Hartree’s bid to branch out from its core energy markets into base and ferrous metals, coal and agricultural commodities.
With neither company confirming or denying the JV, we are left to wonder.
But here’s what we know about Hartree Partners and Wanxiang Resources.
Joint venture at the heart of Hartree
Hartree was established in 1997 as Hess Energy Trading Company (HETCO) which in turn was a joint venture between Hess Corporation and Stephen Hendal and Stephen Semlitz – the founding partners of the company.
It wasn’t until 2014, in which Oaktree Capital acquired Hess Corporation’s interests in HETCO and the new company took on the name Hartree Partners, LP.
The company is a global merchant commodities firm specialising in energy and its associated industries – hence the JV into the metals and coal industries.
Hartree has a global reach spanning 10 offices and approximately 85 traders and originators.
Th growing influence of Wanxiang
Established in 1969, Wanxiang was one of the 120 experimental enterprises chosen by the Chinese State Council.
The company is part of the Wanxiang Group, which focuses on the sustainable development of enterprises. Aiming at developing its information-based management, marketable capital, global service network, world-wide cooperation, and international brand, the Wanxiang Resources trades Base metals and Ferrous Metals in various fields including automobile parts manufacturing, high-tech agriculture, aquaculture as well as supplying new energy, promising to supply high-quality services to customers through a global network.
Wanxiang Resources is one of the major participants in the flow of natural resources in and out of China. It provides logistics, financing and other supply chain services to producers and consumers of commodities.
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Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
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The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
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Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.