May 17, 2020

Glencore’s CEO loses $500 million in one day

Ivan Glasenberg
2 min
Glencore’s CEO loses $500 million in one day
Ivan Glasenberg, the CEO of the worlds largest commodity trading and mining company, reportedly lost $500 million on Monday as shares for Glencore hit r...

Ivan Glasenberg, the CEO of the world’s largest commodity trading and mining company, reportedly lost $500 million on Monday as shares for Glencore hit record lows—falling 30 percent—after analysts raised fears about lower metal prices.

Shares for Glencore are down nearly 90 percent since the company’s listing in 2011, and Glasenberg’s fortune are following suit. The CEO has lost 74 percent of his net worth so far this year, and 81 percent since July 2014. As of Monday, the CEO is worth $1.4 billion, compared to $1.9 billion he had on Friday.

Concerns over low commodity prices continue to cripple Glencore and its debt-laden balance sheet. According to the Wall Street Journal, the company’s blend of mining and trading operation is actually a flaw and investors are concerned about the high levels of debt Glencore’s trading arm is accruing.  

“They’d touted the trading business as being a less cyclical business that would stabilize the more cyclical mining business,” said Craig Pirrong, finance professor and commodity expert at the University of Houston. “But what’s happened is the extreme cyclicality of the mining business has compromised its viability as a trading company.

In addition to Glasenberg’s $500 million single-day loss, the two other executives of Glencore – Daniel Mate and Telis Mistakidis – lost a combined $400 million on Monday as well. 

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

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.

Global energy transition is boosting the market for nickel

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.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

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.

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