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Glencore suit-stuffer criticizes peers
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Mining Companies / Stocks
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TOPIC: Glencore suit-stuffer criticizes peers
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Glencore suit-stuffer criticizes peers 1 Year, 9 Months ago Karma: 268
Readers here know I despise mining Oligarch, Glencore International. It epitomizes the vulture-mentality and rape-and-pillage model of mining which has EARNED the world's large-cap miners their very, very LOW reputations with peoples all over the world.

On top of that, the suit-stuffers who run these companies spend more time KISSING THE ASSES of bankers (and listening to their bullshit) than they do in actually trying to find and dig ore out of the ground. So I was ready to vomit when the banker-loving CEO of Glencore "berated" his fellow mining company CEO's for "building too many mines" and thus (supposedly) there is "too much metal" in the world.

In FACT, it is the psychopathic BANKSTERS (whom this suit-stuffer worships) who destroyed demand by crippling the global economy with their own FINANCIAL raping-and-pillaging.

More generally, this is another classic example of the propaganda machine identifying a "problem" -- and then being absolutely, 100%-wrong both in identifying the actual cause of the problem, and (of course) in labeling the real Villains.

...which is why I despise the mainstream media talking-heads too.




Glencore’s Glasenberg Berates Mining CEOs for Building New Mines

www.bloomberg.com/news/2013-02-25/glenco...lding-new-mines.html

Glencore International Plc (GLEN) Chief Executive Officer Ivan Glasenberg criticized his recently departed mining CEO peers for swamping the industry with new mines that led to a surplus in metals and trimmed profits.

“The big guys really screwed up,” Glasenberg, 56, told investors today in a presentation. “We’ve always been wanting to keep building and keep putting the cash which we generate into new assets. That’s what we’ve got to stop doing as a mining industry. We’ve got to learn about demand and supply.”

The biggest mining companies including BHP Billiton Ltd. (BHP), Rio Tinto Group (RIO) and Anglo American Plc (AAL) reported lower profits this month on rising costs and waning global growth. The CEOs of those three have quit or announced plans to go after investors criticized them for takeovers that were later written down.

“CEOs of all the mining companies have lost their jobs,” Glasenberg told the BMO Capital Markets conference in Hollywood, Florida. “Now we have a new generation of CEOs. I hope CEOs have learnt their lesson. They built, they didn’t get the returns for their shareholders. It’s time to stop building.”

Glasenberg, a 28-year veteran of Glencore, took over as CEO in 2002 and pursued a strategy of growth by acquisition. Since a $10 billion initial public offering in 2011, he has agreed a $34 billion all-share deal to buy Xstrata Plc (XTA) to add mines and smelters, and completed a C$6.1 billion ($5.9 billion) takeover of Viterra Inc. in December to boost agriculture operations.
Higher Prices

Stalling development of new mines will help prolong higher prices for commodities, the former accountant and coal trader said. He is Glencore’s biggest holder with about 15.5 percent.

“We will get better returns on our investments, we will be able to kick out more cash to our shareholders,” he said. “We will be late to invest. So, who cares? We’ll be late and we’ll have to invest in five years’ time. It’ll take us three years to build the mine but we could hopefully have an eight-year run.”

Glencore rose 2.2 percent to close at 381.95 pence in London, valuing it at 27.1 billion pounds ($41 billion).

Combining with Xstrata, the company will have interests in about 35 coal mines in Colombia, Africa and Australia, and make up about 10 percent of global seaborne exports of the fuel.

It will be the world’s third-biggest producer of mined copper, the largest zinc miner, and the biggest exporter of coal burned by power stations. The group will have about 11 percent of the 13 million metric-ton global zinc market and about 40 percent of the 1.9 million tons of the metal produced in Europe.

Glencore hopes to get final regulatory approval for the Xstrata takeover from China by a March 15 deadline, Glasenberg said, adding that he doesn’t think Xstrata’s 25 percent stake in Lonmin Plc is a “long-term asset” for the next company.

“I hope we are in a new paradigm in the mining industry,” Glasenberg said. “I hope that the mining engineers who previously ran these major companies are not just gung ho to build new mines because of what’s happened in the past.”
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