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Glencore is one of the world's largest commodities traders, active in markets for metals and minerals, energy products, and agricultural goods. The firm's Marketing business provides sourcing, logistics, transportation, storage, and financing services to commodity producers and consumers around the globe. Core exposures are in the production of thermal coal, coking coal, copper, zinc, nickel, cobalt, and ferroalloys. Unlike other major miners, Glencore plans to produce thermal coal until its mines exhaust, arguing that it is better for listed, western companies to own these assets and then rehabilitate them consistent with western standards. It also expanded its coking coal exposure via the purchase of 77% of Teck's metallurgical coal business in July 2024.

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Billionaire and former Glencore CEO Alex Beard charged with corruption in UK along with four others, accused of making corrupt payments in West Africa.A British billionaire who made a fortune while working for a top commodities company was charged with corruption on Thursday.

Mining Billionaire Charged With Corruption In British Court: What You Need To Know

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Most of us have heard the dictum &#34;the trend is your friend.&#34; And this is undeniably the key to success when it comes to short-term investing or trading. But it isn&#39;t easy to ensure the sustainability of a trend and profit from it.

Here&#39;s What Could Help Glencore Maintain Its Recent Price Strength

Glencore PLC

Billionaire and former Glencore CEO Alex Beard charged with corruption in UK along with four others, accused of making corrupt payments in West Africa.
A British billionaire who made a fortune while working for a top commodities company was charged with corruption on Thursday. The company previously <a href="https://www.benzinga.com/government/22/05/27390214/commodity-trader-glencore-looks-to-settle-bribery-market-manipulation-charges-by-paying-penalties-up">pleaded guilty to corruption in 2022</a>.
What Happened: Alex Beard, a billionaire and former head of oil at Glencore ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>), has been charged with corruption by the UK&#8217;s Serious Fraud Office (SFO), alongside four other former Glencore employees, <a href="https://www.bloomberg.com/news/articles/2024-08-01/glencore-s-billionaire-ex-oil-head-alex-beard-charged-with-corruption-by-uk?sref=TBDibEcD">per</a> Bloomberg. Beard served as head of oil at Glencore for over a decade before leaving in 2019.
Beard is accused of conspiring to make corrupt payments to benefit Glencore's oil operations in West Africa. The SFO accused Beard of improper actions with government officials and employees of state-owned oil firms in Nigeria and Cameroon between 2007 and 2014.
Beard's former deputy, Andy Gibson also faces allegations of making corrupt payments in Nigeria, Cameroon and the Ivory Coast, and falsifying invoices. Additional charges were brought against Paul Hopkirk, Ramon Labiaga and Martin Wakefield, former Glencore employees involved in West African oil trading. All four former Glencore employees are set to appear in a British court on Sept. 10.
Glencore, founded in 1974 by the late Marc Rich, is a commodity giant with mines, oil, trading, and agriculture operations worldwide. The company — which went public in 2011 — has a market cap of 49.55 billion pounds ($63,273,863,500).
This follows Glencore&#8217;s 2022 guilty plea to corruption and market manipulation in the U.S. and U.K., resulting in $1.5 billion in fines. Beard, who founded Adaptogen Capital post-Glencore, exited his role there on July 12.
"Bribery damages financial markets and causes lasting harm to communities," SFO Director Nick Ephgrave <a href="https://www.ft.com/content/27b66a9f-b1e6-4c49-83a7-f7896539ad2e?FTCamp=engage/CAPI/desktopapp/Channel_Bloomberg//B2B">told</a> the Financial Times in a statement. "Today's action is an important step towards exposing overseas corruption and holding those who are responsible to account."&nbsp;
Beard has a net worth of $2 billion <a href="https://www.forbes.com/profile/alex-beard/">according</a> to Forbes. Beard owned 2.5% of Glencore in 2019. He was born in London and attended Oxford University.
Price Action: Glencore shares were trading at $10.69, down 3.26% at the time of writing.
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Source: <a href="https://www.streetwisereports.com/article/2024/07/19/critical-minerals-co-starts-fieldwork-at-montana-flagship-project.html?utm_medium=feed">Streetwise Reports 07/22/2024</a>
Stillwater Critical Minerals Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/pgezf#OTC">PGEZF</a>) announced it has started 2024 field activities at its flagship Stillwater West project in Montana, including a property-wide airborne electromagnetic geophysical survey.
Expert Geophysics Ltd. will conduct a combined time-domain electromagnetic (EM) survey using their TargetEM26 system along with a magneto-telluric survey using their MobileMTm system at the nickel-platinum group element-copper-cobalt plus gold (Ni-PGE-Cu-Co plus Au) project.
The survey will utilize the newest technological advancements in airborne EM, building on the success of a first-generation DIGHEM airborne EM survey flown over the project in 2000. It will cover about 1,069 line-kilometers and provide higher-resolution and improved depth of investigation from the DIGHEM airborne EM survey, as well as VLF coverage.
It has been designed in collaboration with Glencore International Plc (OTC: <a class="ticker" href="https://www.benzinga.com/stock/glncy#OTC">GLNCY</a>), which holds a 15.4% position in Stillwater and has provided ongoing technical support to the company, to fine-tune priority conductive drill targets across the 12-kilometer main resource area, as well as to assist with prioritization and ranking of additional untested conductive targets across the broader 61-square-kilometer property.
This large-scale geophysical survey is part of a larger program that is expected to include an updated mineral resource estimate that will support the commencement of various studies relating to potential production scenarios&quot; Stillwater President and Chief Executive Officer Michael Rowley said. &quot;These objectives will be important milestones in preparation for continued resource expansion drilling across the 12-kilometer deposit area, as well as in developing target areas.&quot;
<h2>Airborne Surveys to Give Important Info</h2>
Rowley said Stillwater is also pursuing a number of other studies and initiatives with strategic partners such as Cornell University and various U.S. government agencies.
The technical committee that includes Glencore is focusing on the expansion potential of the lower Stillwater Igneous Complex, the company said. The addition of Glencore&#39;s vice president of business development to Stillwater&#39;s board of directors in June confirmed this focus on expansion potential.
Detailed geological and structural interpretive work during the past two years added significantly to Stillwater&#39;s understanding of the large Platreef-style mineralized system discovered within the footwall contact zone of the project complex, Vice President Exploration Dr. Danie Grobler said.
&quot;Our geological models now display strong geological control and continuity on mineralized zones&quot; Grobler said. &quot;The planned airborne surveys will provide important high-resolution data sets to refine targeting of high-grade nickel-copper-PGE sulphide-hosted mineralization within the multikilometer-scale geophysical anomalies that we see across the 32-kilometer-long mineralized system.&quot;
<h2>Parallels With Massive South Africa Complex</h2>
In June, the company reported the final drill results from resource expansion drilling at the project, including six holes totaling 2,310 meters that were focused on expanding resources at the west end of the current deposits, which span nine kilometers.
All six holes targeted and successfully intercepted magmatic nickel and copper sulfide mineralization with significant PGE mineralization, furthering known parallels with the Bushveld Igneous Complex, the largest layered igneous intrusion in the Earth&#39;s crust in South Africa.
&quot;Our drill campaigns have successfully leveraged a substantial historic database to arrive at a total of approximately 40,000 meters of drilling in 236 holes to date&quot; said Rowley at the time. &quot;That wealth of data, combined with Glencore&#39;s backing and in-house expertise from similar geology in South Africa&#39;s Bushveld Igneous Complex, has positioned us exceptionally well with the largest nickel resource in an active American mining district at a time when the U.S. is looking to onshore supply chains of nine of the commodities we have inventoried.&quot;
Stillwater noted that drilling also successfully intercepted N-series mineralization in structures that are not known in the Bushveld Igneous Complex but have now been modeled in a series of eight north-south trending structures at Stillwater West.
The company said those results demonstrated significant potential to expand the 2023 Mineral Resource Estimate (MRE) for the project. All deposits and mineralization remain open for expansion in planned follow-up drilling.
<h2>The Catalyst: Powering the Green Energy Transition</h2>
According to a report by CarbonCredits.com, a rapid expansion in Indonesia&#39;s nickel industry has led to oversupply, causing price declines from highs in 2022 and 2023. However, it noted the long-term outlook for the metal remained positive and that &quot;market analysts also share the same sentiment.&quot;
The nickel market is expected to grow by a compound annual growth rate (CAGR) of more than 4.8% from 2024 to 2029, according to Mordor Intelligence. The market was valued at more than 2.1 million tons in 2021, analysts said.
The driving force over the medium term will be the demand for nickel in stainless steel alloys, Mordor noted, as well as for automobile batteries and energy storage systems in wind turbines or solar panels needed for the energy transition.
An article from Stockhead on May 13 noted how Sprott&#39;s Steve Schoffstall spoke highly about nickel potential.
&quot;In our view, nickel miners are poised to offer investment attractive opportunities to investors&quot; Schoffstall said. &quot;Although nickel prices declined in 2023 on the back of softer Chinese EV sales and a flood of supply from Indonesia, the metal has been rebounding thus far in 2024 and benefiting the prospects of mining companies.&quot;
Schoffstall added, &quot;The rise in nickel prices seems to be a combination of investor sentiment, potential supply constraints, and the underlying long-term demand for nickel in the clean energy transition.&quot;
Geopolitics are also important to consider, especially given Chinese dominance in nickel markets via the mines and processing operations in Indonesia, Rowley told Streetwise Reports, adding that BHP&#39;s recent decision to suspend production at their giant Nickel West operations in Western Australia is evidence that China&#39;s strategy to squeeze out western miners is working.
&quot;For this reason, Stillwater highlights the importance of having the largest nickel resource in an active U.S. mining district&quot; he said.
According to Straits Research, Platinum Group Metals (PGM) are utilized in various products, including oxygen sensors, fuel cells, auto catalysts, jewelry, electronic parts, and medical equipment, among other things.
The global market for PGE was US$15.7 million in 2021 and is projected to reach US$21.8 million by 2030, growing at a compound annual growth rate (CAGR) of 4.44% from 2022 to 2030, researchers said.
Copper and cobalt are also needed for the energy transition for use in wires and batteries and other important products.
<h2>Ownership and Share Structure</h2>
Management and insiders own approximately 20% of Stillwater, according to the company.
Executive Chairman and Director Gregory Shawn Johnson owns 2.86%, President and CEO Michael Victor Rowley owns 2.56%, Independent Director Gregor John Hamilton owns 1.65%, Independent Director Gordon L. Toll owns 0.44%, and Vice President of Exploration Daniel F. Grobler owns 0.23%, according to Reuters.
Institutions own approximately 25% of the company, high net-worth investors own about 37%, and Glencore Canada Corp. owns 15.4%. About 18% of the company&#39;s shares are in retail, Stillwater said.
There are about 227 million shares outstanding with 174.5 million free float traded shares, while the company has a market cap of CA$36.33 million and trades in a 52-week range of CA$0.13 and CA$0.22.
Important Disclosures:
<ol>
<li>Stillwater Critical Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.</li>
<li>As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Stillwater Critical Minerals Corp.</li>
<li>Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.</li>
<li>This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports&#39; terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.</li>
</ol>

Most of us have heard the dictum &quot;the trend is your friend.&quot; And this is undeniably the key to success when it comes to short-term investing or trading. But it isn&#39;t easy to ensure the sustainability of a trend and profit from it.
Often, the direction of a stock&#39;s price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it&#39;s important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- that could keep the momentum in the stock going.
Investors looking to make a profit from stocks that are currently on the move may find our &quot;Recent Price Strength&quot; screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
Glencore PLC (OTC: <a class="ticker" href="https://www.benzinga.com/stock/glncy#OTC">GLNCY</a>) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for &quot;trend&quot; investors.
A solid price increase over a period of 12 weeks reflects investors&#39; continued willingness to pay more for the potential upside in a stock. GLNCY is quite a good fit in this regard, gaining 4.4% over this period.
However, it&#39;s not enough to look at the price change for around three months, as it doesn&#39;t reflect any trend reversal that might have happened in a shorter time frame. It&#39;s important for a potential winner to maintain the price trend. A price increase of 2.6% over the past four weeks ensures that the trend is still in place for the stock of this company.
Moreover, GLNCY is currently trading at 82.8% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock&#39;s near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.
Another factor that confirms the company&#39;s fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock&#39;s near-term price performance.
So, the price trend in GLNCY may not reverse anytime soon.
In addition to GLNCY, there are several other stocks that currently pass through our &quot;Recent Price Strength&quot; screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past.
<a href="https://www.zacks.com/stock/news/2299074/here-s-what-could-help-glencore-glncy-maintain-its-recent-price-strength?cid=CS-BENZ-FT-tale_of_the_tape|recent_price_strength_screen-2299074">To read this article on Zacks.com click here.</a>

Here's What Could Help Glencore Maintain Its Recent Price Strength

Labour Party member Keir Starmer is set to become the new prime minister of the United Kingdom with <a href="https://www.benzinga.com/news/24/07/39640147/keir-starmer-to-become-uk-prime-minister-as-labour-wins-big-over-rishi-sunaks-conservatives-mohamed">a win over the Rishi Sunak-led Conservative Party.</a>
The win marks an end to 14 years of Conservative Party control in the United Kingdom. The Labour Party will also have one of the largest majority government leads in the country in 25 years, as reported by CNN.
"A mandate like this comes with a great responsibility," Starmer said Friday. 
Starmer promised to put "country first, party second" in his victory speech.
UK Stocks &amp; ETFS: Gains for United Kingdom stocks and ETFs were minimal on Friday with the results of the election potentially priced in and others dissecting what the Labour Party in control means for certain sectors.
The iShares MSCI United Kingdom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWU#NYSE">EWU</a>) is up 0.5% on Friday. The largest U.K. ETF has $2.8 billion in assets under management and holds 80 stocks representing <a href="https://www.benzinga.com/quote/EWU/news">the largest companies in the country</a>.
The top holdings are:
AstraZeneca PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>)
Shell PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>)
HSBC Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSBC#NYSE">HSBC</a>)
Unilever PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UL#NYSE">UL</a>)
BP PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>)
RELX PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RELX#NYSE">RELX</a>)
GlaxoSmithKline PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSK#NYSE">GSK</a>)
Rio Tinto PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>)
Diageo PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEO#NYSE">DEO</a>)
Glencore PLC (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>)
Eight of the 10 largest holdings are up Friday at the time of writing, with HSBC and Rio Tinto trading lower.
The top weightings in the iShares ETF are the categories of financials (19.3%), consumer staples (16.4%) and energy (13.4%).
The Franklin FTSE United Kingdom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLGB#NYSE">FLGB</a>) also offers exposure to the country with 107 holdings. The fund has all the same top 10 holdings as the iShares MSCI United Kingdom ETF, in a slightly different order and at smaller weightings. The ETF's largest categories are financials (19.5%), consumer staples (15.5%) and energy (14.4%).
Another ETF option is the iShares MSCI United Kingdom Small Cap ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/EWUS#BATS">EWUS</a>). The ETF holds 231 stocks and has smaller weightings for the small-cap components it holds. The top categories for the ETF are industrials (21.5%), financials (19.8%) and consumer discretionary (14.8%).
What Experts Are Saying: British private bank and wealth management company Coutts sees policy changes from the Labour Party leadership taking time to materialize.
"In terms of what this means for the U.K. population and our clients, we will closely monitor the developments of a Keir Starmer government and its potential impact on markets," Coutts Chief Investment Officer Fahad Kamal said.
Kamal said history shows U.K. elections don't tend to have a "long-term impact on markets."
The CIO said it could be "business as usual" for the United Kingdom. One item to closely monitor is falling inflation in the country and the potential for rate cuts soon, which could improve economic growth in the country, he said. 
RBC Capital analysts see the homebuilding sector in the United Kingdom benefitting with a Labour Party win, as reported by CNBC. The analysts said the new leadership and policy pledges could lead to a "new age" for homebuilding in the country.
"Over the last few years housebuilders' potential has been hamstrung, but over the next few this potential is likely to be unleashed," the RBC analysts said.
It is worth noting the iShares MSCI United Kingdom Small Cap ETF counts the real estate sector as its fourth-largest weighting at 12.3%, which could make the ETF stand out based on policy. The EWU and FLGB ETFs have 0.8% and 1.1% exposure to the real estate sector, respectively.
Allianz also sees opportunity in U.K. homebuilders with the Labour Party win and likely cuts to interest rates ahead. 
"We expect rules and regulations around planning permissions to be quickly relaxed by the incoming government," Allianz said.
Allianz also sees opportunity in U.K.-listed mining companies thanks to the electrification of the energy supply.
Citi has a preference for the FTSE 250 over the FTSE 100, preferring small to mid-cap sized companies over large caps, as reported by Investing.com.
"We see an improving balance of risks for UK SMID caps, which have underperformed, but are expected to have superior growth vs. large caps. SMID caps are also better positioned to benefit from rate cuts and a pick-up in dealmaking," Citi said.
Sectors like real estate and utilities were mentioned positively by Citi in the post-election comments.
Related Link:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39636949/british-pound-european-stocks-surge-ahead-of-uk-election-results-bitcoin-plummets-w">British Pound, European Stocks Surge Ahead Of UK Election Results; Bitcoin Plummets: What&#8217;s Driving Markets Thursday?</a></li>
</ul>
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United Kingdom Stocks, ETFs To Watch After Keir Starmer, Labour Party Win

WASHINGTON — An executive from Glencore ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) and other experts at a mining conference this month pointed to a sluggish permitting system for holding back the U.S. <a href="https://www.benzinga.com/topic/mining">battery materials supply chain</a>.
While there has been some success downstream with gigafactories and cathode business, "the U.S. is extremely lacking" upstream in mining,&nbsp;Ash Lazenby, a senior cobalt trader with mining giant Glencore, said at a recent&nbsp;Benchmark Mineral Intelligence&nbsp;battery metals conference in Washington, D.C.&nbsp;
The U.S. needs to firm up its permitting timelines as "predictability" for viable projects is the main barrier to addressing a disconnect between America's energy transition aims and building up domestic capacity for supplying the raw materials for that transition, he said.
Having a rigorous permitting system doesn't preclude having a good line of sight for companies who want to develop resources, he said.
For projects with this type of visibility, "a company like Glencore would be there," he said.
Also Read: <a href="https://www.benzinga.com/government/24/04/38315652/biden-plan-to-reportedly-block-alaska-mine-access-draws-industry-ire-frankly-i-am-disgusted">Biden Plan To Reportedly Block Alaska Mine Access Draws Industry Ire: &#8216;Frankly, I Am Disgusted&#8217;</a>
<h1 class="wp-block-heading">Considering the Environment, Project Costs</h1>
The U.S. has a host of laws designed to protect the environment while projects are being constructed, said Frank Macchiarola, chief policy officer with the American Clean Power Association.
But those laws have been used to keep projects from getting constructed at all, he said.&nbsp;
"We need to build things faster in the U.S.," he said. "We view it as a question of business certainty."
Project timelines can be sped up with permitting reform, not by making things worse for the environment, he added.
"It's better for the environment if we source things from the U.S.," said&nbsp;Richard Russell, senior vice president of government and political affairs with the&nbsp;National Mining Association.
The process for drafting an environmental impact statement for a project shouldn't take more than a year, even for the most complicated situations, he said. But the average timeline is now 4.5 years, and some take as long as seven years, he added.
He noted that permitting timelines spanning more than one presidential term increases uncertainty for the industry.
Data from 2015 showed that permitting delays reduced the net value of a mining project by a third, Russell said.
"It makes it more expensive to do business here," he said.&nbsp;
Even if a timeline is five years long, certainty helps projects attract capital, said&nbsp;Joshua Lanning, executive director with&nbsp;CIBC Capital Markets. Riskier projects make capital more expensive, he said.
<h1 class="wp-block-heading">Litigation Reform Urged</h1>
Russell said that mining companies worry about going through a lengthy permitting process only to have the rug yanked out from under them because of a new round of litigation.
"There needs to be enforceable timelines," he said.
Macchiarola agreed.
"We should limit both the scope and the time with litigation," he said.
Now Read: 
 • <a href="https://www.benzinga.com/government/24/02/37203466/energy-transition-metals-at-stake-potential-us-mining-law-update-pits-industry-against-environmental">Energy Transition Metals At Stake: Potential US Mining Law Update Pits Industry Against Environmentalists</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:_licensing@benzinga.com" target="_blank" rel="noreferrer noopener">_licensing@benzinga.com</a> to get started!
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Glencore, Other Experts Say US Permitting System Holding Back Domestic Battery Metals Industry

The investment landscape for copper has been ignited by recent bullish predictions, particularly from prominent hedge fund <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">manager Pierre Andurand</a>. 
Andurand's <a href="https://www.ft.com/content/725234a6-9e6f-4a4a-9406-2bda667ca511">forecast</a> of copper prices reaching $40,000 per tonne underscored a compelling investment opportunity in copper miner stocks and the Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>).
Here are the drivers behind his optimistic outlook for copper. Benzinga will also touch upon the performance and holdings of the Global X Copper Miners ETF and examine technical indicators to present a comprehensive case for investors.
<h1 class="wp-block-heading">Copper Demand-Supply Dynamics</h1>
Copper, a critical metal in the energy transition, is poised for significant demand growth. Andurand&#8217;s prediction is based on the increasing electrification of the world, including:
<ul>
<li>electric vehicles</li>
<li>renewable energy infrastructure</li>
<li>military applications</li>
<li>data centers</li>
</ul>
As these sectors expand, the demand for copper is expected to double, outpacing supply, which traditionally takes about 15 years to develop new mines.
<h1 class="wp-block-heading">Pierre Andurand's Bullish Outlook For Copper</h1>
Andurand, known for his success in commodities trading, shifted his focus to copper after experiencing setbacks in the oil market.
His Commodities Discretionary Enhanced fund rebounded from a 55% loss last year and is now up 83% year-to-date, largely due to diversified commodity investments.
He believes current supply constraints and robust demand will propel copper prices to unprecedented heights.
<h1 class="wp-block-heading">COPX ETF Overview</h1>
The Global X Copper Miners ETF (COPX) offers a targeted investment in copper mining companies. With an expense ratio of 0.65%, the ETF has shown impressive returns:
<ul>
<li>3 Month Return: 32.70%</li>
<li>YTD Return: 27.36%</li>
<li>1 Year Return: 39.32%</li>
</ul>
<h1 class="wp-block-heading">Key Holdings</h1>
Global X Copper Miners ETF's portfolio includes leading copper miners, reflecting a diversified exposure to the industry (Company name, U.S.-listed ticker, allocation%):
<ol>
<li>First Quantum Minerals Ltd. (OTCPK:FQVLF) &#8211; 5.31%</li>
<li>KGHM Polska Miedz S.A. (OTCPK: KGHPF) &#8211; 5.30%</li>
<li>Boliden AB (OTCPK:BDNNY) (OTCPK: BLIDF) &#8211; 4.82%</li>
<li>Lundin Mining Corp. (OTCPK: LUNMF) &#8211; 4.72%</li>
<li>Teck Resources Limited Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) &#8211; 4.69%</li>
<li>BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) &#8211; 4.64%</li>
<li>Glencore plc (OTCPK: GLCNF) (OTCPK: GLNCY) &#8211; 4.60%</li>
<li>Zijin Mining Group Co., Ltd. Class H (OTCPK: ZIJMF) (OTCPK: ZIJMY) &#8211; 4.58%</li>
<li>Antofagasta plc (OTCPK: ANFGF) &#8211; 4.54%</li>
<li>Freeport-McMoRan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) &#8211; 4.51%</li>
</ol>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38292100/freeport-mcmoran-vs-teck-resources-which-copper-stock-has-more-upside">Freeport-McMoRan Vs. Teck Resources — Which Copper Stock Has More Upside?</a>
<h1 class="wp-block-heading">Charts Indicate Bullish Outlook For Global X Copper Miners ETF</h1>
The technical indicators for Global X Copper Miners ETF reveal a moderately bullish trend, with buying pressure suggesting a positive outlook.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png" alt="" class="wp-image-357042" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075654/Screenshot-2024-05-27-at-3.57.03-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
The Global X Copper Miners ETF share price is $48.66 while the 8-day simple moving average (SMA) is $49.98, which signals short-term bearishness.
However, the 20-day SMA at $48.35 and the 50-day SMA at $45.74 both indicate a bullish momentum. The 200-day SMA stands at $38.34, further reinforcing the bullish signal as the stock price remains well above it.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="625" height="454" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png" alt="" class="wp-image-357043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM.png 625w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/27075708/Screenshot-2024-05-27-at-3.56.13-PM-300x218.png 300w" sizes="(max-width: 625px) 100vw, 625px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
The Moving Average Convergence Divergence (MACD) indicator is 1.21, suggesting bullishness, while the Relative Strength Index (RSI) at 53.65 indicates that the ETF is neither oversold nor overbought. 
Additionally, the Bollinger Bands support bullish signals as the ETF is trading within the upper range.
Given the bullish forecast for copper prices, driven by robust demand and constrained supply, copper miner stocks and the COPX ETF represent a compelling investment opportunity. 
Andurand's expertise and confidence in the market, coupled with strong ETF performance and supportive technical indicators, suggest that investors could consider taking exposure to this sector. 
As the world continues to electrify and transition towards renewable energy, the demand for copper is set to soar, making now an opportune time to invest in copper miners through Global X Copper Miners ETF.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37985516/not-just-nvidia-ai-is-also-fueling-global-copper-demand-analyst-reveals-3-top-stock">Not Just Nvidia, AI Is Also Fueling Global Copper Demand: Analyst Reveals 3 Top Stock Picks</a>
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Copper To $40,000 A Tonne, Says Hedge Fund Titan Pierre Andurand: What ETF Investors Should Watch

Shell plc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>) said its subsidiary, Shell Singapore Pte Ltd, has&nbsp;reached an agreement&nbsp;to&nbsp;<a target="_blank" href="https://www.shell.com/news-and-insights/newsroom/news-and-media-releases/2024/shell-to-sell-interest-in-singapore-energy-and-chemical-park.html" rel="noreferrer noopener">sell&nbsp;</a>its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd.
CAPGC is a joint venture&nbsp;company&nbsp;between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.&nbsp;
Chandra Asri is an Indonesian chemical and infrastructure solutions company&nbsp;and&nbsp;Glencore&nbsp;Plc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) is one of the world&#8217;s largest global diversified natural resource companies and a producer and marketer of more than 60 commodities that advance everyday life.
The transition&nbsp;is expected&nbsp;to transfer&nbsp;all of&nbsp;Shell&#8217;s interest in Shell Energy and Chemicals Park Singapore, including the physical assets and commercial contracts, to CAPGC.
The decision comes after Shell initiated a strategic review of its Energy and Chemicals Park assets&nbsp;on&nbsp;Bukom and Jurong Island&nbsp;in June 2023.
The Pulau Bukom assets include a 237,000 barrels-per-day refinery and a 1.1 million tonnes-a-year ethylene cracker.&nbsp;Shell Jurong Island occupies more than 60 hectares&nbsp;on Jurong Island&nbsp;and manufactures petrochemicals, including ethylene oxide, ethoxylates, styrene monomer, and propylene oxide.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38650512/shell-shifts-gears-in-south-africa-reportedly-exits-downstream-unit" rel="noreferrer noopener">Shell Shifts Gears in South Africa, Reportedly Exits Downstream Unit</a>
Shell and CAPGC have also signed crude supply and products offtake agreements that will come into effect following completion.
After the completion, all employees providing dedicated support to&nbsp;the Shell&nbsp;Energy and Chemicals Park Singapore will retain their employment with CAPGC.
The transaction&nbsp;is expected&nbsp;to&nbsp;be completed&nbsp;by the end of 2024.
&#8220;This agreement marks a significant step in Shell&#8217;s ongoing efforts to high-grade our Chemicals and Products&nbsp;business,&nbsp;and is a testament to our commitment to deliver more value with&nbsp;less&nbsp;emissions, as outlined at our Capital Markets Day last year,&#8221; said Shell&#8217;s Downstream, Renewable and Energy Solutions Director, Huibert&nbsp;Vigeveno.
At the end of the first quarter, Shell had a net debt of&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38584564/shell-q1-earnings-power-shines-despite-revenue-headwinds" rel="noreferrer noopener">$40.5 billion, with a gearing ratio of 17.7%</a>.&nbsp;
Shell stock has gained more than 19% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HJEN#NYSE">HJEN</a>) and VanEck Natural Resources ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAP#NYSE">HAP</a>).
Price Action: SHEL shares are trading lower by 0.47% at $72.63 in premarket at the last check Wednesday.
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Market Vectors RVE Hard Assets Producers ETF

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Energy Shift: Shell Offloads Singapore Energy And Chemicals Park To Glencore-Chandra Asri Capital Joint Venture

Diversified miners Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) and Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) offer <a href="https://www.benzinga.com/m-a/24/05/38612588/potential-bidding-war-emerges-for-anglo-american-as-glencore-considers-offer">a better match than</a> that proposed in BHP Group&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) offer for Anglo, RBC Capital Markets analyst Marina Calero said in a note to clients on Friday.
Last week, Australia-headquartered BHP said it had made a $39 billion offer for London-based Anglo, which swiftly rejected the proposal as too low. This week, Reuters reported that Glencore, which is based in Switzerland, is considering a bid for the UK miner.
"We see the potential for a GLEN/AAL combination to have higher synergies vs. BHP/AAL given the closer proximity of the assets and the potential synergies for GLEN&#8217;s marketing division," Calero said.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38447657/copper-is-a-hot-commodity-bidding-war-for-anglo-american-may-emerge-after-bhps-low-">Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP&#8217;s &#8216;Low Ball&#8217; Offer — &#8216;Let The Games Begin&#8217;</a>
Copper assets are at the heart of both companies' interest in Anglo as the red metal is a key component of electric vehicles and renewable energy installations, demand for which is accelerating as nations around the world transition away from fossil fuels. All three diversified miners are also involved in coal.
"Mining synergies would largely come from the South American copper division and the Australian coal assets," Calero said.
In Chile:
<ul>
<li>Anglo and Glencore each hold a 44% stake in the Collahuasi mine, which has some of the largest copper reserves in the world.&nbsp;</li>
<li>Glencore owns the Lomas Bayas mine.&nbsp;</li>
<li>Anglo has a 50.1% stake in the Los Bronces mine and the same stake in the El Soldado mine.</li>
<li>BHP owns 57.5% of Escondida, the world's biggest copper mine. It owns the Pampa Norte mine.</li>
</ul>
In Peru:
<ul>
<li>Anglo owns 60% of the Quellaveco mine.</li>
<li>Glencore owns the Antapaccay mine.&nbsp;</li>
<li>BHP owns 33.75% of the Antamina mine, with Glencore holding the same percentage.</li>
</ul>
In Australia, all three companies have coal assets in Queensland.
RBC estimates that a combined Glencore-Anglo American would get 28% of its earnings before interest, taxes, depreciation and amortization (EBITDA) from copper, 19% from coal for electricity generation and 9% from the kind of coal used in steelmaking.
A combined BHP-Anglo would get 41% of its EBITDA from copper and 9% from coal, according to RBC figures.&nbsp;
Anglo has said the structure of the BHP offer is "highly unattractive."
It is contingent on the UK company spinning off its shareholdings in Anglo American Platinum Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANGPY#OTC">ANGPY</a>) and Kumba Iron Ore Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIROY#OTC">KIROY</a>), which are both listed in South Africa. 
In a merger with Glencore, the combined company might be able to keep the platinum and iron ore assets, Calero said.&nbsp;
"We view a combination of AAL with GLEN as potentially easier since the miner already has some assets in South Africa—coal, chrome and vanadium—and could be open to take on Amplats and Kumba into its portfolio," Calero said.
Jefferies analysts said in a note that Amplats and Kumba divestitures make sense in a deal with BHP. The miner already exited South Africa by spinning off South32 (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SOUHY#OTC">SOUHY</a>), which has manganese and aluminum holdings in the African nation, and selling its stake in mineral sands company Richards Bay Minerals.
BHP also does not want platinum-group metals mining, especially in South Africa with its headaches related to labor issues, geological challenges and power constraints, the Jefferies note said. Also, antitrust concerns would be an issue with Kumba in a BHP-Anglo deal, it said.
The Jefferies note also said copper antitrust concerns would likely be a problem in a BHP-Anglo tie up.
"It is not clear that the merged company would have non-core copper assets to divest as a proposed remedy," the Jefferies analysts wrote. "Los Bronces has operational upside, and BHP is clearly unlikely to sell its recently formed Copper South Australia business. Collahuasi, Quellaveco, Escondida, Pampa Norte, and Antamina would almost certainly be core as well.&#8221;
Now Read: <a href="EXCLUSIVE: Key Indicator May Flip Global Economic Forecasts — 'Copper Is Beginning To Define Its Own Narrative'">EXCLUSIVE:</a><a href="https://www.benzinga.com/markets/commodities/24/04/38111351/exclusive-key-indicator-may-flip-global-economic-forecasts-copper-is-beginning-to-define-its-"> Key Indicator May Flip Global Economic Forecasts — &#8216;Copper Is Beginning To Define Its Own Narrative&#8217;</a>
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Glencore-Anglo American Tie-Up Makes More Sense Than BHP Offer, Analyst Says

Australian multinational miner&nbsp;<a href="https://www.benzinga.com/quote/BHP">BHP Group</a>'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) nearly $40 billion bid for rival Anglo American (OTC:&nbsp;NGLOY) may not be enough to acquire the company as other diversified miners will probably make rival bids amid the global scramble for copper assets.
After completing a $6.4 billion takeover of Australian copper producer&nbsp;OZ Minerals&nbsp;last year, BHP is doubling down on the red metal amid widespread expectations that demand will greatly increase in coming years as the global economy transitions from fossil fuels. 
Solar and wind farms and electric vehicles require more copper than traditional utilities and internal combustion engine automobiles.
"This is the latest move to consolidate in industrial metals driven by a scramble for copper and other metals central to the world&#8217;s clean energy movement,"&nbsp;Sean Casterline, founder of the investment consulting firm&nbsp;Delta Capital Management, told Benzinga.
BHP, already the world's biggest mining company, is currently the third-largest copper producer behind Chile's state-run&nbsp;Codelco&nbsp;and U.S.-based heavyweight&nbsp;Freeport-McMoRan Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>). A combination with Anglo American would push BHP to the pole position.&nbsp;&nbsp;
"In our view, the copper assets are the primary driver of a proposed transaction,"&nbsp;RBC Capital Markets analysts said.&nbsp;
<h1 class="wp-block-heading">Rival Bids Seem Likely</h1>
BHP said it offered 25.08 pounds ($32.27) a share for London-based Anglo American, which said it is reviewing the proposal. The all-share deal values Anglo American at GBP 31.1 billion ($38.9 billion) and is contingent on the U.K. company spinning off its shareholdings in Anglo American Platinum Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANGPY#OTC">ANGPY</a>) and Kumba Iron Ore Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIROY#OTC">KIROY</a>), which are both listed in South Africa.
The proposal represents a nearly 14% premium for Anglo American's London-listed shares and a 31% premium without the platinum and iron ore units.
Analysts said that probably isn't enough.
Also Read: <a href="https://www.benzinga.com/markets/asia/24/04/38090219/will-copper-reach-10-000-an-essential-metal-that-faces-an-uncertain-future">Will Copper Reach $10,000? &#8216;An Essential Metal That Faces An Uncertain Future&#8217;</a>
Anglo American's shares have been so beaten down recently that its board and shareholders probably see BHP's bid as undervaluing the company, including copper assets in Chile and Peru, where BHP also has copper operations. Anglo American's shares have been suffering because of operational problems, a disappointing production outlook and a slump in diamond and platinum-group markets.
BHP's offer is "a timid and somewhat convoluted bid" that "won't be enough to draw either Anglo's board or its key shareholders," Liberum analyst Ben Davis said. After BHP's offer, he raised Anglo's price target to 27.50 pounds ($34.41), a near 25% bump from the stock&#8217;s closing price before the offer was officially made public.
Jefferies analysts went higher, saying a price of at least 28 pounds ($35.04) per share would be required for serious discussions between the companies, and a takeout price north of 30 pounds ($37.54) per share would be the outcome of a bidding war.
"If BHP does indeed continue to pursue this deal, we would be surprised if other bidders do not emerge," the company said. "Let the games begin."
The RBC Capital Markets analysts pegged diversified miner Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) as one logical bidder because of the potential advantages in combining the companies' copper assets. The company also listed Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) as a possibility because of the attractiveness of combining iron ore assets in Brazil. 
Davis pointed to diversified multinational miner&nbsp;Rio Tinto&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) as his top pick for an interloper, although he noted the company has a reputation for preferring to build mines rather than buy them.
<h1 class="wp-block-heading">Gold Miners Expand Copper Holdings</h1>
One reason why copper acquisitions are attractive is that building new copper mines from scratch is expensive and time-consuming.
That's especially true in the U.S., where getting a permit is difficult, or in other jurisdictions such as Panama, where a court ruling recently forced the closure of a huge copper mine after local protests, said&nbsp;Jason Crawshaw, portfolio manager at&nbsp;Polaris Capital, which invests in copper miners&nbsp;Lundin Mining Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LUNMF#OTC">LUNMF</a>) and Antofagasta (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ANFGF#OTC">ANFGF</a>).
"There is a scramble for assets," he told Benzinga. "Everybody is always looking to get more exposure to copper."
Even gold miners have been interested in bulking up on copper assets.&nbsp;
Last year, U.S.-based gold mining major&nbsp;Newmont Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) bought Australian gold miner Newcrest Mining Ltd. for nearly $17 billion, adding nearly 50 billion pounds of copper reserves and resources in one fell swoop.
Meanwhile, Canada-headquartered rival&nbsp;Barrick Gold Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) is spending nearly $2 billion to expand a copper mine in Zambia, targeting expanded plant production in 2028.&nbsp;
Investors looking for diverse exposure to copper producers can consider the&nbsp;Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>),&nbsp;Sprott Copper Miners ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPP#NASDAQ">COPP</a>),&nbsp;Sprott Junior Copper Miners ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COPJ#NASDAQ">COPJ</a>)&nbsp;and&nbsp;iShares Copper and Metals Mining ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICOP#NASDAQ">ICOP</a>).
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924793/rising-copper-prices-portfolio-review-make-underperforming-anglo-american-stock-a-p">Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Report (CORRECTED)</a>
Photo: Anglo American copper mine in Chile courtesy of Anglo American Flickr

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Copper Is A Hot Commodity: Bidding War for Anglo American May Emerge After BHP's 'Low Ball' Offer — 'Let The Games Begin'

When Indonesia's new president, Prabowo Subianto, assumes office in October he'll preside over the world's biggest nickel reserves and is widely expected to continue policies that have led to a global price slump for the battery metal and stainless steel ingredient.&nbsp;
The Southeast Asian nation accounted for more than half of global nickel production last year, but volume is only part of the story. 
Plentiful ore, cheap labor and low-cost electricity from power plants burning price-capped coal have helped Indonesia flood the world market with nickel at prices that sharply undercut competitors mining the metal elsewhere. 
Even with somewhat of a recovery since February, nickel prices are down around 19% over the past year.
This month, London-based Horizonte Minerals Plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HZMMF#OTC">HZMMF</a>) said it couldn't raise adequate financing for a nickel project in Brazil as potential investors declined to back the project because of "the unfavorable nickel market environment." 
That's on the heels of other nickel miners including multinational heavyweights BHP Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) and Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) saying they would&nbsp;mothball nickel operations.
"Indonesia produces some of the cheapest nickel in the world, so I think that the nickel operations in the rest of the world are going to really suffer," John Berman, chief investment officer of natural resources investment management company Berman Capital Group, told Benzinga. "Low nickel prices just give Indonesia the opportunity to gain more market share."
Also Read: <a href="https://www.benzinga.com/m-a/24/02/37318267/nickel-industry-cutbacks-to-support-prices-as-miners-brace-for-long-slump-2030s-will-likely-be-more">Nickel Industry Cutbacks To Support Prices As Miners Brace For Long Slump: &#8216;2030s Will Likely Be More Attractive&#8217;</a>
Berman thinks the president-elect will have policies similar to those of his predecessor, Joko Widodo, widely known as Jokowi.
Jokowi transformed Indonesia's nickel industry by banning the export of raw ore, requiring that value be added domestically through processing before being shipped out of the country. 
Amid the support for the domestic industry, Chinese companies began investing heavily in smelting and refining capacity that built up a steel supply chain in Indonesia. 
Indonesia now appears to be using a similar playbook to create a domestic electric vehicle battery supply chain. This time around, it appears Chinese firms may have to take a smaller slice of the pie given the interest Indonesia is seeing from companies from other nations.
"The critical challenge lies in advancing nickel processing for electric vehicle production, which will be a pivotal task for the new administration," Ahmad Syarif, a doctoral candidate in international affairs at Johns Hopkins University and an expert in Indonesian energy and natural resources issues, told Benzinga.
Even though Subianto is seen as continuing his predecessor's nickel policies, his election leaves market participants and observers wondering how he might put his own stamp on the industry, Nikhil Parikh, CEO of Indonesia-focused advisory Anise Partners, told Benzinga.
Subianto comes to the presidency from the position of defense minister. That may make him more focused on foreign relations, particularly regarding strategic partnerships and investment for natural resources such as minerals that are critical to the energy transition, Parikh said.
He will want to attract investment from the West and Middle East without alienating China, Parikh said. 
Over the next few years, Indonesia will continue to increase nickel refining capacity and leverage that to attract more of the electric vehicle supply chain, he added. 
That will mean more nickel ultimately stays in Indonesia, but for the foreseeable future it looks like the global market will continue to be awash in cheap Indonesian exports of the metal.
"I suspect it'll be full steam ahead for a while," Gregory Beischer, CEO of&nbsp;nickel miner Alaska Energy Metals Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AKEMF#OTC">AKEMF</a>), told Benzinga.
Now Read: <a href="https://www.benzinga.com/markets/commodities/24/03/37857275/exclusive-battery-companies-back-small-miners-for-long-term-provide-bright-spot-as-funding-ma">EXCLUSIVE: Battery Companies Back Small Miners For Long Term, Provide Bright Spot As Funding Market Crashes</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a>&nbsp;to get started!
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Asia

AKEMF

HZMMF

Will Indonesia's New President Continue Nickel Policy, Which Undercuts Competitors?

Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>), the world&#8217;s second-largest metals and mining corporation, is facing a possible divestment from the Norwegian sovereign wealth fund. 
The Council On Ethics, charged with ensuring adherence to strict ethical guidelines, is deliberating whether to recommend exiting the $2.15 billion stake due to alleged <a href="https://www.benzinga.com/markets/equities/24/04/38073216/why-rio-tinto-shares-are-falling-today">deforestation links in the Brazilian Amazon</a>.
According <a href="https://www.wsj.com/articles/rio-tinto-faces-possible-norway-fund-divestment-over-alleged-deforestation-links-de34bec2">to</a> The Wall Street Journal, in January, the council asked Rio Tinto for comment on its draft recommendation to exclude the company from Norway's $1.6 trillion fund. Since then, Rio Tinto and the council have been in discussions, but a final decision hasn't been made.
The council, which is independent, plays an important role in the world's largest sovereign wealth fund. Its job is to scrutinize investments made by Norges Bank Investment Management, the fund's operator. It can then recommend excluding companies from the fund or placing them on an observation list.
Now Read: <a href="https://www.benzinga.com/news/24/04/38059585/a-watershed-moment-for-gold">A Watershed Moment for Gold</a>
Norway&#8217;s stringent approach to ethical investing has also led to divestments from other major players in the industry, such as Glencore ADR (OTCPK: GLNCY), as the fund dropped the stake in the Swiss miner in 2020 due to thermal coal production concerns. 
With Norges closely adhering to recommendations related to environmental, social and corporate governance factors since 2015, Rio Tinto&#8217;s potential exclusion from the fund carries significant weight, as the fund is its fifth largest shareholder.
Yet, this isn&#8217;t the first time Rio Tinto has faced such a predicament. Back in 2008, Norway made headlines by divesting from Rio Tinto over concerns regarding the Grasberg mine&#8217;s operations in Indonesia, citing environmental damage. This divestment lasted for 11 years until June 2019, when Rio Tinto sold its stake in the mine for $3.5 billion, paving the way for its re-entry into the fund.
Today, the controversy lies in Rio Tinto&#8217;s 22% ownership of a bauxite producer, Mineração Rio do Norte (MRN), in northern Brazil. Another MRN shareholder, Australian miner South32 ADR (OTCPK: SOUHY), which has a 33% stake, is also under assessment, as Norges owns 2.18% worth some $223 million. The third major shareholder is the aforementioned Glencore, with 45%.
As the largest sovereign wealth fund with $1.6 trillion under management, Norges holds an average of 1.5% stake in the world's listed companies. Owing to its size, the fund holds significant global sway. Its actions attract interest from other sovereign-wealth funds and large pools of capital, potentially shifting the sentiment around the companies in focus.
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37924793/rising-copper-prices-portfolio-review-make-underperforming-anglo-american-stock-a-p">Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Repor</a>
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Norway's Sovereign Wealth Fund Contemplates Rio Tinto Divestment

Rio Tinto Plc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) shares are&nbsp;<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading lower on Wednesday.</a>
Norway&#8217;s sovereign wealth fund&#8217;s ethics adviser is evaluating the possibility of suggesting a sell-off of its substantial investment in Rio Tinto, citing environmental apprehensions, The Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/articles/rio-tinto-faces-possible-norway-fund-divestment-over-alleged-deforestation-links-de34bec2" rel="noreferrer noopener">reported</a>.
In recent months, the Council on Ethics, acting as the adviser, has informed Rio Tinto of its scrutiny regarding potential environmental harm stemming from the mining company&#8217;s activities in the Brazilian Amazon, the report read, citing a letter viewed by The Wall Street Journal.
The council&#8217;s apprehensions regarding Rio Tinto have centered on deforestation, particularly its stake in Mineração Rio do Norte (MRN) in northern Brazil, the report stated.&nbsp;
MRN claims to be Brazil&#8217;s largest bauxite producer, supplying around 12 million tons annually for aluminum production, as per the report.
Rio Tinto holds 22% ownership in MRN, alongside&nbsp;Glencore Plc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) (45%) and Australian miner&nbsp;South32 Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SHTLF#OTC">SHTLF</a>) (33%).
In January, the council requested Rio Tinto&#8217;s feedback on its preliminary proposal to bar the company from Norway&#8217;s $1.6 trillion fund. Subsequently, Rio Tinto and the council have engaged in talks, but a definitive verdict is pending, the report noted, citing sources familiar with the matter.
As an independent entity, the council holds significance for the world&#8217;s largest sovereign-wealth fund, examining investments made by Norges Bank Investment Management to ensure adherence to rigorous ethical standards. Subsequently, it may advise on excluding companies from the fund or listing them for observation.
Since 2015, Norges has adhered to every environmental recommendation, maintaining an average 1.5% stake in global listed companies.
For Rio Tinto, the world&#8217;s second-largest miner by market value, exclusion from the fund would be detrimental, the report read.
As of December 31, Norges held a substantial 2.24% stake valued at approximately $2.7 billion, making it one of the company&#8217;s top shareholders, The Wall Street Journal added.
Price Action:&nbsp;RIO shares are trading lower by 1.21% to $64.30 on Wednesday.

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Why Rio Tinto Shares Are Falling Today

Editor&#8217;s note: This story has been updated to correct the spelling of the investment banking firm Jefferies.
Diversified miner Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) could be a promising buy <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37852494/copper-stocks-rally-as-market-tightness-reaches-historic-levels-analysts-see-major-">as copper prices rise </a>and the company looks to transform itself, financial magazine Barron's said in an article.
The company has been underperforming competitors BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), Rio Tinto (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) and Glencore ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>) because of operational problems, a disappointing production outlook and a slump in diamond and platinum-group markets, <a href="https://www.barrons.com/articles/buy-anglo-american-stock-pick-price-ecab17ba">according</a> to the article, which ran on Friday.
Anglo said it is reviewing its assets, with CEO Duncan Wanblad saying in a conference call that "nothing is off the table" in the asset review.&nbsp;
Anglo's exposure to South Africa, via stakes in platinum and iron ore operations, helped depress its stock price because of the nation's problems with the economy, crime and power outages, Barron's said. Meanwhile, analysts aren't thrilled about the company's expensive fertilizer project in England.
The company&#8217;s platinum and iron ore stakes could be spun off while it would be bullish for the stock if Anglo can bring in a partner on the fertilizer project. The article also speculated that the entire company could be sold to a competitor.
"Because of its recent troubles, Anglo American's stock looks inexpensive," the article said. "Ultimately, Anglo American offers shareholders two ways to win. It either cleans up its business this year, or it could find itself in the hands of a larger mining company that will develop its attractive resource base."
Also read: <a href="https://www.benzinga.com/markets/esg/24/03/37914506/bidens-475m-for-mining-aims-to-power-communities-hit-hardest-by-our-evolving-energy-landscape">Biden&#8217;s $475M For Mining Aims To Power Communities &#8216;Hit Hardest By Our Evolving Energy Landscape&#8217;</a>
The Barron&#8217;s article cited Jefferies mining analyst Christopher LaFemina as saying that if Anglo's situation doesn't improve, the company could attract a buyer or activist investor. He also said recoveries in the diamond and platinum-group metals markets could help the company's shares.
Meanwhile, Anglo's best business is copper, but LaFemina said the company isn't getting credit for that metal because of the other issues.
Morgan Stanley analyst Alain Gabriel recently upgraded Anglo to Overweight, noting the portfolio review, potential operational improvements and the company's exposure to copper, which has a strong long-term outlook because of limited new supply and rising demand from the green energy industry.&nbsp;
Others are bullish on copper too.
An RBC Capital Markets analyst note on Monday said copper fundamentals are supportive as inventories in Shanghai posted their first weekly decline since December, an indicator that destocking may have begun. That would create more supply tightness in the copper market, as Chinese smelters said they would cut production amid falling concentrate supply.
Meanwhile, demand from China, the world's largest copper consumer, could see improvement.
"We are also seeing constructive commentary surrounding China stimulus and property market support with China&#8217;s central bank stating on Thursday that there is significant monetary policy flexibility to implement additional cuts to the reserve requirement ratio for banks while state media cited cabinet meetings on Friday which were focused on further optimizing property policy to support the struggling property sector," the RBC note said.
An ING commodities strategist also sees potential in improving Chinese demand from rising housing completions, as well as support for copper from a weaker U.S. dollar resulting from potential rate cuts from the Federal Reserve.
ING, along with other experts, also saw support for copper from the energy transition away from fossil fuels.&nbsp;
"The demand side is expected to slowly improve this year, especially from the green energy sector," the ING note said. "Copper is used in everything from electric vehicles to wind turbines and power grids."
Now Read: <a href="https://www.benzinga.com/markets/equities/24/03/37906958/exclusive-new-era-for-mining-as-nouveau-monde-takes-on-china-in-graphite-supply-chain">EXCLUSIVE: &#8216;New Era For Mining&#8217; As Nouveau Monde Takes On China In Graphite Supply Chain</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to&nbsp;<a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a>&nbsp;to get started!
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Rising Copper Prices, Portfolio Review Make Underperforming Anglo American Stock A Potential Bargain: Report (CORRECTED)

Wildsight, a non-profit environmental organization, estimates that the selenium cleanup costs associated with Teck Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) coal mining activities in the Elk Valley region are much higher than anticipated. 
Despite<a href="https://www.benzinga.com/news/earnings/24/02/37285467/teck-resources-achieves-record-copper-production-targets-to-close-glencore-deal-by-q3"> excellent earnings results</a>, this news could slow the $8.9 billion coal asset sale to Glencore (OTCPK: GLNCY), which is pending regulatory approval.
According to the Wildsight<a href="https://wildsight.ca/2024/03/19/the-elk-valleys-6-4-billion-pollution-problem/"> report</a> and study, conducted by consulting firm Burgess Environmental, the cleanup cost could soar to at least $4.7 billion. That&#8217;s significantly higher than the $1.9 billion provisioned by the province for emergency shutdowns and mine reclamation.
&#8220;Their provisions with respect to capital spend do not align with B.C. government policy and their use of simplified assumptions overstate ongoing water treatment operating costs alone by 50-60%,&#8221; Dale Steeves, director of stakeholder relations at Teck Resources, <a href="https://www.reuters.com/world/americas/canadian-miner-tecks-elk-valley-clean-up-could-cost-least-c64-bln-environment-2024-03-19/">told</a> Reuters.
The report calculated the cleanup cost by assessing the expenses associated with implementing Teck&#8217;s current plan, which involves constructing water treatment plants until 2027 and operating them for 60 years.
See Also: <a href="https://www.benzinga.com/markets/commodities/24/03/37513662/the-answer-cannot-be-china-canadas-wilkinson-says-mining-scrutiny-intensifies-as-srg-scraps-d">&#8216;The Answer Cannot Be China,&#8217; Canada&#8217;s Wilkinson Says &#8211; Mining Scrutiny Intensifies As SRG Scraps Deal</a>
Selenium, a naturally occurring element toxic to fish in high concentrations, has been seeping into the surrounding environment for decades from waste rock piles around Teck&#8217;s coal mines. Although an important element in tiny amounts, in high doses, it becomes toxic, posing serious risks to aquatic life and causing deformities and reproductive issues in fish.
Teck has invested over $1 billion since 2014 to mitigate selenium concentrations, with plans to allocate an additional $150 million to $250 million by the end of 2024. Teck's investments include water treatment facilities, with the current treatment capacity reaching 77.5 million liters daily. 
However, selenium concentrations downstream of the mines still exceed regulatory guidelines, highlighting the persistent challenges in remediation efforts. Thus, the company plans to build six more facilities by 2027, increasing the capacity to 150 million liters per day.
In an interview for The Narwhal, Simon Wiebe, a mining policy and impacts researcher at Wildsight, expressed concerns about the sale&#8217;s potential implications.
&#8220;We hope that both Glencore and the Canadian government will give careful consideration to this report as they assess the sale, ensuring accountability for the selenium crisis is upheld throughout the ownership transfer,&#8221; he stated.
While the asset acquisition by a much larger company such as Glencore provides more capital to deal with the problem, the company has a history of<a href="https://www.benzinga.com/government/22/05/27390214/commodity-trader-glencore-looks-to-settle-bribery-market-manipulation-charges-by-paying-penalties-up"> bribery and market manipulation</a> allegations. Thus, Canadian environmentalists have a genuine reason to stay alert. 
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Also read: <a href="https://www.benzinga.com/markets/commodities/24/03/37822526/copper-prices-surge-to-11-month-high-amid-supply-concerns-freeport-ceo-to-politicos-stop-givi">Copper Prices Surge To 11-Month High Amid Supply Concerns, Freeport CEO To Politicos: &#8216;Stop Giving Lip Service&#8217;</a>
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Cleanup Costs For Teck's Elk Valley Mining, May Slow $9B Asset Sale To Glencore, Wildsight Reports

Li-Cycle Holdings Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LICY#NYSE">LICY</a>) has entered into an agreement to issue a <a href="https://www.benzinga.com/partner/24/03/37532637/ride-the-changing-tide-in-the-markets-with-direxions-leveraged-etfs-as-growth-and-inflation-alter-ra">senior secured convertible note in an aggregate principal amount of $75 million</a> to an affiliate of Glencore plc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>).
Glencore is a Switzerland-based producer, recycler, and marketer of nickel and cobalt for the production of lithium-ion batteries.
&#8220;We are pleased to secure an additional $75 million investment from Glencore, following Glencore&#8217;s June 2022 investment, to improve our liquidity position while we continue our ongoing comprehensive review process,&#8221; said co-founder and CEO Ajay Kochhar.
Tim Johnston, co-founder and Executive Chairman, added that the company is reviewing its go-forward strategy for the paused Rochester Hub, including analyzing potential end-product mix options and construction strategy.&nbsp;
After the announcement in October 2023, in respect of the Rochester Hub, the company formed a Special Committee (SC) and deployed&nbsp;Moelis &amp; Company LLC, a global investment bank, as its financial advisor and placement agent.
After a careful review and assessment of the alternatives identified by the committee through the process, Li-Cycle has entered into the agreement with Glencore.
The company has agreed to seat two additional nominees of Glencore on its Board for a total of three nominees, with the first additional nominee to be identified by Glencore and proposed for election at the annual general meeting of shareholders to be held in 2024 and the second additional nominee to be proposed for election in 2025 or, if earlier, upon the occurrence of a vacancy.
Li-Cycle plans to provide its full-year 2023 financial and operating results on or before March 15, 2024, as part of the filing of its Annual Report on&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">Form 10-K for the year ended December 31, 2023.</a>
Price Action: LICY shares are trading higher by 29.46% at $0.5193 on the last check Tuesday.

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LICY

Why Is Li-Cycle Stock Jumping Today?

Lower production among the world's largest nickel miners in response to a price slump for the metal end up <a href="https://www.benzinga.com/government/24/02/37203466/energy-transition-metals-at-stake-potential-us-mining-law-update-pits-industry-against-environmental">supporting the market</a>.
That&#8217;s according to Russian metals giant Nornickel. London Metal Exchange nickel prices are down around 30% in the year through Friday, primarily driven by burgeoning supply from Indonesia — the world's largest producer of the metal.
Nickel — used in steel making and electric vehicle (EV) batteries — is in oversupply. That coincides with weak demand from the European, Chinese and U.S. stainless steel industries plus a tempered outlook for EV sales growth. 
Inflationary pressures also raised miners' cost of extracting nickel, helping to prompt a production cutback to save money.
"The price has not yet reacted to the potential supply risks, but any further supply curtailments could impact the primary nickel supply materially, which would likely support the LME (London Metal Exchange) quotes in the near term," Nornickel said in an outlook this month. The company, which is the world's biggest producer of refined nickel, seemed slightly more positive than other major nickel producers.
Nickel producer BHP Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) expects supply and demand in the nickel industry not to rebalance until the late 2020s. 
The company recorded a $2.5 billion impairment charge at nickel operations in Western Australia and said it is considering putting one of the assets on care and maintenance and is assessing spending on development of another asset there. 
"We expect this oversupply is going to persist for some time, which we've called end of this decade, whereas the 2030s are likely to be more attractive," BHP CEO Mike Henry said in a conference call Tuesday.
Another major nickel producer, Glencore (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLNCY#OTC">GLNCY</a>), doesn't expect the market rebalancing "for quite some time," the company said Wednesday.
The Swiss miner and commodities trading giant is looking to sell its stake in a joint nickel venture in the South Pacific and will put the unprofitable mine on care and maintenance in the meantime. It cited high operating costs and a very weak nickel market.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37295857/warrior-met-coals-ballooning-development-costs-prompt-analysts-to-rethink-projectio">Warrior Met Coal&#8217;s Ballooning Development Costs Prompt Analysts To Rethink Projections</a>
"Battery demand, which has been growing exponentially in recent years, is expected to grow at a slower rate in the short term, as some EV manufacturers scale back sales forecasts," Glencore said. "Demand from the stainless steel and alloy sectors has continued to increase, but total demand is unable to absorb the large supply additions to the market."
Mining giant Vale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) is assessing how to lower costs at its Thompson operations in Manitoba, Canada, and its Onça Puma operations in Brazil, Mark Cutifani, chair of the company's base metals business, said in a conference call Friday. 
Productivity improvements over the next two to three years could translate into 15% operating cost reductions, he said. Separately, the company is prioritizing a decision about merging its nickel operations in Ontario, Canada, with those of Glencore to save on costs, Reuters <a href="https://www.reuters.com/markets/commodities/vale-bm-says-decision-merge-canada-nickel-ops-with-glencore-priority-2024-01-10/">reported</a>.
<a href=""></a>"The asset review is taking us in the right direction," Cutifani said. "We've just got to get there as quick as we can."
Other recent nickel mining developments related to the falling price include:
<ul>
<li>Anglo American (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NGLOY#OTC">NGLOY</a>) took more than $800 million in impairment charges for its Barro Alto and Codemin mines in Brazil. "This takes the carrying value of assets excluding inventory to zero, and we are in the process of assessing the appropriate operating strategy for the near term," finance director John Heasley said in a conference call on Thursday.&nbsp;</li>
<li>First Quantum Minerals Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FQLV#OTC">FQLV</a>) said it would start only processing stockpiles at its Ravensthorpe mine in Australia.</li>
<li>Panoramic Resources Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PANRF#OTC">PANRF</a>) said it would suspend operations at its Savanna project in Australia.</li>
<li>Also in Australia, IGO Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/IPGDF#OTC">IPGDF</a>) recorded impairment charges on its Forrestania and Cosmos assets and put Cosmos on care and maintenance.</li>
<li>Sherritt International Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SHERF#OTC">SHERF</a>) reduced spending during the third quarter and in January announced layoffs amounting to 10% of its Canadian workforce.</li>
</ul>
Now Read: <a href="https://www.benzinga.com/markets/commodities/24/02/37074505/african-rail-projects-become-battleground-for-us-china-competition-in-strategic-mineral-suppl">African Rail Projects Become Battleground For US-China Competition In Strategic Mineral Supply Chains</a>
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FQLV

IPGDF

PANRF

SHERF

Nickel Industry Cutbacks To Support Prices As Miners Brace For Long Slump: '2030s Will Likely Be More Attractive'

Phase 1 confirmatory piloting work has commenced in Perth, Australia using Hydromet to process and recover PGMs from responsibly sourced spent automotive catalytic converters.

Lifezone Metals Inks JV With Glencore Subsidiary To Recycle Platinum, Palladium And Rhodium In US

Teck Resources Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/teck#NYSE">TECK</a>) shares are trading higher today as the company disclosed the&nbsp;<a class="editor-rtfLink" href="http://majority" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">sale&nbsp;</a>of its full stake in the steelmaking coal business, Elk Valley Resources (EVR), for $9.0 billion yesterday.
The Canadian miner is selling the coal business&#39; 77% stake to&nbsp;Glencore PLC&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/glncy#OTC">GLNCY</a>) for $6.9 billion in cash.
Related:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/06/32815784/glencores-strategic-play-a-proposal-to-acquire-teck-resources-steelmaking-coal-business" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Glencore&#39;s Strategic Play: A Proposal to Acquire Teck Resources&#39; Steelmaking Coal Business</a>
Also,&nbsp;Nippon Steel Corp&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/nistf#OTC">NISTF</a>) has agreed to acquire a 20% interest in EVR in exchange for its current 2.5% interest in Elkview Operations plus $1.3 billion in cash payable at closing and $0.4 billion paid out of cash flows from EVR.
Teck will continue to operate the steelmaking coal business and retain all cash flows of around $1 billion from EVR till the closure of the Glencore transaction.&nbsp;
The Glencore transaction is expected to close in Q3 FY24, and the NSC deal is projected to close in Q1 FY24, subject to customary closing conditions.&nbsp;
Jonathan Price, TECK&#39;s President and CEO, said, &quot;This transaction will be a catalyst to re-focus Teck as a Canadian-based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company. This sale will ensure Teck is well-capitalized and able to realize value from our base metals business and deliver strong returns to our shareholders while maintaining a robust balance sheet.&quot;
As of October 23, 2023, TECK&#39;s&nbsp;<a class="editor-rtfLink" href="https://www.teck.com/news/news-releases/2023/teck-reports-unaudited-third-quarter-results-for-2023" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">liquidity&nbsp;</a>stood at $7.0 billion, including $1.5 billion of cash.
Price Action: TECK shares are up 1.04% at $36.83&nbsp;on the last check Tuesday.&nbsp;
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Large Cap

NISTF

Why Canadian Mining Company Teck Resources' Shares Are Rising Today

<ul>
<li>Sale of majority stake to Glencore at implied enterprise value of US$9.0 billion on a 100% basis</li>
<li>Minority sale to Nippon Steel Corporation</li>
<li>Proceeds will be used to strengthen Teck's balance sheet, return cash to shareholders and ensure Teck is well positioned to realize value from its copper growth portfolio</li>
<li>Teck to retain all steelmaking coal cash flows until expected closing in third quarter of 2024</li>
<li>Glencore to establish Canadian head office for the steelmaking coal business in Vancouver, maintain jobs and increase investment in the business and local communities</li>
</ul>
Vancouver, B.C. – Teck Resources Limited (TSX:<a class="ticker" href="https://www.benzinga.com/stock/TECK#TSX">TECK</a>, NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TECK#NYSE">TECK</a>) ("Teck") today announced it has agreed to sell its entire interest in its steelmaking coal business, Elk Valley Resources ("EVR"), through a sale of a majority stake to Glencore plc ("Glencore") for an implied enterprise value of US$9.0 billion, and a sale of a minority stake to Nippon Steel Corporation ("NSC").&nbsp;
"This transaction will be a catalyst to re-focus Teck as a Canadian-based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company," said Jonathan Price, President and CEO, Teck. "This sale will ensure Teck is well-capitalized and able to realize value from our base metals business and deliver strong returns to our shareholders while maintaining a robust balance sheet. Glencore has made strong commitments that will create new benefits for Canada and the Elk Valley and ensure responsible stewardship of the steelmaking coal operations for the long term."
"The Board undertook a comprehensive process to identify a separation transaction that is in the best interests of the Company," said Sheila Murray, Chair of the Board, Teck. "This transaction unlocks significant value for Teck and its shareholders while also supporting continued responsible operation of the steelmaking coal assets for the long term."
"This sale sets the stage for Teck for continued growth as a major Canadian-based producer of copper and other future-oriented metals, while preserving the jobs and operations of the coal mines in the Elk Valley," said Dr. Norman B. Keevil, Chairman Emeritus, Teck. "This company was built on a foundation of sound geoscience and engineering excellence, with a record of successful mine-building second to none. That is the same foundation we see for Teck's future. It's time to get on with it."
Transaction Overview
The sale of Teck's steelmaking coal business at the implied enterprise value of US$9.0 billion on a 100% basis achieves a simple and complete separation of steelmaking coal from base metals.&nbsp;
Glencore has agreed to acquire 77% of EVR for US$6.9 billion in cash, payable to Teck at closing of the Glencore transaction, subject to customary closing adjustments.&nbsp;
NSC has agreed to acquire a 20% interest in EVR in exchange for its current 2.5% interest in Elkview Operations plus US$1.3 billion in cash payable to Teck at closing of the NSC transaction and US$0.4 billion paid out of cash flows from EVR. NSC will also enter into a long-term steelmaking coal offtake rights arrangement at market terms, continuing NSC's long-standing commercial arrangement for the purchase of steelmaking coal from the Elk Valley. POSCO has advised Teck it intends to exchange its current 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture, for a 3% interest in EVR. At closing of the Glencore transaction, Glencore will acquire from Teck any remaining receivable payable to Teck by EVR.
Teck will continue to operate the steelmaking coal business and will retain all cash flows from EVR until closing of the Glencore transaction, estimated to be US$1 billion. Following the closing of that transaction, Teck will have no further financial interest in EVR.
Closing of the Glencore transaction is subject to customary conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions, and is expected to occur in the third quarter of 2024. The NSC transaction is also subject to customary conditions, including receipt of certain competition approvals, and is expected to close in the first quarter of 2024. These transactions are not inter-conditional.
Use of Proceeds&nbsp;
Proceeds from these transactions will help ensure Teck is well-capitalized to maintain investment grade credit metrics and to unlock the full potential of its base metals business. Uses of proceeds are expected to include improving Teck's net leverage through debt reduction, the retention of additional cash on the balance sheet, and payment of transaction-related taxes, which are estimated to be approximately US$750 million. Teck's Board will determine the appropriate amount and form of a significant cash return to shareholders following closing of these transactions.&nbsp;
Teck remains committed to its current capital allocation framework that balances returns to shareholders with growth in copper while maintaining a strong balance sheet.
Benefits to Canada
These transactions support Teck's growth as a Canadian-based, global critical minerals champion, while ensuring continued socially and environmentally responsible steelmaking coal operations and enhanced benefits for Canada, British Columbia, and the employees, communities, and Indigenous Peoples of the Elk Valley.
As a pure-play base metals company, Teck expects to drive new economic opportunities and job creation as it increases production across the base metals portfolio, including the HVC2040 project to extend the life of Highland Valley Copper, Canada's largest copper mine, and the Galore Creek project in B.C. Teck is also evaluating an expansion of Trail Operations to include an electric vehicle battery recycling facility. Teck will continue to support junior Canadian mining and exploration companies, invest in research and innovation related to mining and processing, and help advance the Canadian Critical Minerals Strategy along with Canada's decarbonization and nature conservation goals.
To support enhanced benefits to the Elk Valley, B.C. and Canada, Glencore has made commitments that will ensure, among other things, that:&nbsp;
<ul>
<li>EVR will continue to operate in Canada through both a Vancouver head office and regional offices in Calgary, Alberta, and Sparwood, British Columbia, including completing the construction of a new Sparwood office.</li>
<li>EVR will maintain significant employment levels in Canada with no net reduction in the number of employees in the business in Canada as a result of the transaction.&nbsp;&nbsp;</li>
<li>EVR will increase capital expenditures in Canada such that they will amount to over CAD$2 billion (excluding deferred stripping) over three years.</li>
<li>EVR will increase research and development activities in Canada to at least CAD$150 million over three years, including on innovation in relation to water quality treatment technologies – a 50% increase over current levels.</li>
<li>EVR will increase its contributions to Canadian sponsorship, community and charitable programs.&nbsp;</li>
<li>EVR will participate as a major funding partner up to CAD$15 million for the proposed renal/oncology addition to the East Kootenay Regional Hospital in Cranbrook.</li>
<li>EVR will have a goal to become a nature positive business by conserving or rehabilitating at least three hectares for every one hectare affected by its mining activities going forward.</li>
<li>EVR will develop and implement a climate transition strategy which will include medium term scope 1 and 2 emissions reduction targets, a long-term goal of net zero in respect of scope 1 and 2 emissions by 2050 as well as a commitment to work with partners towards an ambition to achieve net-zero Scope 3 emissions by 2050.</li>
<li>EVR will honour the existing agreements between EVR and Indigenous Nations and will work with local Indigenous Nations to identify opportunities to increase participation in benefits from the activities of EVR.</li>
</ul>
A summary of these commitments is set out in the Appendix to this announcement.
Advisors
Barclays Capital Canada Inc., Ardea Partners LP, TD Securities Inc., and CIBC World Markets Inc. are serving as financial advisors to Teck. Stikeman Elliott LLP and Paul, Weiss, Rifkind, Wharton &amp; Garrison LLP are acting as legal advisors, and Felesky Flynn LLP is acting as legal tax advisor.
BMO Capital Markets, Goldman Sachs &amp; Co. LLC, and Origin Merchant Partners are serving as financial advisors to the Special Committee and Blake, Cassels &amp; Graydon LLP and Sullivan &amp; Cromwell LLP are acting as legal advisors to the Special Committee. The Special Committee received opinions from each of BMO Capital Markets and Origin Merchant Partners to the effect that, as of the date of each such opinion and subject to the assumptions, limitations and qualifications set forth therein, the consideration to be received by Teck pursuant to the transactions is fair, from a financial point of view, to Teck.
Investor Conference Call and Information
Date: Tuesday, November 14, 2023 Time: 5:00 – 5:40 a.m. PT / 8:00 – 8:40 a.m. ET Listen-Only Webcast: <a href="https://form.jotform.com/TeckIR/teck-resources-conference-call">Join Me</a> Dial In for Investor &amp; Analyst Q&amp;A: <a href="https://hd.choruscall.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9MzgxMjI5Jmg9dHJ1ZSZpbmZvPWNvbXBhbnkmcj10cnVlJmI9Mw==">Call Me</a>&nbsp;Or alternatively dial in at: 416.915.3239 or 1.800.319.4610 for a live operator, and Quote "Teck Resources", to join the call
An archive of the webcast will be available at teck.com within 24 hours.
Additional information including the accompanying presentation will be available at <a href="https://www.teck.com/separation/">www.teck.com/separation</a>.&nbsp;

TSX:TECK

Teck Announces Full Sale Of Steelmaking Coal Business For An Implied Enterprise Value Of $9B

<a href="https://www.wsj.com/business/energy-oil/teck-resources-nears-deal-to-sell-coal-business-to-glencore-c12349c5?st=55h0fo0espmf1hq&amp;mod=googlenewsfeed" title="https://www.wsj.com/business/energy-oil/teck-resources-nears-deal-to-sell-coal-business-to-glencore-c12349c5?st=55h0fo0espmf1hq&amp;mod=googlenewsfeed">https://www.wsj.com/business/energy-oil/teck-resources-nears-deal-to-sell-coal-business-to-glencore-c12349c5?st=55h0fo0espmf1hq&amp;mod=googlenewsfeed</a>

The Wall Street Journal Reported Monday, Teck Resources in Advanced Talks to Sell Coal Business to Glencore

Vanadium Miners News For The Month Of August 2024

Nickel Miners News For The Month Of August 2024

Copper futures fall as Goldman cuts forecast on softening Chinese demand

As the EV revolution accelerates, the demand for key base metals such as lithium, copper, and cobalt is rising. Explore fundamentally strong mining stocks Glencore (GLNCY), Freeport-McMoRan (FCX), and Eastman Chemical (EMN), which are poised to benefit from this shift to electrification in the automotive industry. Read more... With the rapid adoption of EVs worldwide and favorable government policies, the base metal mining industry is well-poised to witness significant growth in the near future. Amid the EV boom, fundamentally sound mining stocks Glencore plc (<a href="https://stocknews.com/stock/GLNCY/">GLNCY</a>), Freeport-McMoRan Inc. (<a href="https://stocknews.com/stock/FCX/">FCX</a>), and Eastman Chemical Company (<a href="https://stocknews.com/stock/EMN/">EMN</a>) could be ideal buys.
Metals and minerals serve as essential raw materials for the construction, manufacturing, technology, and energy sectors. From steel and aluminum used in infrastructure and transportation to rare earth elements powering modern electronics and renewable energy technologies, their role is crucial in driving economic growth and innovation.
According to a Research and Markets report, the mining market is expected to grow from $2.14 trillion in 2023 to $2.28 trillion in 2024 <a href="https://www.researchandmarkets.com/report/mining?srsltid=AfmBOoppYFMB_vKEypjrXhjiNj8j_yiKmmzN8MSN3I76N7TShfa18LLO">at a CAGR of 6.5%</a>. Further, the market is projected to reach $2.83 trillion by 2028, expanding at a CAGR of 5.5%.
Moreover, the significant rise of EVs has sparked a transformation in the automotive industry, with demand for critical materials surging rapidly. As automakers transition from internal combustion engines to electric drivetrains, metals like lithium, cobalt, nickel, and copper have become essential components in EV batteries and infrastructure.
This shift to electrification has revolutionized transportation but boosted the mining industry, creating lucrative opportunities for companies supplying these critical minerals. Thus, quality mining stocks GLNCY, FCX, and EMN could be solid investments to capitalize on the EV boom.
Let's discuss the fundamentals of the featured stocks in detail:
Glencore plc (<a href="https://stocknews.com/stock/GLNCY/">GLNCY</a>)
Based in Baar, Switzerland, GLNCY engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products across the Americas, Europe, Asia, Africa, and Oceania. The company operates through two segments: Marketing Activities and Industrial Activities.
On July 5, 2024, GLNCY received approval from the Government of Canada under the Investment Canada Act (ICA) for the acquisition of a 77% interest in Elk Valley Resources (EVR) from Teck Resources.
The strategic acquisition of EVR will enhance the quality of Glencore's portfolio, broadening its ability to provide high-quality steelmaking coal to customers worldwide and contributing significant expected cashflows to the company.
GLNCY's forward non-GAAP P/E of 12.10x is 19.8% lower than the industry average of 15.08x. Likewise, the stock's forward EV/Sales multiple of 0.37 is 78.7% lower than the industry average of 1.74.
In the half year that ended June 30, 2024, GLNCY's revenue increased 9% year-over-year to $117.09 billion. It reported adjusted EBITDA of $6.34 billion for the first half of 2024. The company's <a href="https://www.investopedia.com/terms/f/fundsfromoperation.asp">funds from operations (FFO)</a> were $4.04 billion, up 8.8% from the prior year's quarter. As of June 30, 2024, its assets stood at $120.69 billion.
Analysts expect GLNCY's revenue for the fiscal year (ending December 2024) to increase 5.9% year-over-year to $230.68 billion. Further, for the fiscal year 2025, the company's revenue and EPS are expected to grow 1.1% and 1.9% year-over-year to $233.13 billion and $0.98, respectively.
GLNCY's stock has gained 2.2% over the past nine months to close the last trading session at $9.92.
GLNCY's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.  
The stock has a B grade for Growth and Stability. GLNCY is ranked #4 out of 39 stocks in the <a href="https://stocknews.com/category/diversified-miners/">Miners – Diversified</a> industry.
<a href="https://stocknews.com/stock/GLNCY/">Click here</a> to see the POWR Ratings of GLNCY (Momentum, Value, Quality, and Sentiment).
Freeport-McMoRan Inc. (<a href="https://stocknews.com/stock/FCX/">FCX</a>)
FCX is a leading global metals company. It primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas.  Its portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits; and significant operations in North America and South America.
In terms of the trailing-12-month net income margin, FCX's 9.63% is 48% higher than the 6.51% industry average. Likewise, its 35.35% trailing-12-month EBITDA margin is 108.9% higher than the industry average of 16.92%. Furthermore, the stock's 19.04% trailing-12-month Capex/Sales is 170.4% higher than the industry average of 7.04%.
For the second quarter ended June 30, 2024, FCX's revenues increased 15.5% year-over-year to $6.62 billion. Its operating income rose 45.3% from the year-ago value to $2.05 billion. Its net income attributable to common stock came in at $616 million and $0.42 per share, up 79.6% and 82.6% from the prior year's quarter, respectively.
Street expects FCX's EPS and revenue for the third quarter (ending September 30, 2024) to increase 9.1% and 12.4% year-over-year to $0.43 and $6.54 billion, respectively. Moreover, the company surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
Shares of FCX have surged 12.5% over the past six months and 2.4% over the past year to close the last trading session at $41.61.
FCX's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
Within the <a href="https://stocknews.com/category/industrial-metals/">Industrial – Metals</a> industry, FCX is ranked #10 among 27 stocks. It has a B grade for Quality. <a href="https://stocknews.com/stock/FCX/">Click here</a> to see FCX's ratings for Growth, Value, Momentum, Stability, and Sentiment.
Eastman Chemical Company (<a href="https://stocknews.com/stock/EMN/">EMN</a>)
EMN is a leading specialty materials company. The company operates through Additives &amp; Functional Products; Advanced Materials; Chemical Intermediates; and Fibers segments.
In terms of forward non-GAAP P/E, EMN is trading at 12.90x, 14.5% lower than the industry average of 15.08x. Similarly, the stock's forward Price/Sales of 1.24x is 9% lower than the industry average of 1.37x.
During the second quarter that ended June 30, 2024, EMN's sales revenues increased 1.7% year-over-year to $2.36 billion. Its adjusted EBIT rose 5.1% over the year-ago value to $353 million. Also, the company's adjusted earnings per share were $2.15, an increase of 8% from the previous year's quarter.
Analysts expect EMN's revenue to increase 4.8% year-over-year to $2.38 billion for the third quarter ending September 2024. The consensus EPS estimate of $2.13 for the current quarter indicates an improvement of 45.1% year-over-year. In addition, the company topped consensus EPS estimates in all four trailing quarters.
EMN's stock has gained 12% over the past six months and 19.5% over the past year to close the last trading session at $99.24.
EMN's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Value. EMN is ranked #21 of 81 stocks in the B-rated <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry.
<a href="https://stocknews.com/stock/EMN/">Click here</a> to see EMN's ratings for Growth, Momentum, Stability, Sentiment, and Quality.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
GLNCY shares were trading at $9.90 per share on Thursday afternoon, down $0.03 (-0.30%). Year-to-date, GLNCY has declined -15.64%, versus a 15.87% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/glncy-fcx-emn-3-mining-stocks-to-benefit-from-the-ev-boom/>3 Mining Stocks to Benefit From the EV Boom</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Mining Stocks to Benefit From the EV Boom

Deutsche Bank analyst Liam Fitzpatrick maintained a Buy rating on Glencore (GLEN – Research Report) today and set a price target of £5.00. The comp...

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Glencore

Glencore (GLNCY) Forecast

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