Output rises at Glencore but no word on Xstrata
COMMODITIES giant Glencore yesterday said trading was robust in the first quarter, ahead of its first shareholder meeting since going public.
The firm said its mining projects were on schedule despite power outages, rain and equipment glitches.
The world’s largest diversified commodities trader gave no update on its $35bn (£21.7bn) takeover of miner Xstrata, but it did confirm plans for at least $500m of synergies.
At the AGM in the Swiss town of Baar, Glencore executives told shareholders that the firm was confident its transactions in the Democratic Republic of Congo were “entirely proper” and dismissed calls for an independent inquiry into the deals.
“We see no need to hold an independent inquiry at this stage. The board oversees all our assets, including those [in Congo],” said chairman Simon Murray.
Copper production from Glencore’s own sources rose 11 per cent to 84,500 tonnes in the first quarter.
The firm also reported a 24 per cent rise in production at its Kazakh gold mine, and a 10 per cent jump in Colombian coal output.
Glencore said its trading division, which accounted for more than a third of operating profit last year, saw improved fundamentals in the oil market, grains, oilseeds and healthy premia for its core metals.
All resolutions at the meeting were passed comfortably, in spite of earlier complaints from campaigners about Glencore’s management structure, pay packets and deal transparency.