Glencore
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| Glencore International AG | |
 |
|
| Type of Company | Privately held company |
|---|---|
| Founded | 1974 |
| Headquarters | Baar, Switzerland |
| Key people | Ivan Glasenberg, CEO |
| Industry | Raw materials |
| Revenue | EUR 76,000,000,000 (2006) |
| Employees | 2,000 in marketing, 50,000 in industrial production through subsidiaries (2006) |
| Website | www.glencore.com |
Glencore International AG (formerly called Marc Rich & Co AG) is one of the world's largest suppliers of commodities and raw materials, and is also among the world's largest privately held companies. As of 2006, it was Europe's sixth-largest company in terms of turnover.[1] According to The Sunday Times,[2] the company had USD 4,600,000,000 in shareholders' equity at the end of 2004 and is completely owned by its management.
With production facilities around the world, Glencore supplies metals, minerals, crude oil, oil products, coal and agricultural products to international customers in the automotive, power generation, steel production and food processing industries.
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[edit] History and charges of illegal acts
According to an Australian public radio report, "Glencore's history reads like a spy novel".[3] The company was founded as Marc Rich & Co. AG in 1974 by billionaire commodity trader Marc Rich, who was charged with tax evasion and illegal Iran deals in the U.S., but pardoned by President Bill Clinton in 2001. In 1993 and 1994, Rich sold all of his majority share in Marc Rich & Co. AG back to the company.[4] The enterprise, renamed to Glencore, was now owned and run by his former associates, including former Glencore CEO Willy Strothotte and present CEO Ivan Glasenberg.
ABC Radio also reported that Glencore "has been accused of illegal dealings with rogue states: apartheid South Africa, Communist Russia, Iran, and Iraq under Saddam Hussein", and has a "history of busting UN embargoes to profit from corrupt or despotic regimes". [3] Specifically, Glencore was reported to have been named by the CIA to have paid USD 3,222,780 in illegal kickbacks to obtain oil in the course of the UN oil-for-food programme for Iraq. The company denied these charges, according to the CIA report quoted by ABC.[3][2]
Moreover, Swiss public television (TSR) reported in 2006 that allegations of corruption and severe human rights violations were being raised against Glencore on account of the alleged conduct of its Colombian Cerrejón mining subsidiary. Local union president Francisco Ramirez was reported to have accused Cerrejón of forced expropriations and evacuations of entire villages in order to enable mine expansion, in complicity with Colombian authorities. According to TSR, a representative of the local Wayuu indians also accused Colombian paramilitary and military units, including those charged with Cerrejón mining security, of forcibly driving the Wayuu off their land, in what she described as a "massacre".[5]
[edit] Association with mining companies
Glencore is also noted for its association with the publicly traded Xstrata mining group, also headquartered in the Canton of Zug, Switzerland. Glencore is reported to serve as a marketing partner for Xstrata.[2][6] As of 2006, Glencore leaders Willy Strothotte and Ivan Glasenberg are on the board of Xstrata, which Strothotte chairs.[7] According to The Sunday Times, Glencore controls 40% of Xstrata stock and has appointed the Xstrata CEO, Mick Davis.[2][8] Similar arrangements exist with Century in the U.S. and Glencore partial subsidiary Minara Resources Ltd in Australia.[9]
[edit] Corporate assets
As of 2006, assets fully or partly controlled by Glencore include:[10]
[edit] Production facilities
| Area | Facility | Product | Location | Employees | Glencore ownership |
|---|---|---|---|---|---|
| North America | Evergreen Aluminum | Aluminium | Washington, USA | 10 (plant idle) | 100% |
| Columbia Falls Aluminum Co. | Montana, USA | 145 | 100% | ||
| Century Aluminum Company | HQ: Monterey, USA | 23% | |||
| Windalco | Jamaica | 1,200 | 93% | ||
| Alpart | 1,300 | 93% | |||
| South America | Prodeco | Coal | Santa Marta (port) and Calenturitas (mine), Colombia | 256 | 100% |
| Carbones de La Jagua (formerly Caribe) | La Jagua, Colombia | 350 | 100% | ||
| Los Quenuales | Zinc, lead | Yauliyacu, Peru | 1,998 | 97% | |
| Iscaycruz, Peru | 1,271 | 97% | |||
| Perubar | Rosaura, Peru | 444 | 85% | ||
| Sinchi Wayra | Zinc, lead, tin | 5 mines, Oruro and Potosi regions, Bolivia | 3,427 | 100% | |
| Aguilar mine | Zinc, lead, sulphuric acid | North west of Argentina | 1,725 | 100% | |
| Moreno | Sunflower oil and meal | Crushing plants: Necochea, Daireaux, Villegas and Grainer; Argentina | 575 | 100% | |
| Europe | Portovesme | Zinc, lead | Sardinia, Italy | 773 | 100% |
| Eurallumina | Aluminium | 575 | 100% | ||
| Kubikenborg Aluminium AB (Kubal) | Sundsvall, Sweden | 470 | 100% | ||
| Aughinish Alumina | Alumina | Ireland | 472 | 100% | |
| Africa | Mopani Copper Mine | Copper | Zambia | 8,848 | 73% |
| Eurasia | OAO Russneft | Oil | Oil fields across Russia | 10,000 | 40-49% |
| Rostov on Don grain export elevator and wheat flour mill | Cereals | Rostov on Don, Russia | 470 | 100% | |
| Kazzinc | Zinc | Kazakhstan | 21,000 | 99% | |
| Asia | PASAR | Copper | The Philippines | 1,047 | 73% |
| Australia | Murrin Murrin Joint Venture | Nickel, cobalt | Western Australia | 671 | 70.3% (effective) |
| Cobar Copper Mine | Copper | Cobar, Central Western NSW, Australia | 267 | 100% |
[edit] Other subsidiaries, participations and joint ventures
| Name | Activity | Location | Glencore ownership | Notes |
|---|---|---|---|---|
| Xstrata plc | Mining | HQ: Zug, Switzerland | ca. 14%, controlling 40%[2] | See also text above. |
| Minara Resources Ltd | HQ: Perth, Australia | 50.5% | Operates the Murrin Murrin project. | |
| Cerrejón | Coal mining | Guajira department, Colombia | 33.3% up until Q2/2006 | BHP Billiton plc, Anglo American plc and Xstrata plc each own 33.3%. In 2006, Xstrata acquired Glencore's share.[11] See also text above. |
| Rusal | Aluminium, alumina | Russia | 12% | Announced merger / joint venture with RUSAL (66%) and SUAL Group (22%). World's largest aluminum and alumina producer with 110,000 employees in 17 countries.[12] |
[edit] Footnotes
- ^ "Six Swiss companies make European Top 100", Swissinfo, October 18, 2006. Retrieved on 2006-10-22.
- ^ a b c d e Peter Koenig. "Secretive Swiss trader links City to Iraq oil scam", The Sunday Times, September 25, 2005. Retrieved on 2006-10-22.
- ^ a b c Stephen Long. "Swiss link undermines Xstrata's bid for WMC", ABC Radio, February 11, 2005. Retrieved on 2006-10-22.
- ^ "Glencore Buys Out Founder", New York Times, November 10, 1994. Retrieved on 2006-10-22.
- ^ Frank Garbely, Mauro Losa. "Paradis fiscal, enfer social", Télévision Suisse Romande, 29 June 2006. Retrieved on 2006-10-22. (in French)
- ^ Alex Schärer. "Die Erben des Marc Rich", WochenZeitung, December 13, 2001. Retrieved on 2006-10-22. (in German)
- ^ www.xstrata.com, List of non-executive directors, accessed 22 October 2006
- ^ See also www.xstrata.com, Investor disclosure, accessed 22 October 2006
- ^ "Glencore ist größtes Privatunternehmen Europas", Handelsblatt, 16 August 2005. Retrieved on 2006-10-22. (in German)
- ^ This list may not be complete. Unless otherwise indicated, the source is: www.glencore.com, Worldwide Operations, accessed October 23, 2006. To access details, click on the percentages.
- ^ http://www.cerrejoncoal.com - About Us, accessed October 23, 2006
- ^ "ALUMINUM MERGER - Rusal, Sual, Glencore to create world leader", Canadian Mining Journal, October 15, 2006. Retrieved on 2006-10-23.
