...MarketLine Case Study Glencore & Xstrata Creating the fourth largest global mining company Reference Code: ML00007-065 Publication Date: January 2013 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED GLENCORE & XSTRATA: CREATING THE FOURTH LARGEST GLOBAL MINING COMPANY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00007-065 /Published 01/2013 Page | 1 OVERVIEW Catalyst Glencore International, a commodity trading giant, is seeking to merge with diversified mining company Xstrata. The move was announced in February 2012 with the proposal accepted by shareholders in November 2012. The deal is worth $31bn and would create the fourth largest mining company in the world behind the top three of BHP Billiton, Vale, and Rio Tinto. The company would also possess leading positions in other commodities in power generation and agricultural products. Summary Glencore is a company which operates in commodity markets, including mining. The company engages in both industrial activity and marketing, which allows it to safeguard against volatilities in an individual market. Further, by engaging in marketing, the company is able to adapt more effectively to adverse conditions. Glencore has demonstrated value creation in its acquisitions, with notable acquisitions including Kazzinc and Viterra. The company’s size also now allows it to negotiate big contracts, as it did with Rusal. Glencore was...
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...Restructuring of the Global Copper Mining Industry in 2012 Diana Alvarez Valencia (1310200) University Canada West Dr. Paul Rome MGMT 661 Strategic Management Tuesday, May 12, 2015 Introduction and Problem Identification In this case study we will identify the problems that can be issued in the process of the merger between two of the largest commodities traders in the world, Glencore and Xstrata. It will provide the background of both companies, the situation analysis, identification of alternatives Companies Background. Glencore had been a trading company since their early years with the name of Marc Rich & Co. Glencore, was founded by March Rich; Rich was a consummate dealmaker, doing business with the entire world no matter their country background (fascist or communists). Moreover, Marc Rich always tried to get the cheapest price with his Middle Eastern contacts. His most important clients were embargoed nations like Israel and South Africa. In 1983, the US government indicted Rich on charges of illegal trading and tax evasion. After different issues and in the sake of create a better reputation the company – Marc Rich & Co. - rebranded itself as Glencore. (Hitt, Ireland & Hoskisson, 2013). Furthermore, one of the Glencore’s practices, is to get cheap tier 2 assets from doing business in developing countries considered high-risk by others rather than developing on its own. In 2002, Glasenberg become the CEO of the company.(Hitt, Ireland & Hoskisson, 2013). ...
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...Division of an Existing Business This paper will explain the strategic plan for Newmont Mining Corporation’s newest venture, while defining the vision, mission, and goals of this Corporation and how it will interlink. It will state the company’s values and will offer strategic direction while considering the culture, social responsibility, and ethics. It will show how the mission statement along with the vision and values will help the company to achieve success in its new venture of promoting gold in a new format, and how it will guide the strategic direction of the company. It will address the needs of the public and global economies and how the company will offer a competitive advantage over all other companies in this industry. Company History Newmont Mining Corporation is an exploration, refining, and marketing company of gold and copper. They operate in the US, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico. As of December 31, 2013 , Newmont employed 15,085 people with its headquarters in Denver, Colorado. For the year ended in December 2013, they recorded revenues of $8,322 million. They are considered to be one of the largest producers of gold in the world (“Newmont”, 2014). Vision They consider their mission, vision , and values are what has helped to successfully grow their business. Their Vision is to be the most valued and respected mining company through industry leading performance. Their sustainability as a business depends solely on...
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...Taylor Covert (3/9/16)- ISP Country Analysis Report I. Country Introduction: Chile v. Peru Extending 2,880 miles down the western coast of South America, between the Pacific Ocean and the Andes mountains, is the remarkably slender country known as Chile. Due to its large geographical scale, encompassing 38 degrees in latitude, Chile has a range of climatic zones, from the arid Atacama Dessert in the north to the subtropical regions in the south. These diverse climates and topographies provide Chile with a wealth of natural resources including timber, iron ore, hydropower and most prominently, copper, an element known for its inherent ductility and electrical conductivity. Beginning in the mid 1960s, concurrent with China’s exploding GDP growth rate, the value of copper in the modern industrial market place began to soar due increased global demand. Chile, whose copper reserves account for 28% of the world’s total supply, experienced the positive economic impact from this increased demand, as seen through the country’s GDP growth of over 400% between 1970 and 2014, adjusting for inflation, (Appendix 1). Coupled with the solid GDP growth over the last 45 years, Chile was also able to establish strong institutions, an efficient government with relatively low levels of corruption, and solid macroeconomic stability, which subsequently established Chile as the most competitive economy in Latin America according the 2015 Global Competitiveness Report (GCR) (Appendix 2). Directly...
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...Project: Ethics of the Mining Industry Group 4 Business Ethics 04-71-300-02 Professor Singh Date submitted: March 19th, 2014 ! ! ! ! ! ! ! ! ! ! ! ! ! !1 Executive Summary This report assesses the global mining industry from a business perspective. Firstly, it begins with the history of mining across the globe and the structure of the mining industry. It then analyzes the impacts of the mining industry globally. Lastly, it addresses the issues surrounding our land—the Canadian mining industry. The research shows that the history of mining goes as far as the Neolithic era. The mining value chain presented demonstrates the formation of a mining company to the extraction of the natural resources. Further investigation shows that the mining structure is an oligopoly. Methods of analysis include an environmental analysis using PEST and a stakeholder map, which focus on the performance of a world-renowned mining company TransAlta. The finding is that management’s role is to have efficiency and productivity while maintaining ethical practices. Ethical theories are then used to look at the social, environmental and economical impacts of the Canadian industry. It is concluded that each ethical theory presents a favorable solution to each impact. Social corporate responsibility is evaluated in the last ten years in Canada and around the globe. It is found that the industry has become one of the most safety-conscious industries within Canada. The companies still have a prospective...
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...Canadian mining- Impact of cost inflation and volatility and the road ahead Introduction With a 9.8% share of Canada’s GDP, the mining sector is critical to the future of the Canadian economy (Deloitte Report). Unfortunately, rising cost inflation, unprecedented volatility in commodity and energy prices and a strong Canadian dollar have negatively impacted the performance of this sector over the last year. This report seeks to uncover the drivers behind cost inflation and evaluate the hedging strategies utilized by Canadian companies to mitigate volatility through a case study of Barrick Gold. We will also examine the impact of tightening margins on the capital expenditure decisions of this company. Part 1: Cost Inflation Cost inflation in the mining industry has been driven by increases in both Operational expenses and Capital expenditures. Operational expenses have been driven by three factors 1) Wage Increases 2) Energy Costs and 3) Supply cost increases. Wages in this industry have increased dramatically over the past 10 years and the Canadian mining industry now boasts the highest wages of all industrial sectors in Canada. The average weekly pay for a mining worker in 2011 was $1,436, which surpassed the earnings of workers in forestry, manufacturing, finance and construction by 47%, 46%, 35% and 32% respectively (DELOITTE REPORT) Source: Mining Association of Canada – 2012 Facts & Figures Report http://www.mining.ca/www/media_lib/MAC_Documents/P...
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...Mining Industry Case Analysis | Business Ethics in a Global Context | Presented To: Dr. Jang Singh | | | | Executive Summary This report will examine the Mining Industry via ethical perspectives. This report includes a brief overview of the industry followed by an evaluation of the Mining industry’s value chain; including an environmental analysis of a mining company, as well as an evaluation of the industry’s corporate social responsibility, corporate social responsiveness and finally the corporate social performance. The Mining Industry is one of the World’s largest industries. The ‘idea’ of mining dates back to the beginning stage of civilization. Some examples of early mining can be found in Egypt, Europe and the Philippines. As of now, top mining countries are South Africa, Russia, Australia, Ukraine and Guinea. This industry faces constant technology advancement, consequently it is an expensive investment, with large profit. The Mining Industry can be controversial when looked through an ethical lens. This Industry is analysed through four perspectives. * The utilitarianism perspective, an act is morally right if the outcome benefits the greatest amount of people; * The rights perspective, basically, important entitlements that should be respected and protected in every action; * The justice perspective, fair treatment of individuals in a situation where everyone is involved and gets what they deserve to; * The virtue perspective, morally...
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...A * A&W (Canada) * Abilis Solutions (software development, consulting) * AbitibiBowater * Ache Records * Addition Elle (women's clothing) * Advance Gold (mining) * Access Communications * Advanced Cyclotron Systems (medical cyclotrons) * Affinity Credit Union (banking) * Areva Resources Canada (uranium) * Air Canada (airline) * AldrichPears Associates * ALDO Group * Algonquin Power * Allied Shipbuilders * Alta Newspaper Group * Alterra Power * Angoss Software Corporation (software) * Appnovation * Arc'teryx (outdoor apparel/equipment) * Atimi Software Inc * Aritzia (clothing) * Army & Navy Stores (Canada) * Arsenal Pulp Press (publisher) * ATI technologies (semiconductors) * Atmosphere Visual Effects (movie special effects) * AVI Sound International (audio/visual equipment manufacture) B * Ballard Power Systems * Banff Lodging Co * Bank of Montreal * Bank West * Barrick Gold * Bard Ventures Company * BBC Kids (television) * BC Biomedical Laboratories Ltd. * BC Hydro * BC Research Inc * Becancour Silicon (silicon manufacture) * Bell Canada * Bennett Environmental * Becker's * Ben Moss Jewellers * Big Blue Bubble (software firm) * BigPark (software firm) * Biovail * BioWare (video games) * Bison Transport Inc. (Transportation) * Black Diamond Cheese Limited * Black Hen Music (record...
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...Engagement with the Private Sector Canadian Council for International Cooperation Policy Team Moira Hutchinson January 2000 Acknowledgements: This paper was prepared by Moira Hutchinson as an introductory paper to issues for the CCIC’s Learning Circle on NGO Engagement with the Private Sector. CCIC is grateful to the IDRC’s Canadian Partnerships Program for funding for the Learning Circle, including the production of this paper. The author wishes to express appreciation for the editing and other assistance provided by Brian Tomlinson of the CCIC, and for suggestions from other members of the planning group for the Learning Circle: Andrea Botto, Anne Buchanan, Tim Draimin, Philippe Jean, Brian Murphy and Lynda Yanz. 2 NGO Engagement with the Private Sector on a Global Agenda to End Poverty : A Review of the Issues Table of Contents 1. Introduction 1 2. What is this discussion really about? 2 3. Canadian NGOs: issues in advocacy, dialogue and partnership 3 3.1 Advocacy 3 3.2 Direct dialogue 6 3.3 Programming social partnerships and strategic alliances 8 3.3.1 What is driving the discussion of social programming partnerships and strategic alliances? a) Corporate interests b) Intermediary organizations c) NGO interests d) Government agendas e) Overlapping NGO-corporate interests? 10 10 11 12 13 14 3.3.2 Financial relationships 15 3.3.3 Strategic alliances and programming partnerships a) NGO and service / consulting firm partnerships b) Mining sector alliances and partnerships...
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...paper the three companies you researched and describe briefly their ethical dilemmas. Then compare the issues that they faced using the discussions, theories and relative case studies from the course. Discuss in your opinion how they could have avoided their ethical dilemma. Illiès Boussaha Student number: 230106913 Due Date: November 7, 2012 Word count: 2057 Maple Leaf Food is a Canadian food processing company that is located in Canada, the U.S, U.K and Asia. Its 100 facilities operates in the food and beverage sector, hiring 23.500 employees around the globe, of whom 1.100 temporary foreign workers. The company was created in 1963 and was originally named Canada Bread Company, Limited. It was, and still is the largest food processor of the country. A few years later, McCain Capital Corporation and the Ontario Teachers Pension Plan Board acquired most of the shares. They are still the main shareholders today. Moreover, the company acquired Olivieri™ Fresh Pasta and Sauces in 1988 and merged with Canada Packers Inc. In 1991. The company bought Canada's largest rendering company, Rothsay, the services provided by Rothsay are linked to environmental sustainability (collecting, processing and recycling animal products). Therefore, Maple Leaf Food seems to be environmentally friendly and thus has accomplished some of its social responsibility. However, in August 2008 the Canadian company faced a crisis...
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...2015) * The company wanted to own their own brand and build relationships with their customers, along with selling their products. But they realize that a lot of others companies were in need of an online shopping facility so they created Shopify. (Shopyfi, 2015) * Their main focus of creating a platform to manage every aspect of their business: from products to orders to customers, selling online, in retail stores and on the go. (Shopyfi, 2015) * From a team of 5 working employees, to a team of over 500 employees in 4 offices across Canada, they encourage everyone to experiment, take risk and push the envelope to the next level. (Shopyfi, 2015) Services at Shopyfi: 1. Use shopyfi to create your online store: these services give customers the opportunity to design their own web page and promote their products around the world. Customers have control over the look and feel of the website, from its domain name to its layout, colors and content. But if they don’t have the skills to create it they can choose from over 100 professional store templates. (Shopyfi, 2015) 2. Sell in person: These kind of services allowed customers to sell their products online, in-stores, or in their own phones, the inventory is automatically updated in real time. Using a cart does the payment and they can email the receipt. (Shopyfi, 2015) Prices range in these: Basis: 24 Canadian dollars /month Professional: 79 Canadian dollars / month Unlimited: 179 Canadian dollars /month ...
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...holder. CMA CANADA PROFESSIONAL PROGRAMS February 2012 Board Report Brightstar Mining Company Any resemblance between the names of the fictitious players in the following scenario and those of actual persons, corporations or products is purely coincidental. Please note: In order to remain consistent with industry standards, the standard units of measure used in the case are stated in imperial units. Within this document, all imperial measures (distance, area, volume and weight) have been rounded. Brightstar Mining Company 2012 Board Report CMA Canada 1 BRIGHTSTAR MINING COMPANY Organizational Background Brightstar Mining Company (BMC) is a publicly traded, Canadian company that is engaged in the development and operation of mineral properties in North America. Currently, BMC operates two copper mines and one zinc mine, extracts and mills the ore and sells it to customers in concentrate form. The company was founded 15 years ago by Charles Stuart and is listed on the Toronto Stock Exchange. Stuart worked for many years in a large, diversified mining company as a geologist specializing in copper exploration. His position required him to spend a significant amount of time travelling to mining sites all over the world, and this began to have an adverse affect on his family life. In order to spend more quality time with his family, he decided to establish his own mining company. In 1997, he founded BMC. As President and CEO, Stuart began operations with the...
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...Chilean mine collapse. Draft 1. To all family members as per company protocol, the main point of communication to inform of the progress done to the rescue of “the 33”. It has been a long and stressful journey, not possessing enough resources has directed the company to find other ways to proceed to the rescue including considering all kinds of safety factors, to make sure once the trapped mine workers resurface, every one of them will be in the best conditions to rejoined the work, family and everyday activities in their lives as if the mine collapse had never happened. The company understands the family concerns and would like to address them one by one. Because would be a hard task to accomplish, we will try to sum up most of the important information for the rescue plans for 2010 Copiapó mining accident. Company has implemented three plans to rescue the workers which involve an Australian built strata 950 model raise borer type drilling rig, a Schramm Incorporated. T130XXD air core drill owned by Geotec S.A., and a powerful Canadian Built RIG-421 oil drilling rig operated by Calgary – based Precision drilling Corporation. Information for drilling operations will also be provided in detail to employees. The rescue plans crew had developed a way to rescue the miners one by one with pods. Specific information is going to be provided individually if requested. Rest assures to the family members of “the 33” that the company staff, owners, executives, and private resources are working...
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...Company Analysis: Teck Resources Limited | November 9 2011 | Submitted by Amit Chaudhuri | BSEN-777 | Table of Contents 1. Company Profile ----------------------------------------------------------------------------- 3 2. Recent History ------------------------------------------------------------------------------- 3 3. Business Description ------------------------------------------------------------------------ 4 4. Financial Analysis --------------------------------------------------------------------------- 5 5. Strategy & Leadership ----------------------------------------------------------------------- 7 6. Future Outlook--------------------------------------------------------------------------------- 8 7. References-------------------------------------------------------------------------------------- 10 Company Profile Teck Resources Limited, formerly known as Teck Cominco Limited, was formed in 2001 following the merger of Cominco and Teck Corporation. It is a Canadian based integrated mining, mineral processing and metallurgical company. Seven years ago in 2001(1) when the Teck Cominco merger was completed, two strong Canadian companies with a tradition of excellence in mining and metal refining were brought together. In October of 2008 (1), the management of the company announced the launch of a simplified brand name, Teck, and the formation of five business units specializing in copper, metallurgical coal, zinc...
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...selected a long-term investment for the intent of wealth building. Growth stocks are intended to appreciate in value, as these companies have historical growth above average earnings, excellent cash flows to service their debts and high operating margins. Barrick Gold Corp. Barrick Gold Corp. is the gold industry leader. They have the largest un-hedged gold production and gold reserves in the industry. We chose to invest in Barrick Gold Corp. based on their target for growth, “A” rated balance sheet and their vision for being the best gold mining company through safe, profitable and socially responsible practices. Their income is generated from the finding, acquiring, developing and producing of quality gold reserves. In 2010, Barrick produced 7.8 million ounces of gold at a total cost of $457 per ounce and is targeting to grow to an annual production of 9.0 million ounce of gold within 5 years. The company also has exploration and developments projects that include proven and probable reserves of copper and silver. Stock Analysis On Feb.2, 2011, we purchased 423.01 of Barrick’s shares for $47.28 each. Their share price fluctuated from the purchase date till Mar.18. The share price was at its lowest the week of Feb.11. It increased by $4.00 by the end of week Feb.18, at the time the company declared a quarterly dividend of $0.12 per share, payable on Mar. 15. During the week of Feb. 25, the stock fell by $0.03,...
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