Glencore
| Company type | Public limited company |
|---|---|
| Industry | Commodity trading and mining |
| Predecessor | Marc Rich + Co AG |
| Founded | 1994 |
| Headquarters | Baar , Switzerland |
Area served | Worldwide |
Key people | Gary Nagle (CEO) |
| Products | Metals, minerals, crude oil, coal, natural gas, agricultural goods |
| Website | www |
Glencore plc is a multinational corporation specializing in commodity trading and mining, with dual Anglo-Swiss origins and its main headquarters located in Baar, Switzerland. Its oil and gas division is based in London, and the company holds a primary listing on the London Stock Exchange, where it is a significant constituent of the FTSE 100 Index. The official registered office is situated in Saint Helier, Jersey. It ranks among the largest global commodity traders and companies by market value.
Established in 1994 following a management buyout of Marc Rich + Co AG (originally founded in 1974), Glencore experienced substantial growth after merging with Xstrata in 2013. Even before this merger, it was a dominant integrated producer and marketer across various commodities, controlling approximately 60% of the tradable zinc market, 50% of copper, 9% of grain, and 3% of oil worldwide.
Glencore runs production operations across multiple continents, delivering metals, minerals, crude oil, coal, natural gas, and agricultural goods to sectors such as automotive manufacturing, power generation, steelmaking, and food processing. The company debuted on the London Stock Exchange in May 2011 and secured a position within the FTSE 100. It maintained a secondary listing on the Hong Kong Stock Exchange until its withdrawal in January 2018 and commenced trading on the Johannesburg Stock Exchange in November 2013. As of 2016, the Qatar Investment Authority was Glencore’s largest shareholder; however, Qatar's sovereign wealth fund announced the sale of £812 million (US$1.1 billion) worth of shares in March 2022.
Glencore has been embroiled in numerous controversies linked to environmental harm and corruption probes. The firm has admitted wrongdoing in several bribery and corruption investigations conducted by authorities in both the United States and United Kingdom.
1974–1994: origin and ownership transfer
The company originated in 1974 as Marc Rich & Co. AG, founded by commodity traders Marc Rich and Pincus Green. A pivotal moment occurred in 1993 when a group of employees led by Claude Dauphin left to create the trading firm Trafigura. In 1994, following failed attempts to dominate the zinc market which resulted in losses amounting to $172 million, Marc Rich was forced to sell his controlling interest to Glencore International, an industrial and commodities trading enterprise. The name "Glencore" is an acronym derived from "Global Energy Commodity Resources".
2005: transactions with sanctioned regimes
In 2005, reports by the Australian Broadcasting Corporation accused Glencore of engaging in illicit trade with regimes such as apartheid-era South Africa, the USSR, Iran, and Saddam Hussein’s Iraq. The company was alleged to have breached UN sanctions by profiting from corrupt governments. Notably, the CIA claimed that Glencore paid more than $3.2 million in kickbacks to secure oil contracts under Iraq’s UN oil-for-food program; these allegations were denied by Glencore.
2005–2011: involvement with Dan Gertler and activities in Congo
In 2005, funds from an oil transaction involving Glencore were confiscated amid a corruption investigation within the Democratic Republic of Congo. In 2007, Nikanor was merged into Katanga through a deal valued at approximately US$3.3 billion.
In May 2011, Glencore completed an initial public offering that valued the company at US$61 billion and created five new billionaires. Initially restricted to institutional investors, public trading opened to individual investors on 24 May 2011.
2011: financial and accounting controversies
In 2011, a group of five NGOs lodged a complaint with the OECD targeting a Glencore subsidiary, accusing it of tax evasion at its Zambian mining operations through financial manipulations conducted by Mopani Copper Mines Plc (MCM). A preliminary report by Grant Thornton alleged that Glencore’s tax avoidance strategies, involving transfer pricing and inflated expenses, deprived Zambia of hundreds of millions in revenue. These tactics were reportedly enabled by ownership arrangements based in the British Virgin Islands. Both Glencore and its auditor, Deloitte, rejected these claims. By 2013, Glencore had increased its payments to Zambia.
Facing declining commodity prices—particularly in coal and copper—and carrying a substantial debt load near $30 billion, Glencore recorded a net operating loss of $676 million during the first half of 2015, which negatively impacted its stock price. The company responded by focusing on debt reduction through divestitures of assets and share sales.
2011: affiliations with other mining firms
Glencore maintains significant ownership interests in several prominent mining companies, including a 44% economic stake in US-based Century Aluminum Co. (CENX), a 70.5% controlling interest in Australian nickel producer Minara Resources, and an 8.8% holding in Russian aluminium heavyweight United Company Rusal (HK:486). Additionally, Glencore is a major investor in globalCOAL, an online platform for physical coal trading governed by board members from multiple power utility companies.
By mid-2011, Century Aluminum was viewed as a high-risk investment but one with considerable profit potential.
2011–2012: initial public offering
In May 2011, Glencore executed a dual listing initial public offering on the London and Hong Kong stock exchanges, valuing the firm at roughly $60 billion and generating approximately $10 billion in gross proceeds. This public offering reduced CEO Ivan Glasenberg's ownership from 18.1% to 15.8%, while zinc, copper, and lead co-directors Daniel Mate and Telis Mistakidis saw their stakes decrease from 6.9% to 6%. The IPO disclosed extensive corporate information after nearly four decades of private operation. Glencore is noted for its opportunistic yet profitable acquisition approach.
The United Arab Emirates’ state-owned Aabar Investments emerged as the largest cornerstone investor during the IPO, committing $850 million and acquiring a 1.4% stake while signaling intentions for strategic collaboration with Glencore.
Nonetheless, by November 2012, Aabar Investments had written down over $392 million of its original $1 billion investment less than two years after the IPO, highlighting early volatility in Glencore’s public market performance.
2012–2013: merger with Xstrata
Prior to merging with Xstrata, Glencore acted as a marketing partner for the mining company. By 2006, key Glencore executives Willy Strothotte and Ivan Glasenberg held seats on Xstrata’s board, with Strothotte serving as chairman. Glencore controlled 40% of Xstrata’s shares and appointed its CEO Mick Davis. In February 2012, Glencore agreed to acquire Xstrata in an all-share "merger of equals" valued at 39.1 billion Swiss francs (approximately US$62 billion), creating an entity with combined sales of US$209 billion in 2012—the largest mining acquisition ever recorded.
Due to shareholder backlash in June 2012, both companies reconsidered an initial executive retention package that would have compensated 73 top executives over GBP 170 million. By October 2012, Glencore operated a fleet larger than the British Royal Navy and managed approximately 3% of global oil consumption across operations spanning 40 countries. Xstrata employed around 70,000 people across more than 20 nations. Market analysts anticipated that the merged company would rank as the world’s fourth-largest commodities trader.
In the period leading up to the April 2013 completion of the takeover, Glencore’s annual earnings declined by 25%, with net income dropping by 75%, impacted by impairments including the reclassification of its stake in Russian aluminium producer RUSAL. The merger was finalized on 2 May 2013. On 20 May 2014, the combined entity rebranded as Glencore plc. Following the merger, Xstrata CFO Trevor Reid shifted from an executive role to consultancy status, marking a strategic transition for the company entering a post-Reid phase.
2013–Present: Continued Expansion and Strategic Moves
In Ecuador, concerns over transparency have led the government to restrict intermediaries such as Glencore in transactions involving the state-owned oil enterprise Petroecuador.
By May 2014, Glencore declared it would cease operations at its Newlands coal mine in Queensland, Australia, by the end of 2015. This mine had produced 2.8 million tonnes of thermal coal in 2013. Meanwhile, activities at the Ravensworth underground mine were halted earlier due to declining coal prices, rising operational expenses, and the appreciating Australian dollar.
In June 2018, Glencore secured a 78% ownership in Ale Combustíveis S.A., a Brazilian fuel distribution company, with plans to broaden its presence by collaborating with independent gas stations.
February 2019 saw Glencore scale back output at its Mutanda copper and cobalt mine in the Democratic Republic of Congo, which contributed roughly 20% of global cobalt production. These reductions were expected to be temporary as new extraction methods were being evaluated.
GlencoreXstrata manages gold and nickel mining operations in Nunavut and Nunavik regions of Canada. In October 2020, it extended $10 million in bridge financing to Falco Resources to support its gold and copper projects based in Quebec.
In October 2020, Glencore’s CEO Ivan Glasenberg voiced opposition to divesting coal assets, advocating instead for limiting production and redirecting investment toward metals with rising demand such as nickel, copper, and cobalt as a more effective approach for meeting climate objectives. After nearly two decades in the role, Glasenberg retired in 2021 and was succeeded by Gary Nagle.
In February 2022, Glencore enhanced its ownership in Argentina’s MARA project to 43.75% by purchasing Newmont’s share for $124.9 million plus future payments. MARA contains proven reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold. The following year, Glencore further increased its stake to 56.25% by acquiring Pan American Silver’s interest for $475 million plus royalties; once operational, MARA is set to be among the top 25 copper producers worldwide.
During the global energy crisis of 2022, Glencore’s coal division experienced substantial growth as European demand surged amid natural gas shortages caused by disruptions in Russian supply. While competitors like BHP and Rio Tinto encountered slowdowns due to diminished Chinese demand for iron ore and copper concentrates, Glencore’s coal segment propelled record earnings and dividend projections surpassing $10 billion.
In September 2022, Glencore pledged to achieve net-zero carbon emissions by 2050 and set an interim goal of reducing its carbon footprint by 40% relative to 2019 levels by 2035, aligning with the objectives of the Paris Agreement.
November 2023 marked Glencore’s acquisition of Teck Resources’ steelmaking coal assets for $9 billion along with announcements to spin off its coal holdings by 2025 through listings on the NYSE, Toronto Stock Exchange, and Johannesburg Stock Exchange. However, after finalizing the purchase in July 2024, Glencore reversed this decision in August following shareholder consultations where over 95% favored retaining coal operations.
The July 2024 acquisition of Elk Valley Resources notably expanded Glencore’s coal portfolio, boosting potential saleable metallurgical coal output by more than 30%, with average mine lifespans extending beyond 2050 at around 31 years. Despite maintaining its coal assets, Glencore continues to commit to climate neutrality by mid-century but will need to revise its climate strategy to reflect the increased exposure resulting from this acquisition.
Colombia
In 2006, Swiss public broadcaster (TSR) exposed claims of corruption and serious human rights abuses linked to Glencore's Colombian mining arm, Cerrejón. Francisco Ramirez, a union leader locally, accused Cerrejón of forcibly seizing land and displacing communities to enlarge mining areas, allegedly with the support of Colombian government officials. Additionally, a spokesperson from the Wayuu indigenous group accused paramilitary and military forces associated with Cerrejón’s security of violently expelling Wayuu inhabitants in what was described as a "massacre."
A 2012 investigation by the BBC uncovered documents indicating that Glencore had made payments to affiliates of paramilitary groups involved in killings in Colombia. In 2011, testimony from ex-paramilitaries accepted by a Colombian court suggested that land seizures were driven by intentions to sell the territory to Glencore’s Prodeco subsidiary for surface coal mining. Glencore contested this court decision.
In 2009, Prodeco, operated by Glencore/Xstrata, received fines nearing $700,000 for breaching environmental regulations, including unauthorized waste disposal and failure to implement an environmental management plan.
The Netherlands-based NGO Pax for Peace conducted research into Prodeco’s operations and revealed that between 1996 and 2006, communities in the Cesar coal region—supplying European power plants—were subjected to violence from paramilitary groups allegedly backed by Prodeco through funding, equipment provision, and intelligence sharing. Pax characterized the coal extracted by Prodeco as "Blood Coal," drawing attention to ongoing threats against human rights activists in the area.
Democratic Republic of the Congo
Glencore’s Luilu copper refinery employed acid leaching techniques and permitted acidic waste discharge into a nearby river for three years following acquisition. CEO Ivan Glasenberg admitted delays in cleanup efforts but emphasized that pollution began prior to Glencore’s ownership and has since stopped. Investigations uncovered child labor practices at the Tilwezembe mine, which Glencore had closed in 2008 due to declining copper prices; Glasenberg denied any company profits from child labor activities, attributing such mining to local artisanal miners. Nonetheless, copper originating from this site was traced back to Glencore’s Zambian smelter.
The company faced accusations of dealing in illegal conflict minerals, allegations it has denied. In 2012, Glencore acquired interests in the Kansuki mine located in Katanga Province through complex transactions involving Dan Gertler, a close associate of then-President Joseph Kabila. Glencore funded Kansuki’s development and covered expenses for partner firms connected to Gertler, although it maintained it was not expanding its DRC portfolio at that time.
In 2007, Glencore purchased a 50% stake in SAMREF Congo SPRL, which holds an 80% interest in the Mutanda Mine. Global Witness drew attention to contentious advice recommending that state-owned Gécamines sell its remaining 20% stake to an entity linked with Gertler. Glencore manages Mutanda and has consistently responded to related accusations.
In March 2018, Glencore entered into an agreement to supply one-third of its cobalt production to China’s battery recycler GEM, extending this contract through 2029. CEO Glasenberg highlighted cobalt’s critical role in electric vehicle manufacturing but indicated openness to divesting DRC cobalt assets if financially justified. Legal disputes over royalties involving Gertler and Gécamines raised concerns about increasing Chinese influence given the DRC supplies 60% of global cobalt ore while China processes over 80%.
By late 2018, GEM ceased cobalt purchases due to falling prices and market oversupply. Export interruptions at the Kamoto Project caused by uranium contamination prompted Glencore to invest $25 million in ion-exchange refining technology.
A June 2018 debt-for-equity restructuring led Katanga Mining Ltd. to write off $5.6 billion in debt and pay $150 million to Gécamines. Simultaneously, Glencore resumed royalty payments to Ventora Development—controlled by Gertler—after a U.S. sanctions-related legal dispute threatened supplies of copper and cobalt essential for lithium-ion batteries. These payments were made in currencies other than U.S. dollars to circumvent sanctions while ongoing negotiations addressed tax and royalty matters.
Following the introduction of a new mining code by the DRC government in July 2018 imposing increased taxes, Glencore entered discussions with authorities and considered pursuing legal remedies.
In June 2021, Glencore announced plans to restart operations at Mutanda mine by late that year with production expected in 2022, supported by a long-term cobalt supply agreement established with Tesla Motors in mid-2020.
Between 2007 and 2018, Glencore reportedly paid $27.5 million in bribes to officials within the DRC; in December 2022, it reached a settlement agreement valued at $180 million with Congolese authorities concerning these allegations.
Morocco
During 2013 and 2014, a subsidiary of Glencore Xstrata obtained two licences for offshore drilling located off the coast of Western Sahara.
Zambia
In 2011, officials in Zambia expressed concerns that pollution from Glencore's Mopani mine was contributing to acid rain and health problems impacting around five million people. A significant upgrade to the facility, completed in March 2014, led to a 97% reduction in sulphur dioxide emissions, bringing levels closer to World Health Organization (WHO) guidelines. Before this improvement, emissions were as much as 70 times above WHO limits; following the upgrade, levels remain more than twice the recommended threshold.
In January 2019, Ignazio Cassis, head of the Swiss Federal Department of Foreign Affairs, visited Mopani Copper Mines, which also produces cobalt. This visit occurred amid Swiss human rights policies for commodity companies and attracted criticism from organizations such as Amnesty International. Cassis justified the trip by highlighting ongoing modernization efforts at the plant, enhanced healthcare provisions, and better training programs for employees.
Paradise Papers
On 5 November 2017, the Paradise Papers disclosed that Glencore extended a $45 million loan to Israeli billionaire Dan Gertler in return for his assistance with officials from the Democratic Republic of Congo during negotiations over a joint venture involving state-owned Gécamines at the Katanga copper mine. Telis Mistakidis, a major Glencore shareholder, served on the board. Having effectively gained control over Katanga, Glencore agreed to back the joint venture. The loan was structured to be repaid if no deal was reached within three months. Both Gertler and Glencore denied any misconduct. The law firm Appleby, which had collaborated with Glencore and its founder Marc Rich on key projects—including after Rich's 1983 indictment—was involved. Rich faced federal charges in the U.S. for tax evasion and controversial oil transactions during the Iran hostage crisis, later receiving a disputed presidential pardon from Bill Clinton on his final day in office.
In 2024, Chilean tax authorities initiated actions to recover more than $1.5 billion in unpaid taxes from Glencore.
Glencore’s Australian division executed roughly $25 billion worth of intricate cross-currency interest rate swaps—financial instruments currently under scrutiny by the Australian Taxation Office for possible tax avoidance. Additionally, Glencore holds co-ownership of SwissMarine’s extensive coal shipping fleet.
Reactions to U.S. sanctions
In April 2018, Glencore reduced its involvement with Oleg Deripaska by abandoning plans to exchange an 8.75% stake in aluminum producer United Co. Rusal for shares in Deripaska’s London-listed company En+ Group Plc. CEO Ivan Glasenberg also stepped down from Rusal’s board.
In March 2022, Glencore publicly condemned the 2022 Russian invasion of Ukraine and announced a review of its operations, including holdings in En+ (10.55%) and Rosneft (less than 1%). The company stressed that it maintained "no operational footprint in Russia." Nevertheless, British media reported that Glencore continued loading Russian oil products during March 2022, sustaining its role in trading Russian crude despite mounting pressure on competitors such as BP Plc and Shell Plc to cease such purchases.
Inquiry by the U.S. Department of Justice
On 3 July 2018, Glencore announced it had received a subpoena from the U.S. Department of Justice requesting documents related to its adherence to the Foreign Corrupt Practices Act and anti-money laundering regulations concerning its activities in Nigeria, the Democratic Republic of Congo, and Venezuela dating back to 2007. Prior information suggested that the UK's Serious Fraud Office was evaluating a potential bribery investigation involving Glencore's transactions with Dan Gertler and former DRC President Joseph Kabila.
On 24 May 2022, Glencore admitted guilt on several bribery offenses and consented to pay fines totaling around $1.5 billion.
International Rights Advocates v. Apple, Microsoft, Dell, Tesla
On 15 December 2019, International Rights Advocates initiated legal action against Apple, Microsoft, Dell, and Tesla, including Glencore as a defendant. The lawsuit contends that these corporations profited from child labor in cobalt mining operations connected to mines owned by Glencore, which supplied cobalt to Umicore for manufacturing lithium batteries used in their products. Glencore responded by affirming its strict policy against any child or forced labor practices.
Although initially dismissed, International Rights Advocates appealed the case in 2022.
Investigation by U.S. Commodities Futures Trading Commission
In April 2019, the U.S. Commodity Futures Trading Commission (CFTC) launched an inquiry into Glencore for possible violations of the Commodity Exchange Act and corrupt practices related to commodities trading. By May 2022, Glencore had pleaded guilty to corruption charges involving bribery of foreign officials spanning from 2007 to 2018 and agreed to a $1.8 billion penalty.
Amid the COVID-19 pandemic's financial pressures, Glencore halted dividend distributions in August 2020 to focus on reducing debt, marking it as the first leading mining firm to take such action.
Long-term cobalt supply agreement with Tesla
In June 2020, Tesla Motors entered into an agreement with Glencore to secure future cobalt supplies for their lithium-ion battery production. A year prior, BMW had established a similar contract with Glencore and the Bou Azzer mine located in Morocco. Initially planning to phase out cobalt due to ethical concerns, Tesla reversed this stance, significantly enhancing cobalt demand prospects according to industry analysts.
UK Serious Fraud Office charges and ongoing probes
In 2022, Glencore’s UK branch admitted guilt twice on corruption charges brought by the SFO, accused of disbursing over £30 million in bribes between 2011 and 2016 to secure oil contracts and illicit profits. On May 24, Glencore Energy UK Limited pleaded guilty to five counts of bribery and two counts of failing to prevent bribery under the UK Bribery Act 2010. The SFO revealed that more than £50 million in bribes were paid across Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, and South Sudan, describing the conduct as "profit-driven bribery and corruption."
While acknowledging wrongdoing, Glencore emphasized ongoing ethical reforms initiated before the US DOJ investigation began. The company projected that total fines would not surpass the provisions set aside in 2021 for settling these matters.
On June 21, another UK subsidiary admitted guilt on seven bribery charges linked to oil operations spanning Nigeria, Cameroon, Equatorial Guinea, Ivory Coast, and South Sudan from 2012 through 2016. The SFO reported over £40 million paid in bribes for officials’ illicit actions. Glencore maintained its estimate that fines would reach up to £280 million.
Investigations by Swiss and Dutch authorities continue against Glencore. These inquiries might be associated with Vitol—a Swiss-Dutch commodity trading competitor often regarded as comparable or larger than Glencore—which is facing similar legal scrutiny in countries rich in natural resources.
Allegations of Human Rights Violations
Since 2010, the Business & Human Rights Resource Centre has recorded more than 70 claims of human rights violations linked to Glencore.
Lobbying Activities
In March 2019, The Guardian Australia revealed that between 2017 and 2019, Glencore partnered with consulting firm CT Group to execute a worldwide lobbying effort aimed at promoting coal. This initiative involved discrediting environmental campaigners, swaying political figures, and disseminating pro-coal content across social media platforms. Glencore stated that this campaign concluded in February 2019.
Impact on Australian Water Resources
In November 2023, Glencore disclosed intentions to inject up to 110,000 tonnes of carbon dioxide annually into an Australian groundwater basin. Specialists cautioned that this action might raise water acidity levels, cause rock dissolution, mobilize heavy metals, and ultimately make the water unsuitable for agricultural use and habitation in remote regions.
Board of Directors
As of July 2025:
- Kalidas Madhavpeddi (non-executive chairman)
- Gary Nagle (Chief Executive Officer)
- Martin Gilbert (non-executive director)
- Liz Hewitt (non-executive director)
- Gill Marcus (non-executive director)
- Cynthia Carroll (non-executive director)
- John Wallington (non-executive director)
- María Margarita Zuleta (non-executive director)