Xstrata
Encyclopedia
Xstrata plc is a global mining company headquartered in Zug
, Switzerland
and with its registered office in London
, United Kingdom
. It is a major producer of coal (and the world's largest exporter of thermal coal), copper, nickel, primary vanadium
and zinc
and the world's largest producer of ferrochrome
. It has operations in 19 countries across Africa, Asia, Australasia, Europe, North America and South America.
Xstrata has its primary listing on the London Stock Exchange
and is a constituent of the FTSE 100 Index
. It has a secondary listing on the SIX Swiss Exchange. Its largest shareholder is Glencore International plc
, which has a stake of approximately 34%.
It was first listed on the London Stock Exchange
in 2002 at which time it acquired Glencore
's coal assets in Australia and South Africa.
In 2003, it doubled in size with the A$2.9 billion takeover of Australian copper, zinc
and lead miner MIM Holdings
. However, it failed in a 2005 bid for another Australian miner, WMC Resources
, which was captured by BHP Billiton
, the world's biggest mining company.
In 2004 Xstrata closed its recently purchased Windimurra Vanadium plant in Western Australia which had the effect of increasing Vanadium prices received for Xstrata's other Vanadium mines around the world. Many hundreds of people were put out of work and now many Western Australians are not keen to see Xstrata involved in other mining activities in the state because of this action.
In August 2005, Xstrata purchased a 19.9% stake in Falconbridge Limited, a diversified Canadian mining company producing copper, nickel, aluminum, lead and zinc
. Following a contested take-over battle with Inco Limited, Xstrata successfully acquired the remaining 80.1% of Falconbridge in August 2006.
In 2006, The Northern Territory
and Australian Governments approved the expansion of the McArthur River zinc mine, near the popular fishing destination of Borrooloola. The expansion involves diversion of the river to a new 5.5 km channel, to allow construction of a massive open-cut pit in the existing river.
On behalf of the Traditional Owners of the region – the Yanyuwa, Mara
, Garrawa and Gurdanji peoples – the Northern Land Council launched a legal challenge to the Northern Territory
Government’s decision to approve the mining of and diversion of the McArthur River. On 1 May 2007, The Northern Territory
Supreme Court ruled in favour of the Northern Land Council to stop the expansion. On 3 May 2007, the Northern Territory
government rushed through retrospective legislation to overrule the court decision and allow the open-cut mine to proceed.
. In 2008, its degree of transnationality according to the Transnationality Index
was 93.2 percent and ranked first place. It has major operations/projects in eighteen countries (Australia, Argentina, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, Jamaica, New Caledonia
, Norway, Papua New Guinea, Peru, South Africa, Spain, Tanzania, the United States and the United Kingdom) and it is a major producer of copper, coking coal, thermal coal, nickel, ferrochrome
, vanadium
and zinc
. It has smaller scale involvement in aluminum, gold, lead and silver. It also has interests in platinum
group metals through its 24.9% stake in Lonmin
.
Mine in NSW, Australia. Xstrata have managed this mine on behalf of the Bulga Coal Pty Ltd shareholders since 2001 when it purchased Enex Resorces Limited from Glencore International AG. The Bulga Coal mine site serves as the headquarters for Xstrata Coal's NSW division.
from Centennial Coal Company. Since the purchase of the Anvil Hill Coal Mine
Xstrata Coal, an Australia-based subsidiary of Xstrata PLC, has come under media scrutiny numerous times in regards to the company's management of the pre-mining stage of the mining project, most notably scrutinised has been the community relations approach of Xstrata Coal towards the local community, with allegations of misleading actions on behalf of the company being cited in the local and regional media, and other regional and local communication channels. Including the setting up of a local action group in opposition to the mine named WAG (Wybong Action Group).
, whom media reports accuse of having entered into illegal deals with rogue state
s. Glencore
is reported to serve as a marketing partner for Xstrata. As of 2006, Glencore
leaders Willy Strothotte and Ivan Glasenberg
are on the board of Xstrata, which Strothotte chairs. According to The Sunday Times, Glencore controls 40% of Xstrata stock and has appointed the Xstrata CEO, Mick Davis.
Zug
Zug , is a German-speaking city in Switzerland. The name ‘Zug’ originates from fishing vocabulary; in the Middle Ages it referred to the right to ‘pull up’ fishing nets and hence to the right to fish.The city of Zug is located in the Canton of Zug and is its capital...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and with its registered office in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It is a major producer of coal (and the world's largest exporter of thermal coal), copper, nickel, primary vanadium
Vanadium
Vanadium is a chemical element with the symbol V and atomic number 23. It is a hard, silvery gray, ductile and malleable transition metal. The formation of an oxide layer stabilizes the metal against oxidation. The element is found only in chemically combined form in nature...
and zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
and the world's largest producer of ferrochrome
Ferrochrome
Ferrochrome is an alloy of chromium and iron containing between 50% and 70% chromium.The ferrochrome is produced by electric arc melting of chromite, an iron magnesium chromium oxide and the most important chromium ore. Most of the world's ferrochrome is produced in South Africa, Kazakhstan and...
. It has operations in 19 countries across Africa, Asia, Australasia, Europe, North America and South America.
Xstrata has its primary listing on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. It has a secondary listing on the SIX Swiss Exchange. Its largest shareholder is Glencore International plc
Glencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...
, which has a stake of approximately 34%.
History
The company was founded in 1926 in Switzerland as Südelektra, an infrastructure and electricity projects concern operating in Latin America. In 1990, Marc Rich + Co AG became its majority shareholder. In the 1990s it diversified into mining and disposed of its non-core businesses.It was first listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 2002 at which time it acquired Glencore
Glencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...
's coal assets in Australia and South Africa.
In 2003, it doubled in size with the A$2.9 billion takeover of Australian copper, zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
and lead miner MIM Holdings
Mount Isa Mines
The Mount Isa copper, lead, zinc and silver mines near Mount Isa, Queensland, Australia are part of the Xstrata mining company.-History:In 1923 the orebody containing lead, zinc and silver was discovered by the miner John Campbell Miles. The company Mount Isa Mines was founded 1924 but full scale...
. However, it failed in a 2005 bid for another Australian miner, WMC Resources
WMC Resources
WMC Resources Limited was an Australian diversified mining and fertilizer company formerly listed on the Australian Stock Exchange. WMC was an acronym for Western Mining Corporation. It was delisted on 29 June 2005 following a successful takeover by BHP Billiton...
, which was captured by BHP Billiton
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...
, the world's biggest mining company.
In 2004 Xstrata closed its recently purchased Windimurra Vanadium plant in Western Australia which had the effect of increasing Vanadium prices received for Xstrata's other Vanadium mines around the world. Many hundreds of people were put out of work and now many Western Australians are not keen to see Xstrata involved in other mining activities in the state because of this action.
In August 2005, Xstrata purchased a 19.9% stake in Falconbridge Limited, a diversified Canadian mining company producing copper, nickel, aluminum, lead and zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
. Following a contested take-over battle with Inco Limited, Xstrata successfully acquired the remaining 80.1% of Falconbridge in August 2006.
In 2006, The Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...
and Australian Governments approved the expansion of the McArthur River zinc mine, near the popular fishing destination of Borrooloola. The expansion involves diversion of the river to a new 5.5 km channel, to allow construction of a massive open-cut pit in the existing river.
On behalf of the Traditional Owners of the region – the Yanyuwa, Mara
Mara
-Social groups:*Mara people, in northeastern India and western Myanmar* Mara language, a language spoken by Mara people*Mara Salvatrucha, a violent criminal gang in Mexico, Central America, Canada, and the United States...
, Garrawa and Gurdanji peoples – the Northern Land Council launched a legal challenge to the Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...
Government’s decision to approve the mining of and diversion of the McArthur River. On 1 May 2007, The Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...
Supreme Court ruled in favour of the Northern Land Council to stop the expansion. On 3 May 2007, the Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...
government rushed through retrospective legislation to overrule the court decision and allow the open-cut mine to proceed.
Operations
Since the turn of the millennium it has developed from a small player into one of the world's largest diversified mining groups with the help of a series of large acquisitionsMergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
. In 2008, its degree of transnationality according to the Transnationality Index
Transnationality Index
The Transnationality Index is a means of ranking multinational corporations that is employed by economists and politicians. It is calculated as the arithmetic mean of the following three ratios :* the ratio of foreign assets to total assets* the ratio of foreign sales to total sales* the ratio of...
was 93.2 percent and ranked first place. It has major operations/projects in eighteen countries (Australia, Argentina, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, Jamaica, New Caledonia
New Caledonia
New Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle of...
, Norway, Papua New Guinea, Peru, South Africa, Spain, Tanzania, the United States and the United Kingdom) and it is a major producer of copper, coking coal, thermal coal, nickel, ferrochrome
Ferrochrome
Ferrochrome is an alloy of chromium and iron containing between 50% and 70% chromium.The ferrochrome is produced by electric arc melting of chromite, an iron magnesium chromium oxide and the most important chromium ore. Most of the world's ferrochrome is produced in South Africa, Kazakhstan and...
, vanadium
Vanadium
Vanadium is a chemical element with the symbol V and atomic number 23. It is a hard, silvery gray, ductile and malleable transition metal. The formation of an oxide layer stabilizes the metal against oxidation. The element is found only in chemically combined form in nature...
and zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
. It has smaller scale involvement in aluminum, gold, lead and silver. It also has interests in platinum
Platinum
Platinum is a chemical element with the chemical symbol Pt and an atomic number of 78. Its name is derived from the Spanish term platina del Pinto, which is literally translated into "little silver of the Pinto River." It is a dense, malleable, ductile, precious, gray-white transition metal...
group metals through its 24.9% stake in Lonmin
Lonmin
Lonmin plc , formerly Lonrho plc, is a producer of platinum group metals operating in the Bushveld Complex of South Africa. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.-History:...
.
Bulga Coal
Xstrata are currently the operators of the Bulga CoalBulga Coal
Bulga Coal Pty Limited is a coal-mining company based in Singleton, New South Wales, Australia. The company operates two mines Bulga Surface Operations and Beltana Longwall Mining which form the Bulga Coal Complex. The company is a joint venture between Oakbridge Pty Ltd and Nippon Oil Australia...
Mine in NSW, Australia. Xstrata have managed this mine on behalf of the Bulga Coal Pty Ltd shareholders since 2001 when it purchased Enex Resorces Limited from Glencore International AG. The Bulga Coal mine site serves as the headquarters for Xstrata Coal's NSW division.
Mangoola (Anvil Hill) Coal Mine Controversy
In 2007 Xstrata Coal, based in Sydney, bought Anvil Hill Coal MineAnvil Hill Coal Mine
The Anvil Hill Coal Mine is proposed for the upper Hunter Valley in New South Wales. There is strong support for and against the coal mine within the Hunter Valley and other areas....
from Centennial Coal Company. Since the purchase of the Anvil Hill Coal Mine
Anvil Hill Coal Mine
The Anvil Hill Coal Mine is proposed for the upper Hunter Valley in New South Wales. There is strong support for and against the coal mine within the Hunter Valley and other areas....
Xstrata Coal, an Australia-based subsidiary of Xstrata PLC, has come under media scrutiny numerous times in regards to the company's management of the pre-mining stage of the mining project, most notably scrutinised has been the community relations approach of Xstrata Coal towards the local community, with allegations of misleading actions on behalf of the company being cited in the local and regional media, and other regional and local communication channels. Including the setting up of a local action group in opposition to the mine named WAG (Wybong Action Group).
George Fisher mine
In October 2010, Xstrata's A$274 million expansion plan for the George Fisher mine at Mount Isa was approved by the government of QueenslandRelationship with Glencore
Xstrata is also noted for its association with the commodity trader GlencoreGlencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...
, whom media reports accuse of having entered into illegal deals with rogue state
Rogue state
Rogue state is a controversial term applied by some international theorists to states they consider threatening to the world's peace. This means meeting certain criteria, such as being ruled by authoritarian regimes that severely restrict human rights, sponsor terrorism, and seek to proliferate...
s. Glencore
Glencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...
is reported to serve as a marketing partner for Xstrata. As of 2006, Glencore
Glencore
Glencore International plc is a multinational mining and commodities trading company headquartered in Baar, Switzerland and with its registered office in Saint Helier, Jersey...
leaders Willy Strothotte and Ivan Glasenberg
Ivan Glasenberg
Ivan Glasenberg, is the CEO of Glencore, one of the world's largest commodity trading companies. He is also on the boards of mining companies Xstrata plc and Minara Resources Ltd.-Background and early career:...
are on the board of Xstrata, which Strothotte chairs. According to The Sunday Times, Glencore controls 40% of Xstrata stock and has appointed the Xstrata CEO, Mick Davis.
Senior management
| name | role | salary | bonus | total |
|---|---|---|---|---|
| Michael Davis | Chief Executive Officer | $2,315,000 | $2,701,530 | $5,016,530 |
| Trevor Reid | Chief Financial Officer | $1,157,500 | $1,348,977 | $2,506,477 |
| Santiago Zaldumbide | Executive Director | $1,370,972 | $1,796,522 | $3,167,494 |
External links
- Xstrata official website
- Xstrata Dreaming: The Struggle of Aboriginal Australians against a Swiss Mining Giant CorpWatchCorpWatchCorpWatch is a research group based in San Francisco, California, USA. The group's mission is non-profit investigative research and journalism to expose corporate malfeasance and to advocate for multinational corporate accountability and transparency...