- Adds further CEO comments and details of labor issues from
sixth paragraph.
By Scott Patterson
Glencore PLC (GLEN.LN) Chief Executive Ivan Glasenberg Thursday
blamed a decline in the company's share price on "external factors"
including a fall in commodity prices.
In comments made during the company's annual general meeting in
Zug, Switzerland, Mr. Glasenberg said many commodities prices are
down largely because other mining companies have over produced
relative to demand. The CEO has been critical of iron-ore producers
for continuing to ramp up production of the steel-making ingredient
even as demand from China tapers off.
"I'm doing my level best to convince my competitors that we
should understand demand and supply," Mr. Glasenberg said.
Glencore's shares, which are up 2% this year, have shed 5% in the
last 12 months.
While Glencore doesn't produce iron ore, it is the world's
largest supplier of sea-borne thermal coal, which has declined
sharply in recent years as production has ramped higher. The mining
giant, in response to the price decline in coal, has curbed
production at coal mines in Australia and South Africa. Mr.
Glasenberg said he thinks coal "looks good going forward" in part
due to increased demand in Indonesia.
He said he expects copper supplies, which account for about 40%
of Glencore's mining sales, to move into a "deficit" in the near
term, in part due to declining ore grades in South America.
Mr. Glasenberg, in response to complaints from union officials
about how the company is handling a long-running worker dispute at
its Sherwin Alumina operation in Texas, said that operation "is not
very profitable" because of weak aluminum prices.
Union officials and workers traveled to Switzerland to complain
about a months-long lockout of about 450 workers. They said
Glencore isn't treating the workers fairly and that the lockout is
hurting Glencore's profits. Mr. Glasenberg said he can't make any
commitments about an agreement with the union and that "these great
profits you talk about…it ain't so good."
Glencore officials also fielded several complaints about the
company's coal-production facilities in Colombia, including
allegations that it is mistreating its workers and harming the
environment. Glencore Chairman Tony Hayward said at the meeting
that the company's Colombia coal mines are "a world-class operation
engaged in world-class community engagement."
Write to Scott Patterson at scott.patterson@wsj.com
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