The chief executive of Swiss mining group Xstrata has suggested that an independent listing of both his company and commodities giant Glencore would be unsustainable.

"/> The chief executive of Swiss mining group Xstrata has suggested that an independent listing of both his company and commodities giant Glencore would be unsustainable.

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MINING

Xstrata boss hints at Glencore merger

The chief executive of Swiss mining group Xstrata has suggested that an independent listing of both his company and commodities giant Glencore would be unsustainable.

The chief executive of mining group Xstrata has suggested that an independent listing of both his company and commodities giant Glencore would be unsustainable, the Financial Times reported on Tuesday.
 

His reported comments, which the business daily took as a hint of a possible merger, came amid persistent reports that Glencore was planning a first stock market listing in the second quarter of this year.
 

Both companies are Swiss based, but only Xstrata is publicly listed on the London and Swiss stock exchanges.
 

The FT said Xstrata chief Mick Davis had told analysts in early February that it would be “unsustainable in the longer term” for both giants to be independently listed, according to analysts present.
 

Industry observers believe Glencore, which holds a 34.4 percent stake in the Anglo-Swiss group, could sell its holding or seek a merger with Xstrata, the newspaper reported.
 

On Monday, Xstrata announced the retirement of chairman Willy Strothotte after its annual general meeting on May 4.
 

Strothotte is also chairman of Glencore International AG and his departure from Xstrata would avoid a potential conflict of interest between the two companies.
 

Recent press reports have suggested that Glencore was planning a share listing in both London and Hong Kong exchanges, with a quarter of Glencore said to be worth $12 billion.
 

Glencore has declined to comment on the issue.

GLENCORE

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore

At least 19 illegal miners were killed on Thursday after part of a copper mine collapsed in southeastern DR Congo, Swiss-based mining giant Glencore said.

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore
Photo: AFP

The incident happened when two galleries caved in at a mine in the Kolwezi area operated by Kamoto Copper Company (KCC), a subsidiary of Glencore.

“Tragically there were 19 fatalities today, with possible further unconfirmed fatalities,” Glencore said in a statement, which said there had been recurrent problems with illicit mining on its concessions.

Other reports suggest the death toll could be higher. 

The Congolese site Actualite.CD reported at least 36 deaths.

“The illegal artisanal miners were working two galleries in benches overlooking the extraction area. Two of these galleries caved in,” the company said.

Glencore said KCC had observed a “growing presence” of illegal miners, with on average 2,000 people a day intruding on its operating sites.

“KCC urges all illegal miners to cease from putting their lives at risk by trespassing on a major industrial site,” Glencore said.

Illegal mining is common and frequently deadly in Democratic Republic of Congo, where safety is often poor and risk-taking high.

Figures indicating the scale of the problem are sketchy, given that many mines are illegal and remote.

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