Glencore

This article is part of the Mining and Metals project of Spinwatch

Glencore logo

Swiss-based mining-giant Glencore controls 60% of the world’s zinc, half the world’s copper, 38% of aluminium and 9% of the global grain market. In 2011 it won the dubious award of the world's "most opaque mining company", courtesy of Publish What You Pay Norway (PWYP).

In addition to its own operations, Glencore holds interests in several other major mining companies, including 34.4% in Xstrata, 44% economic (39% voting) in Century Aluminum, 73.4% in Minara Resources, 74.8% in Katanga Mining, 8.8% in UCR, 51.5% in Chemoil Energy and 32.2% in Recylex. Glencore holds a market capitalization of $33bn and was first listed on the London Stock Exchange in May 2011.

The most opaque mining company of them all

Piping Profits, published Publish What You Pay Norway in 2011, showed that Glencore was the world's "most opaque mining company." Though the corporation controls relatively few subsidiaries compared to others in the sector - 46 compared to Rio Tinto's 926 - 46% of its subsidiary companies are incorporated in 'secrecy jurisdictions' such as the US state of Delaware, the Netherlands or Bermuda. Secrecy jurisdictions are defined as: "places where among many other advantages for companies requiring secrecy, company accounts and beneficial ownership details are not publicly available."

As PWYP state: "This is relevant given that Glencore’s 2010 financial statement confirms that its effective tax rate for its $234m tax bill, ‘was 9.3% compared to 12.6% for 2009’ on revenues of $144.9 billion." Glencore's net profit in 2010 was $4.1bn. The Guardian reports that Glencore 'paid only $2m in tax [in 2010] on European revenues of more than $1bn.'

Tax Avoidance in Zambia

In April 2011 a complaint was made to the Organisation for Economic Co-operation and Development (OECD) regarding Glencore's payment of taxes in Zambia. Glencore's 73% owned subsidiary, Mopani Copper Mines, is accused of publishing "unexplainable" increases in costs in order to negate tens of millions of dollars in taxes to the Zambian state.

Over Two Fatalities Every Month

Glencore's 2011 corporate sustainability report announced that between 2008 and 2010, its operations incurred over 56 fatalities. In interview, Glencore spokesmen said, 'The majority occurred in Africa and a significant proportion in South America and Asia. Most of them occurred underground.' When questioned over its procedure for compensating the families of the deceased, Glencore's chairman of its board's health, safety, environment committee Peter Coates, responded, 'It's not something that [the board] have addressed to date.'

Glencore does not publish details of its non-fatal serious injuries, in accordance with Global Reporting Initiative standards.

Contact

Address:

Glencore International AG

Baarermattstrasse 3

CH-6340 Baar

Switzerland

Glencore UK address:

50 Berkeley Street

London

W1J 8HD

Telephone: +41 41 709 2000 Fax: +41 41 709 3000

Email: info@glencore.com

Website: glencore.com

Facebook: glencore

Resources

Company Fact Sheet