Glasenberg Glencore Faces Scrutiny Over Labour Practices

Glencore, a multinational commodity trading and mining company, has been under fire for its labor practices, particularly in the Democratic Republic of Congo.

The company has been accused of using child labor in its cobalt mines, a key component in electric vehicle batteries.

Glencore has denied these allegations, but an investigation by the BBC found evidence of child labor at a mine in the DRC.

Glencore's labor practices have been scrutinized by human rights groups and media outlets, leading to increased public awareness of the issue.

Curious to learn more? Check out: Gold Stock Company Did Agniko Mines Buy Recently

Ivan Glasenberg, the CEO of Glencore, announced his retirement next year, marking a significant change for the company.

Glasenberg has led Glencore, the world's largest commodities trader, for a long time.

He will be stepping down next year, completing a change of the old guard at the top of the company.

As a leader, it's essential to know how to delegate effectively, and Glasenberg is a master of this skill. He has a reputation for trusting his team to make decisions and take ownership of their work.

Glasenberg's leadership style is built on a foundation of trust and empowerment, which has earned him the respect and loyalty of his team. This approach has allowed him to tap into the collective knowledge and expertise of his team, driving innovation and growth.

By empowering his team, Glasenberg has been able to achieve a high level of autonomy, which has in turn allowed him to focus on high-level strategy and decision-making. This has enabled him to drive the company forward with a clear vision and purpose.

Glasenberg's ability to inspire and motivate his team is a key factor in his success as a leader. He has a unique ability to bring out the best in people and to create a sense of shared purpose and direction.

Ivan Glasenberg announced his retirement as CEO of Glencore next year, after a long and successful tenure. He's been replaced by Nagle, a fellow South African with a degree in commerce and accounting.

Nagle has kept a low profile since being named Glasenberg's successor, giving no media interviews. He has, however, stated that Glencore will continue producing coal "responsibly", suggesting a demerger of the coal business is unlikely.

Glencore is targeting a 50 per cent reduction in its total emissions by 2035, mainly by running down its coal mines. This strategy has received support from investors and groups like Climate Action 100+.

The new management team, led by Nagle and Madhavpeddi, faces the challenge of maintaining a good relationship with the outgoing CEO. Glasenberg and his former lieutenants still control about 25 per cent of Glencore.

Madhavpeddi has a wealth of experience in the mining industry, China, and the DRC, where Glencore has invested heavily. He's also familiar with the company's operations, having joined the board in February 2020.

Glencore has faced a criminal probe in Switzerland over alleged corruption in the Democratic Republic of the Congo, with investigations opened in June 2020.

Glencore is at the center of a US legal case against Big Tech linked to child labour in the Democratic Republic of Congo, a case that was filed in December 2019.

Swiss cobalt traders Glencore and Trafigura deal very differently with miners in the Democratic Republic of Congo, many of whom are children, highlighting the need for more responsible trading practices.

Check this out: Glencore Congo

Glencore's stock price is down 40 per cent since listing in London in 2011.

Investors are worried about Glencore's regulatory issues, with some funds refusing to own the company due to these concerns.

Nagle, Glencore's new CEO, will be subject to conventional remuneration arrangements, unlike his predecessor Glasenberg.

Nagle will also focus on improving Glencore's safety record and potentially pruning its long tail of marginal assets.

The world has moved on from Glencore's issues, but the company still has a lot of challenges to overcome.

Glencore's transition to more institutional investor-friendly behaviour is a significant turning point, according to Barclays analyst Amos Fletcher.

Swiss cobalt traders Glencore and Trafigura deal very differently with miners in the Democratic Republic of Congo, many of whom are children.

Glencore, one of the traders, has a very different approach to child labour compared to Trafigura.

This difference in approach is a crucial step in preventing child labour in the cobalt mining industry.

Trafigura, on the other hand, has been criticized for its role in the Democratic Republic of Congo's cobalt mining industry, where many children are involved.

Explore further: Cleanspark Acquires Five Bitcoin Mining Facilities in Georgia

Glasenberg, the CEO of Glencore, has been instrumental in shaping the company's strategy and direction. He has been at the helm since 2001.

Glencore's expansion into the agricultural sector has been a significant development, with the company acquiring a 55% stake in Viterra in 2010. This move marked a major shift in the company's focus towards the production and trading of agricultural commodities.

The acquisition of Viterra provided Glencore with a significant presence in the Canadian grain market, with a network of 15 grain elevators and a storage capacity of over 20 million tonnes.

A unique perspective: Glencore Viterra

Rivals in the industry are being urged to shut down their mines due to the devastating environmental impact they have caused.

The Environmental Protection Agency has reported that these mines have released toxic chemicals into the water supply, affecting the health of thousands of people.

The EPA's findings have been met with widespread outrage, with many calling for stricter regulations on mining practices.

The industry's current practices are unsustainable and must be changed to prevent further damage.

The EPA has set a deadline for the mines to shut down, but it remains to be seen if the industry will comply.

Analysts and investors think a settlement with the DOJ is possible within the next 12 to 18 months.

The typical length of an investigation is three to five years, and three years have already elapsed. This suggests a settlement could be reached sooner than expected.

Fletcher is optimistic about the prospect of a settlement, and it's likely to be a positive development for the company.

Tesla plans to buy cobalt, a key component in the production of lithium-ion batteries, which are essential for electric vehicles.

Cobalt is a crucial material for making electric vehicle batteries, and Tesla is taking steps to secure its supply.

Tesla aims to reduce its reliance on third-party cobalt suppliers by mining the metal itself.

The company is likely to use its own resources to extract cobalt, rather than relying on external suppliers.

Tesla's move to buy cobalt is part of its efforts to increase its control over the supply chain for electric vehicle production.

By controlling the cobalt supply, Tesla can reduce its costs and improve the efficiency of its battery production.

Tesla's focus on cobalt is a strategic move to ensure a steady supply of the essential material for its electric vehicles.

Expand your knowledge: Tesla Earning Call Date