Xstrata

{{Infobox company

| name = Xstrata plc

| logo = Xstrata.svg

| logo_size = 150px

| type = Private company

| fate = Reversed IPO – Private Company

| foundation = 1926

| location = Zug, Switzerland
(Head office)
London, England (Registered office)

| key_people = Sir John Bond (Chairman)
Mick Davis (CEO to 2014)

| industry = Metals, Mining and other Investments

| products = Precious Metals, Metals, Non Metals, and Special Ore Materials

| revenue = $31.618 billion (2012){{Cite web|url=http://www.xstrata.com/media/news/2013/03/05/0800CET/|title=Preliminary Results 2012|access-date=19 March 2013|archive-date=10 March 2013|archive-url=https://web.archive.org/web/20130310065850/http://www.xstrata.com/media/news/2013/03/05/0800CET/|url-status=dead}}

| operating_income = $4.790 billion (2012)

| net_income = $1.180 billion (2012)

| num_employees = 35,000 (2018)

| parent =

| subsid =

| homepage = [https://www.xstrata.com.mx/ www.xstrata.com.mx]

| footnotes =

}}

Xstrata plc was an Anglo-Swiss multinational mining company headquartered in Zug, Switzerland and with its registered office in London, United Kingdom.{{Cite web|url=http://www.xstrata.com/about/groupstructure/|title=Group structure|access-date=31 August 2010|publisher=Xstrata plc|archive-url=https://web.archive.org/web/20100823080628/http://www.xstrata.com/about/groupstructure/|archive-date=23 August 2010|url-status=dead}} It was 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 had operations in 19 countries across Africa, Asia, Australasia, Europe, North America and South America.{{Cite web|url=http://www.xstrata.com/about//|title=Xstrata operations|access-date=31 August 2010|publisher=Xstrata|archive-date=23 August 2010|archive-url=https://web.archive.org/web/20100823080623/http://www.xstrata.com/about/|url-status=dead}}

Xstrata had a primary listing on the London Stock Exchange and was a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £29 billion as of 23 December 2011, making it the 16th-largest company on the London Stock Exchange.{{cite web|url=http://www.stockchallenge.co.uk/ftse.php|title=FTSE All-Share Index Ranking|publisher=stockchallenge.co.uk| access-date=26 December 2011}} It had a secondary listing on the SIX Swiss Exchange. In the 2013 Forbes Global 2000, Xstrata was ranked as the 202nd largest public company in the world.{{cite web | url= https://www.forbes.com/companies/xstrata/#412a40e71817 | title= Forbes Global 2000 | website= Forbes | access-date= 30 July 2020}}

On 2 May 2013 Xstrata was acquired by Glencore.{{cite web|url=http://www.ft.com/cms/s/0/9d355d82-b31a-11e2-95b3-00144feabdc0.html#axzz2SGZjwRFS |archive-url=https://ghostarchive.org/archive/MeyBO |archive-date=11 December 2022 |url-access=subscription |url-status=live|title=Glencore finishes takeover of Xstrata|publisher=Financial Times|date=2 May 2013|access-date=3 May 2013}} Glencore later retired the Xstrata brand, and the company name changed from Glencore Xstrata plc to Glencore plc.

The Xstrata name survives in the Mexican foreign capital company Xstrata Mexico.{{Cite web |title=WHO ARE WE? {{!}} Xstrata |url=https://www.xstrata.com.mx/who-are-we/ |access-date=2022-04-24 |language=en-US}}

History

The company was founded in 1926 in Switzerland as Südelektra, an infrastructure and electricity projects concern operating in Latin America.{{Cite web

|author = Switzerland

|url = http://www.xstrata.com/corporate/group/history

|title = Xstrata History

|publisher = Xstrata

|access-date = 19 April 2011

|archive-url = https://web.archive.org/web/20090930074126/https://www.xstrata.com/corporate/group/history

|archive-date = 30 September 2009

|url-status = dead}}

In 1990, Marc Rich + Co AG became its majority shareholder. In the 1990s it diversified into mining and disposed of its non-core businesses.

Mick Davis was appointed CEO of Xstrata in 2001, and 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. Glencore controlled 40% of Xstrata stock in 2001.

In 2003, Xstrata doubled in size with the A$2.9 billion takeover of Australian copper, zinc and lead miner MIM Holdings.

{{Cite web|url=http://news.bbc.co.uk/1/hi/business/2923683.stm |title=Xstrata to buy Australian rival |publisher=BBC News |date=7 April 2003 |access-date=19 April 2011}} However, it failed in a 2005 bid for another Australian miner, WMC Resources, which was captured by BHP, the world's biggest mining company.{{Cite web|url=http://www.abc.net.au/news/newsitems/200503/s1318899.htm |title=BHP trumps Xstrata's WMC bid |publisher=ABC News |location=Australia |date=8 March 2005 |access-date=19 April 2011}}

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.{{Cite web |author=Switzerland |url=http://www.xstrata.com/media/news/2004/05/10/0001CET/ |title=Media Centre > News > release |publisher=Xstrata |access-date=19 April 2011 |archive-url=https://web.archive.org/web/20110307022455/http://www.xstrata.com/media/news/2004/05/10/0001CET/ |archive-date=7 March 2011 |url-status=dead}}

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 acquired the remaining 80.1% of Falconbridge in August 2006.{{Cite web|url=http://news.bbc.co.uk/1/hi/business/4794173.stm |title=Xstrata wins Falconbridge battle |publisher=BBC News |date=15 August 2006 |access-date=19 April 2011}}

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.{{Cite web

| author=ECNT

| title = McArthur River expansion

| url = http://mcarthurriver.wordpress.com/

| publisher=ECNT

| date = 19 January 2007}}

On behalf of the traditional owners of the region – the Yanyuwa, Marra, 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.{{Cite news

| author=Murray McLaughlin

| title = Martin under fire from Indigenous parliamentarians

| url = http://www.abc.net.au/7.30/content/2007/s1916717.htm

| publisher=ABC News

| date = 7 May 2007}}

On 28 May 2012 violent repression of local residents by the police in the province of Espinar, Cuzco, Peru, caused the deaths of two civilians. The inhabitants protested against the pollution of the water sources caused by Xstrata's mining activities.{{cite web|title = Clashes over Xstrata mine in Peru leave two dead | date = 29 May 2012| url = http://dawn.com/2012/05/29/clashes-over-xstrata-mine-in-peru-leave-two-dead/}} The government has decreed a State of Emergency and suspended civil liberties guaranteed in the Constitution.

On 2 May 2013 Xstrata was acquired by Glencore, and retired Davis and his team.{{cite news | url=http://www.mining-technology.com/news/newsx2-resources-secures-a-further-1bn-of-funds-to-expand-mining-business-4407261/ | title=X2 Resources secures a further $1bn of funds to expand mining business | work=Mining Technology | date=16 October 2014 | accessdate=14 May 2015}}{{Cite web|url=http://x2resources.com/the-team/|title=The Team :: x2 Resources|website=x2resources.com|access-date=2016-03-31}}

Xstrata Mexico, created in 2011 as a special-purpose vehicle to develop iron ore mining in Mexico, continues to use the Xstrata name, though it halted its mining activities in Mexico in 2015, and in 2016 moved into agribusiness.

Operations

After 2000, it developed from a small player into one of the world's largest diversified mining groups with the help of a series of large acquisitions. In 2008, its degree of transnationality according to the Transnationality Index was 93.2 percent and ranked first place.{{Cite web|url=http://www.unctad.org/templates/Page.asp?intItemID=2443&lang=1 |title=Largest TNCs |publisher=Unctad.Org |access-date=19 April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110523184646/http://www.unctad.org/Templates/Page.asp?intItemID=2443&lang=1 |archive-date=23 May 2011 }} It had 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 was a major producer of copper, coking coal, thermal coal, nickel, ferrochrome, vanadium and zinc. It had smaller scale involvement in aluminum, gold, lead and silver. It also had interests in platinum group metals through its 24.9% stake in Lonmin.

In July 2012, Xstrata opened its first office in mainland China. China accounted for up to one-third of Xstrata's global sales. The office was located in Shanghai.{{cite web

|title = Xstrata Opens First Office in China

|url = http://www.brightwire.com/news/228112-xstrata-opens-first-office-in-china

|publisher = BrightWire

|url-status = dead

|archive-url = https://archive.today/20130118204338/http://www.brightwire.com/news/228112-xstrata-opens-first-office-in-china

|archive-date = 18 January 2013}}

=Bulga Coal=

Xstrata were the operators of the Bulga Coal Mine in NSW, Australia. Xstrata managed this mine on behalf of the Bulga Coal Pty Ltd shareholders from 2001 when it purchased Enex Resources Limited from Glencore International AG. The Bulga Coal mine site served as the headquarters for Xstrata Coal's NSW division.

=Mangoola coal mine controversy=

In 2007 Xstrata Coal bought the Mangoola coal mine in the Hunter Valley from Centennial Coal.{{Cite web|url=http://findarticles.com/p/articles/mi_qa5382/is_200710/ai_n21298434 |title=Xstrata buys Tahmoor and Anvil Hill in Australia |publisher=Findarticles.com |access-date=19 April 2011}} After this, Xstrata Coal came under media scrutiny numerous times in regards to the company's management of the pre-mining stage of the mining project. Most notably scrutinised was 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. This included the setting up of a local action group in opposition to the mine named WAG (Wybong Action Group).{{Cite web|url=http://wag.org.au/about/ |title=Wybong Action Group |publisher=Wag.org.au |access-date=19 April 2011}}{{cite web|url=https://corpwatch.org/article/xstrata-dreaming-struggle-aboriginal-australians-against-swiss-mining-giant|title=Xstrata Dreaming: The Struggle of Aboriginal Australians against a Swiss Mining Giant|website=Corpwatch.org|access-date=3 March 2019}}

=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 Queensland{{Cite web|url=http://www.mining-journal.com/finance/xstrata-granted-approval-for-george-fisher-mine-expansion|access-date=31 October 2010|title=Mining Journal – Xstrata granted approval for George Fisher mine expansion}}

Relationship with Glencore

When Mick Davis was appointed CEO of Xstrata in 2001, Glencore controlled 40% of Xstrata stock.See also [http://www.xstrata.com/investors.php Xstrata: Investor disclosure] {{webarchive|url=https://web.archive.org/web/20061104154017/http://www.xstrata.com/investors.php|date=4 November 2006}}, accessed 22 October 2006{{Cite web |last=Bloom |first=Kevin |date=2012-02-05 |title=Glencore and Xstrata: Former Witsies create mining's most feared mega-merger |url=https://www.dailymaverick.co.za/article/2012-02-06-glencore-and-xstrata-former-witsies-create-minings-most-feared-mega-merger/ |access-date=2022-04-24 |website=Daily Maverick |language=en}} Xstrata had the option of using Glencore as a marketing agent.

{{Cite news

| author=Peter Koenig

| title = Secretive Swiss trader links City to Iraq oil scam

| url = http://business.timesonline.co.uk/printFriendly/0,,2020-528-1795993-9077,00.html

| publisher=The Sunday Times

| date = 25 September 2005

| access-date =22 October 2006

| location=London}}{{dead link|date=September 2024|bot=medic}}{{cbignore|bot=medic}}

{{Cite news

|author = Alex Schärer

|title = Die Erben des Marc Rich

|url = http://www.woz.ch/archiv/old/01/50/7366.html

|publisher = WochenZeitung

|date = 13 December 2001

|access-date = 22 October 2006

|language = de

|url-status = dead

|archive-url = https://archive.today/20121209185223/http://www.woz.ch/archiv/old/01/50/7366.html

|archive-date = 9 December 2012}} In 2006, Glencore leaders Willy Strothotte and Ivan Glasenberg were on the board of Xstrata, which Strothotte chaired.[http://www.xstrata.com/management.php Xstrata: List of non-executive directors], accessed 22 October 2006 {{webarchive |url=https://web.archive.org/web/20060821221606/http://www.xstrata.com/management.php |date=21 August 2006 }}

In June 2012, following a previous announcement of a merger between Glencore and Xstrata, the two companies began to reconsider the proposed retention package for their merger, due to shareholder opposition to a huge payout for executives. In total, 73 key executives stood to receive over GBP 170 million under the initial retention package.

{{cite web

|title = Glencore, Xstrata to Reconsider Retention Deal

|url = http://www.brightwire.com/news/223668-glencore-xstrata-to-reconsider-retention-deal

|publisher = BrightWire

|url-status = dead

|archive-url = https://archive.today/20130102092641/http://www.brightwire.com/news/223668-glencore-xstrata-to-reconsider-retention-deal

|archive-date = 2 January 2013}}

In July 2012, Xstrata announced that the Court Meeting originally scheduled for 12 July 2012 to approve the details of the merger between Xstrata and Glencore had been adjourned to 7 September 2012.

{{cite web

|title = Xstrata-Glencore Merger Shareholder Vote Postponed to September 7

|url = http://www.brightwire.com/news/228423-xstrata-glencore-merger-shareholder-vote-postponed-to-september-7

|publisher = BrightWire

|url-status = dead

|archive-url = https://archive.today/20130102045537/http://www.brightwire.com/news/228423-xstrata-glencore-merger-shareholder-vote-postponed-to-september-7

|archive-date = 2 January 2013}} After the merger with Glencore, the Xstrata CFO Trevor Reid announced that he would not continue to work as employee but as consultant. After 11 years of involvement, this marks a massive shift in the company's strategy and the group is entering a post-Reid era.[http://www.cfo-insight.com/human-capital-career/executive-change/xstrataglencore-have-to-get-on-without-cfo-trevor-reid/ Xstrata/Glencore Have to Get On Without CFO Trevor Reid] {{webarchive |url=https://web.archive.org/web/20130222082852/http://www.cfo-insight.com/human-capital-career/executive-change/xstrataglencore-have-to-get-on-without-cfo-trevor-reid/ |date=22 February 2013 }} CFO Insight Magazine. 12 December 2012. Retrieved 12-13-2012

The Xstrata name

The Xstrata name, which evokes the activities of mining and extraction, was created in 1999 by John Lloyd of the British corporate identity consultancy Lloyd Northover. Glencore has also announced that they will no longer use the 'Xstrata' brand and it will be phased out. Glencore Xstrata plc is now Glencore plc.{{cn|date=May 2024}}