Glencore is not interested in building iron-ore mines, but will consider buying one if the economics stack up, says CEO Ivan Glasenberg. The large mining and commodity trading company has written down its iron-ore investments and does not mention them unless asked. But when quizzed, Glasenberg was clear that the company, which favours mining and trading bulk commodities, had no interest in bringing undeveloped iron-ore assets into production. In fact, Glencore regarded its 50% plus one stake and management control of the Zanaga iron-ore project, with its 2.1-billion tonnes reserve with a 34% iron content, as an option on a high iron ore price and a saleable asset, said chief financial officer Steven Kalmin. "For us, it’s largely option value," Kalmin said. "At some point in a high iron-ore price, if someone offered us a nice price, for those we’re probably more of a seller than a developer," he said. Glasenberg reiterated a comment he made two years ago when asked the same question,...
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