Glencore Becomes Material Atlas Iron Shareholder -- Update
May 09 2016 - 3:17AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--Glencore PLC (GLEN.LN) said it has gained a new source
of iron ore for its marketing business as it becomes a substantial
shareholder in Australian miner Atlas Iron Ltd. (AGO.AU).
Last year, Glencore bought some of Atlas Iron's debt, a portion
of which has now been converted to shares under a restructure of
the Australian company. Consequently, Glencore-controlled Maru Sky
Ltd. holds an 8.5% stake in the company, according to a regulatory
filing Monday.
Atlas Iron has been struggling to stay afloat amid a sharp
downturn in world iron-ore markets. The company was worth nearly 4
billion Australian dollars (US$3.0 billion) as recently as 2011 but
has been losing money rapidly as iron-ore prices fell to a
decade-low, underpinned by a swelling global glut of the
steelmaking ingredient.
Glencore said it has secured marketing rights for a portion of
Atlas Iron's exports, which are forecast to total up to 15 million
metric tons in the year through June. "Glencore is a significant
global marketer of iron ore, though we do not produce it
ourselves," Glencore said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
May 09, 2016 03:02 ET (07:02 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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