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Diversified mining and marketing company Glencore has delivered another strong operational and financial performance for the first half of the year.

The assets of the London- and Johannesburg Stock Exchange- (JSE-) listed Glencore performed in line with market guidance, which alongside substantially higher period-over-period average prices for its core commodities and a favourable marketing backdrop, underpinned a material increase in earnings.

The first half of this year was characterised by the significant repricing of energy and, closely related, markets and risks, following escalation of the Middle East conflict.

"What began the year as a relatively well-supplied energy complex, quickly shifted towards a focus on security of supply and access to physical commodities. Constraints across oil, refined products, LNG and freight capacity, drove heightened volatility across global energy and other markets," Glencore CEO Gary Nagle reported.

Against that backdrop, group adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 86% to $10.1-billion, while net income attributable to equity holders increased by more than $5-billion period on period to $4.4-billion.

Marketing adjusted Ebit was $3.3-billion, up 142% compared with the prior period, which Nagle said demonstrated the resilience and responsiveness of the business amid heightened geopolitical uncertainty and market volatility.

"This environment continues to highlight the value of the group's marketing, logistics and risk management capabilities, enabling us to efficiently source, transport and deliver essential energy and metals products to customers around the world," Nagle pointed out.

Glencore's industrial segment contributed adjusted Ebitda of $6.5-billion, up 72% compared with the prior period, reflecting the significantly stronger commodity price environment and solid operational performance across the portfolio.

These benefits were partially offset by a generally weaker dollar and higher operating costs, exacerbated by the Middle East conflict supply-chain disruptions, materially impacting the availability and pricing of key inputs and consumables, such as diesel, sulphur and sulphuric acid, beyond normal inflationary considerations.

"In terms of asset development, we remain well positioned to reach copper production volumes of one-million tonnes annualised by the end of 2028 and our 1.6-million target by 2035.

"We're making good progress across the various projects presented at our December 2025 Capital Markets Day. Some, including the Alumbrera restart, are running ahead of schedule, with its first production now expected in H2 2027 compared to original guidance of H1 2028," Nagle added in a media release to Mining Weekly.

Adjusted Ebitda mining margins were 52% for copper, 38% for steelmaking coal and 19% for energy coal. Based on current commodity prices and an expected uplift in second-half volumes, particularly for steelmaking coal, Glencore anticipates continued strong cash generation through the remainder of 2026. On that basis, and assuming no significant change, a full-year 2026 illustrative adjusted Ebitda of around $19.7-billion has been calculated.

Glencore has also announced that it intends to apply for a secondary listing on the ASX and is targeting admission in October 2026.

Questioned about Glencore's JSE listing's position within the context of an ASX listing, Nagle said: "The JSE listing has been a standout performer for us …South Africa's been the trailblazer for us and has done such a good job. We've got 8% of our of our register there, which is the equivalent of ten-billion Australian dollars.

"If we can replicate that in Australia, it would be a great success. We believe tha...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Supply pressure stemming from the depletion of iron-ore mines built earlier this century, such as those in Australia, is set to underpin the iron-ore market and prices over the coming decade, a Rio Tinto executive said on Wednesday.

Rio expects to invest more than $13-billion on new mines, plant and equipment in the Pilbara region from 2025 to 2027 while estimating that 800-million tonnes needs to be added globally across the next decade to maintain supply.

Only 300-million tonnes has been committed.

"It feels like every year, the demise of iron-ore is very much being exaggerated," Matthew Holcz, Rio's iron-ore CE, told a lunch event at the Melbourne Mining Club.

"While I think the demand story has been reasonably well understood, I really think it's been on the supply side, so disruptions have been underestimated," he said, pointing to annual cyclones that strike Western Australia's Pilbara coast from November to April.

"I think the rate of depletion is very much underestimated," Holcz added.

"If we look at when the industry really boomed, 2005, 2010, 2015, a lot of those assets are now 15, 20 years old, and the scale of the iron-ore industry ... has increased."

Investment in new supply is only a fraction of that seen at the start of last decade, Holcz said.

"Marginal costs are a lot higher ... so we think there's good price support around the levels that we're enjoying in recent years."

China's demand is expected to be stable until 2030 before declining slightly, but the Global South will bolster demand, particularly India, which Rio expects to be a net iron-ore importer around 2035.

CHANGE IN LEVERAGE

On China's State buyer, now more assertive in price talks with suppliers, Holcz said tension between buyers and sellers always prevailed but Rio was focused on long term ties and "win-win" opportunities.

"The supply-demand balance has shifted," he told media in remarks on the sidelines. "You've got a market that is much more in balance, and certainly that's shifted some of the leverage."

Referring to union matters in the Pilbara, where workers are set to strike this weekend at BHP's Port Hedland operations, Holcz favoured a "direct relationship" with workers that he said has historically led to better outcomes.

Future capital spending decisions would hinge on competition, industrial relations and tax provisions elsewhere, areas in which Australia is falling behind.

Rio Tinto has no major exposure to iron-ore trader Radiant World, Holcz added.

Trading houses Vitol Group and Cargill have stopped trading with Radiant World over concerns that invoices provided to its banks may not have been valid, Bloomberg News said last week, which Radiant world denies.

"From a Rio Tinto perspective, there isn't any exposure there that we're concerned about," Holcz said.

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The results of a study on the modernisation of South African mining indicate that there is considerable room to increase innovation participation and intensity across the firms surveyed.

The finding was communicated at South Africa's Mining Modernisation Showcase, where a strong partnership was visible between Minerals Council South Africa, the Research Institute for Innovation and Sustainability (RIIS), the Centre for Science, Technology and Innovation Indicators' specialised research unit within South Africa's Human Sciences Research Council (HSRC-CeSTII), PwC Smart Mining, the Department of Science, Technology and Innovation, and the National Advisory Council on Innovation. (Also watch attached Creamer Media video.)

At the event, the modernisation of South Africa's mining sector was described as being "an urgent strategic priority for the South African economy" amid South Africa ending up tenth in a ten-country global benchmarking exercise to understand the best practices being undertaken by other mining jurisdictions across the globe and see what lessons South Africa could implement from them.

Modernisation is about building a more efficient and resilient and competitive South African mining industry that can thrive in the future.

Dr Kgabo H Ramoroka, the senior research specialist of the HSRC-CeSTII shared findings on research, development, and innovation (RDI) activities within the South African mining and mining services sector from data between 2021 and 2023.

The RDI Survey Report, prepared jointly by HSRC-CeSTII and RIIS, established the extent of RDI activity in the mining sector, where it is concentrated, how firms engage in RDI activities to pursue modernisation, what capabilities exist at firm level and across the sector, and the possible opportunities for advancing modernisation.

Factors hindering the ability of the South Africa mining industry to be globally competitive in the mining space include declining ore grades, aging infrastructure, rising production costs, lack of skills, and the slow adoption of technology.

The core work of HSRC-CeSTII is collecting R&D data and when modernisation became a topical issue, it found itself sitting around the same table with RIIS and the Minerals Council amid South Africa finding itself unable to answer crucial questions despite mining being a cornerstone of its economy as a significant contributor to employment and exports.

"We selected 180 firms that were likely to be active in research, development, and innovation activities," Ramoroka reported at the event covered by Mining Weekly.

The study embraced a two-phase survey approach and involved firms that form part of the database of the Minerals Council as well as enterprises that had already participated in RDI surveys and business innovation surveys.

The first phase takes in 180 profiled mining and mining services firms across the mining value chain and the second phase only 90 firms out of the 180 firms that reported being actively RDI engaged.

"This approach has enabled us to generate a robust picture of firm innovation behaviour and capabilities within the industry," Ramoroka pointed out.

The survey of mining companies and mining services providers delivered broader insight across the value chain.

Commodity representation was from coal, platinum group minerals, gold, diamonds, iron-ore, manganese, copper, and other industrial minerals.

"But we didn't end there because from the start, we were curious about what modernisation really means, so we went into the field and also asked companies to provide us with their understanding of modernisation," Ramoroka explained.

Five major themes emerged. First was safety enhancement, second the increased adoption of automation and advanced technol...

Rio Tinto signals no rush to revive Glencore deal as standstill ends

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

A freeze on Rio Tinto approaching Glencore for a takeover expires this week, but people who have been briefed by top executives don't expect any fresh tie-up talks for now as CEO Simon Trott focuses on cost cuts and asset sales.

Trott launched a simplification strategy to collapse Rio Tinto into three core businesses and concentrate on its most profitable assets after he took the top job at the world's second-biggest listed miner a year ago.

But within months, he was running the numbers on the prospect of a $200 -billion megamerger that would join Glencore's marketing and copper assets with Rio Tinto's operational expertise to maximise its copper potential.

Ultimately, Trott found no value case, and the miner walked away on February 5, setting in train a six-month standstill under UK takeover rules which expires on Tuesday.

"The company got a pretty clear message back when talks were on, that they shouldn't go there. If Simon Trott started up talks again, then from a corporate governance perspective, the share price would take a hit," said Michael Bell, chief investment officer of Solaris Investment Management in Brisbane, which holds Rio shares.

Trott has reassured Australian investors that Rio Tinto has no reason to revisit talks with Glencore, three people said.

Rio Tinto declined to comment.

"The changes that Rio Tinto has been making in the past few years with aluminium, lithium and copper are what people want to see for future growth, not a return to coal," Bell added. Glencore is among the world's top five coal exporters.

Surging coal prices earlier this year had raised Glencore CEO Gary Nagle's hopes that Rio Tinto may be open to another look at creating the world's biggest mining company, three investors said in March.

"The ball is in Glencore's court. Any offer of value would have to be vastly different to the offer of value that was discussed and rebuffed six months ago," said Glyn Lawcock, an analyst with Barrenjoey.

Glencore declined to comment.

The value equation has shifted in Glencore's favour, with its shares having jumped 33% this year, against an 18% rise in Rio Tinto's UK-listed shares.

The rally in Glencore's share price is "definitely something that reduces the chances that Rio will come back," said analyst Jon Mills at Morningstar, adding it would dilute Rio's shareholders and undermine Trott's call to walk away.

Trott's immediate priority and first test is liberating $10-billion-plus through divestments, targeting half of that by year end, while expanding trading and pursuing copper opportunities.

Rio Tinto "should be looking to partner and bolt-on," he told analysts on a results call last week.

"The strategic challenge that Rio's approach to Glencore highlighted – a lack of copper growth options post 2030 – is one that is not easily solved other than via M&A," Barclays analysts said in a note.

GLENCORE WOOS AUSTRALIAN INVESTORS Glencore meanwhile has focused on proving up its copper assets, while also raising its visibility Down Under. After it reports its half-year results on Wednesday it will host calls with Australian institutional investors, including non-shareholders.

The investor outreach comes after the company underestimated the impact of Australian opposition to a potential merger with Rio Tinto, due to issues like its coal exposure, uncertainties around the value of its marketing business and historic corporate governance issues.

The reception to a potential marriage was much warmer in the UK, where BlackRock, a top shareholder in both firms, has backed consolidation among large miners.

As Glencore considers its options, a Sydney listing remains one avenue, alongside seeking other partners.

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This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

Can you use AI to find new markets for platinum group metals (PGMs)?

"The simple answer is yes," was the reply of Valterra Platinum CEO Craig Miller to Mining Weekly during the latest media roundtable of this PGMs mining and marketing company. (Also watch attached Creamer Media video.)

"The work that we're doing in the market development space through the partnerships that we have, the investments that we've been making in some companies, is exactly that – applying technology to utilise and get to solutions much quicker than you would have done historically, by utilising AI, and that's particularly around how you mix various metals and come up with an alloy, which can then be used in new applications.

"We're already starting to see some of that coming through. It's still relatively small amounts of ounces, but the potential is very much there, and we're quite excited about that."

In addition, is the use of PGMs in the AI space. "We think that, conservatively, there's probably 200 000 oz to 300 000 oz of PGMs used today in AI-related developments, and we can see that growing sort of four- or five-fold over the next five to eight years."

Valterra last week presented a set of stunning half-year financial results, which included a headline earnings surge of 1 633%.

Mining Weekly: You expressed considerable bullishness about future demand growth. Share some of that bullishness with us and the reasons for your confidence.

Miller: About two-thirds of PGMs go into the automotive sector, in internal combustion engine vehicles as well as hybrid vehicles. We continue to see relatively good demand from our customers in the automotive sector, but we also recognise that the share of battery electric vehicles will continue to grow. As a result of that, we need to create new demand segments, particularly in industrial applications, also in jewellery, and also in other forms of mobility through fuel cell electric vehicles.

As a company, we've entered into several partnerships – with Sibanye-Stillwater here in South Africa, with Johnson Matthey, with Umicore in Germany, and with Pujing Chemicals in China – to advance the opportunities that we see in the industrial space for PGMs. It's on the back of what we've seen from some of the early stages of those partnerships – as well as opportunities to substitute gold for platinum in both the electronics area as well as in jewellery – that you can see additional demand segments materialising, which gives us the confidence of that underlying support for the long-term outlook for PGMs.

SANDSLOOT PROJECT

With its eye also on supply, Valterra is developing a high-grade underground PGM project beneath the Sandsloot openpit at its Mogalakwena PGM flagship mine.

This project aims to offset declining surface ore grades, with potential full production expected after 2030, pending a 2027 investment decision.

Unlike other Bushveld Complex reefs, the reef height is between 40 m and 120 m, with a 45º dip on average, characteristics well suited for bulk, underground mechanised mining. The 4 g/t to 6 g/t is pointing to a substantial potential value-rather-than-volume-based growth uplift that facilitates the use of existing concentrator and tailings facilities, an advantage that is set to save billions of rands in upfront capital expenditure and operating expenditure.

Mining Weekly: You report that trial mining is scheduled to take place at the emerging new Sandsloot underground mine before the end of this year ahead of a final investment decision. Tell us about that?

Miller: Given the significant quality and scale of the Mogalakwena operation, we saw the potential of going underground at Mogalakwena and specifically the Sandsloot area, which is different to where the openpit is. Thr...