Miner Glencore to give $2bn to shareholders despite profit slump

"Glencore is to give $2bn (1.47bn) to shareholders after a turbulent year in which profits slumped and talks collapsed over a blockbuster $260bn merger with the fellow mining company Rio Tinto. The FTSE 100 company announced the payout on Wednesday despite reporting that annual profits slipped 6% on the previous year to $13.5bn. It comes weeks after talks over what would have been the largest deal in mining history collapsed, leaving the Swiss-headquartered commodities company"

"Copper has become central to Glencore's future, with the metal increasingly in demand as the world builds out electric vehicles, renewable energy infrastructure and power grids. The company is targeting production of more than 1m tonnes of copper a year by the end of 2028, rising to 1.6m tonnes by 2035, which would make it one of the world's largest producers."

Glencore will distribute $2bn to shareholders after annual profits fell 6% to $13.5bn. Talks for a $260bn merger with Rio Tinto collapsed, prompting continued focus on standalone growth. Rising metals prices and increased copper output in the second half of the year were outweighed by steep falls in coal and energy commodity prices. The company operates in more than 30 countries and employs about 140,000 people. Merger approaches with Rio have recurred for two decades and recent talks again failed despite sector consolidation. Management cited momentum for a copper-led growth strategy targeting over 1m tonnes by 2028 and 1.6m by 2035.

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