Glencore Xstrata: Lower exposure to iron ore ‘a boon’

Glencore Xstrata billionaire chief executive Ivan Glasenberg believes the company’s reduced risk from falling iron ore prices sets it apart from rivals BHP Billiton, Rio Tinto and Vale. “We are not heavily exposed to iron ore except on the trading side and, therefore, we believe we have an opportunity against our peers there,” he said yesterday at the annual general meeting in Zug, Switzerland. Glencore’s shares of iron ore production pales in comparison with BHP Billiton, Rio and Vale, which controlled about 60 percent of seaborne supply in the $170 billion (R2 trillion) trade last year. Thermal coal for power stations and copper are the biggest contributors to Glencore earnings. Glencore shares gained 1.17 percent to close at R57.80 yesterday. – Bloomberg