Glencore: dirty business provides an embarrassment of riches

Glencore has just agreed to pay $180mn to the Democratic Republic of Congo, bringing the costs of settling corruption allegations to $1.66bn. Such moves should hopefully distance the big commodities group from its shady past. Its current embarrassment is one of polluting riches rather than dubious business practices.

Having resisted an activist investor's pressure to spin off its thermal coal assets, the miner now benefits from their performance. But coal's success overshadows the prospects for Glencore's other metals — energy-transition friendly stuff such as copper, zinc and nickel. That may explain its valuation discount to big peers.

Glencore's coal seam is clear to see. First-half results at the division increased from $912mn last year to $8.9bn in 2022. Coal profits have driven a stock rally.

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