Glencore to boost share buyback programme

JOhaNNesburg: Glencore Plc will increase its share buyback program by as much as US$1bil, adding to a growing number of moves by the world’s biggest miners this year to return more money to investors.

The announcement comes less than a week after No. 2 miner Rio Tinto Group announced a US$3.2bil share buyback following an asset-sale spree.

BHP Billiton Ltd in August paid out a record dividend and pledged to hand shareholders most of the US$11bil reaped from selling its US shale assets.

Glencore chief executive officer Ivan Glasenberg said in August that the world’s biggest commodity trader was focusing on cutting debt and returning money to shareholders.

The serial dealmaker noted there was little of interest for the Swiss miner and trader on the acquisition front.

Glencore announced its original US$1bil share buyback in July.

This came after the company’s shares came under pressure when it was hit by a US Department of Justice probe.

As of Monday, it had chased US$939mil shares.

The buyback programme repur- will be extended to Feb 20, the company said in a statement.

The US probe extended a tough year for Glencore, mostly due to challenges linked to its business in the Democratic Republic of Congo, where it operates giant copper and cobalt mines.

Even after the initial buyback and a record-first half profit, Glencore’s shares have underperformed rivals this year.

The stock has dropped 15% in London, compared with a 9.8% gain by BHP and Rio’s 0.8% decline.

Anglo American Plc has climbed 12%. — Bloomberg