LONDON, March 21, 2026, 15:12 GMT
- Glencore closed out Friday at 520.10 pence, gaining 0.37%. About 232 million shares changed hands, pushing turnover on the LSE to nearly 699 million pounds.
- The shares didn’t budge, despite Glencore signaling its South African ferrochrome business might exit negotiations for cheaper electricity.
- Shares have climbed 27.9% so far this year, as stronger coal prices and ongoing chatter about a potential Rio Tinto deal continue to buoy sentiment.
Glencore shares wrapped the week at 520.10 pence, holding above 520 even after its South African ferrochrome operation threatened to walk away from rescue negotiations over power costs. The stock ticked up 0.37% on Friday’s close, per London Stock Exchange data.
This is landing right as Glencore pushes to slash costs, rejig its asset base, and shore up shareholder payouts. Last month, the miner kept its $2 billion return to shareholders on the table, even after annual profits dropped for a third year. Net debt, meanwhile, remains above Glencore’s $10 billion target.
Ferrochrome, the chrome-iron alloy critical for stainless steel, is at the heart of South Africa’s electricity price crunch. Eskom has dangled a 54% tariff cut—down to 0.62 rand per kilowatt hour, from the current 1.36 rand. Still, the plan isn’t final; regulators have the last word. For Glencore, it’s not the discount but the terms attached that have them balking.
“The terms and conditions as they stand, I’m not going to be able to sign,” Glencore Ferroalloys CEO Japie Fullard told a mining conference in Johannesburg. Lay-off plans are on hold until March 31, but Fullard said up to 1,500 jobs remain on the line if a deal isn’t struck. Reuters
Samancor Chrome—the other producer granted the discounted tariff—has begun layoffs. The company acknowledges the lower tariff does ease electricity bills, but warns the conditions attached could still jeopardize the sector’s future.
But it’s not just the usual headlines moving the stock. According to LSE data, Glencore has jumped 27.9% so far this year. By March 13, Reuters flagged that both coal prices and Glencore shares climbed 26% since Jan. 7, reigniting questions about its valuation after merger negotiations with Rio Tinto broke down.
Glencore’s 2025 results, out Feb. 18, showed adjusted EBITDA slipping 6% to $13.51 billion, but that still beat analyst expectations. “The underlying momentum in H2 was clear,” Chief Executive Gary Nagle said. He also noted that consolidation “can be good for our shareholders.” Reuters
Back in February, Rio pulled out of the proposed deal after talks broke down over valuation and control issues. “Ultimately we formed the view that we couldn’t stand up a value case,” said Rio CEO Simon Trott. UK takeover regulations now block another approach for six months. Reuters
Some investors aren’t convinced another giant takeover is the best path for Glencore. They see more upside if the company breaks itself up. Iain Pyle at Aberdeen flagged the option last month, suggesting Glencore could “sell off assets individually.” George Cheveley at Ninety One echoed that idea, saying the company might “tidy up their portfolio and release value.” Reuters
Still, the picture could get ugly. Power bills for South Africa’s smelters have jumped by a factor of ten since 2008; out of 66, just 11 remain up and running. If negotiations break down, Glencore could be looking at even sharper reductions in a division it already describes as loss-making.
Glencore shares climbed even as the broader London market slumped, with the FTSE 100 shedding 1.4% on Friday. Fresh fears over inflation, stoked by conflict in the Middle East and surging oil prices, weighed heavily. The next hurdle for the stock lands on March 31—if Glencore hasn’t secured a power deal by then, the delayed South African lay-off process is scheduled to pick up again.
