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Thursday, 12 May 2016

Commodity market needs to learn from past over investment

Glencore CEO Ivan Glasenberg said that the commodities industry needs to learn from past over-investment after a USD 1 tn spending spree cause the world to be awash with metals. "Accept that volume growth cannot be an end in itself,” according to Glencore’s slides from the Bank of America Merrill Lynch mining conference in Miami. Meanwhile, Vale SA, the world’s biggest iron-ore producer, said on Tuesday it would look into selling USD 10 bn of its best assets to reduce the debt it accumulated during the boom. But it’s not just the miners, writes Bloomberg, with Royal Dutch Shell Plc, ConocoPhillips, and other oil bigwigs stepping away from hefty licenses in the Arctic worth over USD 2.5 bn as crude oil prices have plummeted to less than half their June 2014 levels.

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