Glencore, led by Gary Nagle, moves $30 billion asset base to Australia in restructure

Key Points

• Glencore shifts $30 billion in mining assets to Australia, doubling its local asset base to $65 billion, streamlining for potential mega-merger under CEO Gary Nagle. 
• Restructure consolidates coal, South African mines, enhancing appeal amid ESG pressures; Australian markets favor coal assets more than London. 
• Move follows aborted Rio Tinto merger, includes $3.8 billion cash transfers; signals strategic consolidation amid global mining sector shake-up.

Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, has moved over $30 billion in global mining assets into its Australian subsidiary, Glencore Investment Pty Ltd, in a sweeping corporate restructure that positions the group for a potential mega-merger. 

The asset shift—disclosed in Australian filings—includes coal mines in Colombia, South Africa and Canada, the Mara copper project in Argentina, and ferroalloy operations near Johannesburg. The restructured entity now controls a portfolio worth over $65 billion, effectively doubling its asset base in Australia.

Merger-ready structure signals strategic intent

The move comes less than a year after Glencore shelved plans to spin off its coal division and eight months after an aborted merger approach to rival Rio Tinto. Analysts suggest the consolidation of so-called “unwanted” assets, like coal and South African mines, may make Glencore more attractive to potential partners. 

“None of their suitors want coal or South African exposure,” said Ben Cleary, portfolio manager at Tribeca Investment Partners. “This restructure looks like pre-merger housekeeping—Australian markets value coal more favorably than London.” The asset shuffle involved $3.8 billion in internal cash transfers and $614 million in intra-company share deals, streamlining Glencore’s sprawling global footprint under fewer legal entities.

Gary Nagle tightens control over core divisions

Glencore has made no formal announcement about pursuing a deal, but the restructure consolidates coal operations across NSW and Queensland with global peers under the same corporate banner. It also groups South African manganese, chrome, and vanadium mines, previously scattered across units. 

A spokesperson confirmed the strategy stemmed from the now-abandoned coal spin-off, accelerated by the Teck Resources coal asset acquisition. While the Mara copper project was temporarily placed in the Australian entity, it has since been shifted again for better alignment with Glencore’s LatAm strategy.

Mining giants eye simplified portfolios amid ESG pressure

As BHP and Rio Tinto pivot away from coal and South African assets due to ESG and operational risks, Glencore’s packaging of its less desirable units may serve as a defensive play—or the first move in a broader commodities consolidation wave.

Founded in the 1970s, Glencore has evolved into one of the world’s largest commodity firms, with operations in over 35 countries and a workforce exceeding 150,000. Under Gary Nagle’s leadership, the company reported a 6 percent increase in 2024 revenue to $230.94 billion, fueled by strong metals trading and marketing. 

In a separate move to modernize its energy footprint, Glencore committed R6 billion ($329 million) to upgrade its Cape Town refinery, operated by Astron Energy, to meet Euro 5 fuel standards by 2027.