History
The company was founded in 1926 in Switzerland as Südelektra, an infrastructure and electricity projects concern operating in Latin America.[8]
In 1990, Marc Rich + Co AG became its majority shareholder. In the 1990s it diversified into mining and disposed of its non-core businesses.[8]
Mick Davis was appointed CEO of Xstrata in 2001, and it was first listed on the London Stock Exchange in 2002 at which time it acquired Glencore's coal assets in Australia and South Africa.[8] Glencore controlled 40% of Xstrata stock in 2001.
In 2003, Xstrata doubled in size with the A$2.9 billion takeover of Australian copper, zinc and lead miner MIM Holdings.[9] However, it failed in a 2005 bid for another Australian miner, WMC Resources, which was captured by BHP, the world's biggest mining company.[10]
In 2004, Xstrata closed its recently purchased Windimurra Vanadium plant in Western Australia which had the effect of increasing Vanadium prices received for Xstrata's other Vanadium mines around the world. Many hundreds of people were put out of work.[11]
In August 2005, Xstrata purchased a 19.9% stake in Falconbridge Nickel Mines, a diversified Canadian mining company producing copper, nickel, aluminum, lead and zinc. Following a contested take-over battle with Inco Limited, Xstrata acquired the remaining 80.1% of Falconbridge in August 2006.[12]
In 2006, The Northern Territory and Australian Governments approved the expansion of the McArthur River zinc mine, near the popular fishing destination of Borrooloola. The expansion involves diversion of the river to a new 5.5 km channel, to allow construction of a massive open-cut pit in the existing river.[13] On behalf of the traditional owners of the region – the Yanyuwa, Marra, Garrawa and Gurdanji peoples – the Northern Land Council launched a legal challenge to the Northern Territory Government's decision to approve the mining of and diversion of the McArthur River. On 1 May 2007, The Northern Territory Supreme Court ruled in favour of the Northern Land Council to stop the expansion. On 3 May 2007, the Northern Territory government rushed through retrospective legislation to overrule the court decision and allow the open-cut mine to proceed.[14]
On 28 May 2012 violent repression of local residents by the police in the province of Espinar, Cuzco, Peru, caused the deaths of two civilians. The inhabitants protested against the pollution of the water sources caused by Xstrata's mining activities.[15] The government has decreed a State of Emergency and suspended civil liberties guaranteed in the Constitution.
On 2 May 2013 Xstrata was acquired by Glencore,[6] and retired Davis and his team.[16][17]
Xstrata Mexico, created in 2011 as a special-purpose vehicle to develop iron ore mining in Mexico, continues to use the Xstrata name, though it halted its mining activities in Mexico in 2015, and in 2016 moved into agribusiness.[7]
