Shares of Glencore, the Swiss-based commodity giant, began trading on the Australian Securities Exchange (ASX) on Thursday, marking a significant move to strengthen the ASX’s position as a global hub for mining stocks. The launch adds a secondary listing for Glencore, which is already publicly traded in London and Johannesburg.
Glencore chose the Australian market to tap into a resource-savvy investor base known for its strong understanding of the mining sector. The company issued CHESS Depositary Interests (CDIs), a listing instrument that facilitates trading of foreign securities on the ASX. This approach is expected to increase liquidity for Glencore’s Australian shares over time and could ultimately position the company alongside Australia’s largest miners, such as BHP, Rio Tinto, Fortescue, and Newmont.
The stock opened at A$11.20, quickly rising to A$11.38 before settling near A$11.22 by midday trading in Sydney. Glencore’s primary listing in London has seen its shares gain more than 43% this year, though some analysts, including those from JPMorgan, note that the company continues to trade at a discount relative to peers like Rio Tinto and BHP. JPMorgan also forecasts that increased trading volume through the ASX listing could help Glencore eventually join the ASX 200 benchmark index within the next three years.
Glencore CEO Gary Nagle highlighted the company’s confidence in attracting Australian investors, describing them as “smart investors” who understand mining. Nagle pointed to recent meetings with institutional shareholders in Australia, including major pension funds, some of which have traditionally avoided coal investments due to environmental and social governance concerns. He indicated that Glencore’s strategy to gradually phase down its Australian coal assets aligns with these evolving investor policies.
“With the recent energy crisis stemming from geopolitical tensions, including the conflict in the Middle East, people’s perspectives on energy and resources have shifted,” Nagle said, suggesting increased acceptance of Glencore’s approach.
Glencore is a major employer in Australia, with approximately 16,000 staff engaged in coal, zinc, copper, and nickel operations, including mines and smelters. The company’s diversified portfolio offers Australian investors exposure to copper, a key commodity less correlated to iron ore, which dominates the country’s largest mining companies. Additionally, Glencore operates a substantial commodities trading division, which Nagle described as a distinctive aspect compared to rivals.
Earlier this year, Glencore ended talks with Anglo-Australian mining giant Rio Tinto over a potential merger, but Nagle emphasized that the ASX listing is not a precursor to further acquisitions or consolidation moves at this time. “We have no shopping list,” he said.
The ASX currently hosts more than 850 mining and resource companies, reinforcing its reputation as a leading exchange for the sector. Anthony Attia, who assumed the role of ASX CEO this month, underscored the exchange’s goal of promoting the strength and opportunities within the metals and mining industry amid a globally integrated capital market.