Goldman Sachs Group

Goldman Sachs Group was the world’s most profitable investment bank in 2007. It acquired a 3.46% stake in GCM Resources plc in June 2008 (see Polo Resources) [Hemscott 10 June 2008] and just under 4% of Cambrian (qv) [Hemscott 11 February 2008].

Goldman Sachs was accused of having orchestrated the attempt by Russia’s steel conglomerate, Severstal, to take over Arcelor in 2006 [see: “Arcelor, Mittal and the usual hedge fund suspects”, FT 26 June 2006].

In 2008 it was the second largest shareholder (9.17%) in African Copper plc [Hemscott 24 January 2008]; as of July 2007 was the fourth biggest shareholder in Zambezi Resources [annual report, Zambezi Resources 2007], and has a small (3.03%) stake in LonZim PLC (qv) [Hemscott 12 February 2008].

In May 2008, Goldman Sachs, joined by UBS and Morgan Stanley made a rights issue worth 9 billon Rand (approximately US$ 1.2 billion) on behalf of AngloGold Ashanti. [Mining Weekly, 7 May 2008].

The same month, Goldman Sachs, along with Morgan Stanley and JP Morgan, co-ordinated the London listing of central Europe coal giant, New World Resources NV (see RPG Industries SE). Goldman Sachs Securities (Nominees) held 5.30% of Mariana Resources Ltd (see CS) [Hemscott 12 February 2008]. Its International Equity NonTreaty Custodians held just under 6% of Crew Minerals (now Intex) in mid-2007 [Philippines Research 2007].

In early February 2009, with Merrill Lynch & Co. Goldman Sachs became joint lead manager, book runner and underwriter for an Aus$ 750 million share sale, on behalf of Newcrest, Australia’s largest gold miner. JB Were Pty and UBS AG also assisted with the sale [Bloomberg, 2 February 2009].

Goldman Sachs Canada Inc, along with CIBC World Markets as co-lead managers and joint book runners; and including National Bank Financial along with UBS Securities Canada Inc., Merrill Lynch Canada Inc., RBC Dominion Securities Inc., Raymond James Ltd, Salman Partners Inc and Canaccord Capital Corp as co-managers, launched a US$ 90 million share offering for Pan American Silver in February 2009 [Marketwire 5 February 2009].

Two months later Goldman Sachs and CIBC World Markets acted as joint bookrunners for a CDn$ 88 million share issue on behalf of Equinox Minerals, to be used to strengthen the company’s position in the important Lumwana copper project in Zambia [MJ 10 April 2009].

In July 2011 the bank was a 3.1% shareholder in the Zimbabwe mineral exploration company, African Consoidated Resources plc.

In January 2011, the US-based Rainforest Action Network (RAN) published a survey of the biggest ten US banks (by market share) and the extent to which they are currently underwriting new coal power plant capacity in the country. Goldman Sachs was said to have provided no less than US$5,473,000,000 in such new funding, comprising 39% of its total market issues [The Principle Matter: Banks, Climate & The Carbon Principles, RAN, January 2011].

This set Goldman Sachs at the top of this pile of egregious banks, followed by Credit Suisse (CS), Barclays Capital (Barclays), UBS AG, and JP Morgan Chase - all of which provided more than 25% of their aggregate funds to underwrite the coal industry.

On the eve of the 2011 climate change conference (Conference of Parties) held in Durban, South Africa,four organisations (urgewald of Germany, BankTrack, and South Africa groups Earthlife Africa and groundWork)identified the Bank as the 12th heaviest global financier of coal fired electricity and coal mining in the period 2005-2011. According to their report, BNP Paribas had released 8,217 million euros of such funding [Bankrolling Climate Change, urgewald et al 2011].

In March 2012, Goldman Sachs was mandated to arrange a US$175 million finance package for the restart of EMED Mining Public Ltd's Rio Tinto copper mine in Spain. (Not to be confused with the Rio Tinto mining company which took its name from the same mine in the 1880s) [MJ 9 March 2012].