Yep, good call - but there were differences - starting of course from the point of accepting that X Strata and Glencore are effectively one and the same.
Xstrata had invested in the Windimurra project, and then acquired 100% of it in exchange for a 15% royalty - ie at that point no cash outlay.
It operated the mine for 3 years before shutting it down - and then proceeding to scrap it. It was reportedly one of the higher cost producers in their Vanadium inventory. So not unreasonable to shut it down - the rapid decision to scrap it was harsh - but clearly designed to send a signal to the vanadium market.
Xstrata were pilloried by both State and Federal Governments, as well as settling a costly legal dispute with Precious Metals, the former and now current owners of the project.
Xstrata/Glencore will probably not wish to face those issues again - with the main difference being that Xstrata had not just sunk $200M into the Vanadium project. They may shut Minara down if it remains at the upper end of cost per lb Nickel, and if Nickel remains low - but that will not happen immediately - they are playing the simple cycle of commodities and are clearly expecting a positive and further run out of Minara.
In 2000 PMA, due to low revenue from production and low
vanadium prices, was forced to sell its remaining 40% stake to Xstrata, in return for a 15% net royalty from Windimurra
production. In 2003, citing low global vanadium prices, Xstrata suspended the operation. By May 2004, Xstrata whom had two competing operations in South Africa had announced that it would not be reopening the operation and controversially proceeded to partially demolish the plant.
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