A story of nickel and dimes

[Jurriaan Bendien <bendien@xxxxxxxxxxxx>]

Remember how I reported that CEO Scott Hand of Inco Ltd. chief of the Goro
nickel mining project in New Caledonia,  thanked Jacques Chirac at a mining
conference in Kone for "the supportive attitude of your officials in
addressing French participation in providing financial support for the
project" (understandable given the falling nickel prices in recent years) ?

Well, I wanted to know more about Inco Ltd, its significance, who controls
it, who owns it. It is not as easy as it sounds, the site that has the
information I want, I cannot access from here. I used to teach an INCO class
at varsity (interdisciplinary course), but this is a different ballgame.

But anyway.

Inco, based in Toronto, is the 2nd largest producer of nickel metal
globally, supplying about 20% of the world's total nickel demand. Inco
employs over 10,000 people globally. Inco has sales offices in Canada, the
US, London, Dusseldorf, Hong Kong, Tokyo, Bangkok, Taiwan and Shanghai, and
serves every continent. Inco operates joint-venture nickel refining
operations in Japan, Korea, Taiwan, and China. PT Inco's company town
Sorowako in Indonesia houses 11,000 people.

So what's Inco doing in New Caledonia ?

The island of New Caledonia, the site of Inco's Goro nickel project,
contains nearly one-third of the world's accessible nickel resources.
I bet that's a jolly good reason why the French state would prefer to
keep New Caledonia, quite apart from good climate and
lovely hotels, all Francophone and everything.

But the French do not own or control Inco Ltd.

They own New Caledonia, but they don't own Inco Ltd.
Okay, so now who does own it, who controls it ? Who is
responsible for this gigantic organisation, if we are talkin' about the
individual and social responsibility which is supposed to flow from
private property  ?

Well, of the addresses of shareholders with voting rights, 62 % were in
Canada, 28% were in the USA and 10% were elsewhere. Of voting shares,
Canadian residents held 45% , USA residents held 54%, and others 1%.

Total institutional ownership of Inco Ltd is supposed to be about 55% or so.
So then there would be more companies and individuals holding shares.
I cannot yet get a full picture of the shareholdings however.

The top institutional holders (22.85%) seem to be:

MC Lean Budden Ltd  3.53%
I.G. Investment Management, Ltd 3.17%
Taunus Corporation 3.15%
TD Asset Management, Inc 3.11%
TAL Global Asset Management Inc. 2.83%
Barclays Bank Plc 2.14%
Bankmont Financial Corp. 1.49%
FMR Corporation (Fidelity Management & Research Corp) 1.32%
Mackenzie Financial Corporation 1.12%
Capital Growth Management L.P. 0.99%

The top mutual fund holders (5.37 %) are apparently:

Vanguard Precious Metals Fund 0.65%
Fidelity True North Fund 0.63%
Dynamic Power Canadian Growth Fund 0.59%
Altamira Equity Fund  0.57%
College Retirement Equities Fund-Stock Account 0.55%
Trimark Select Canadian Growth Fund 0.45%
Standard Life International Trust 0.43%
Scudder Large Company Value Fund 0.38%
Royal Canadian Equity Fund 0.38%
Price (T.Rowe) New Era Fund 0.36%

But that is only about 28% of the shareholdings. Some directors themselves
seem to have a significant shareholding, but like I say, I cannot get the
data just now. Well, never mind. But anyway, who is actually on the central
board of directors of Inco Ltd ? Here you go:

Glen A. Barton, Chairman and Chief Executive Officer, Caterpillar Inc.,
Angus A. Bruneau, O.C., Chairman, Fortis Inc.
Ronald C. Cambre, Retired Chairman and Chief Executive Officer Newmont
Mining Corporation, Denver
The Hon. Judith A. Erola, P. C ., Retired President, Pharmaceutical
Manufacturers Association of Canada, Ottawa
Scott M. Hand, Chairman and Chief Executive Officer, Inco Limited, Toronto
Chaviva M. Hosek, President and Chief Executive Officer, Canadian Institute
for Advanced Research, Toronto
Peter C. Jones, President and Chief Operating Officer, Inco Limited, Toronto
David P. O'Brien, Chairman, President and Chief Executive Officer, Encana
Corporation
John T. Mayberry, Former Chair of the Board and Chief Executive Officer,
Dofasco Inc., Hamilton, Ontario.
Roger Phillips, Former President and Chief Executive Officer, IPSCO Inc.,
Regina, Saskatchewan
James M. Stanford, Stanford Resource Management Inc., Calgary, Alberta,
Canada
Richard M. Thomson, O.C., Retired Chairman and Chief Executive Officer, The
Toronto-Dominion Bank.

I am not going to talk about the politics of Inco Ltd, the policies, the
financial details, the wealth, social and environmental impacts, health
impacts and so on, I am just looking simply at the structure of corporate
organisation as such, skimming the surface as it were, snapshot stuff.

So who owns it ? Who controls it ? Who manages it ? Who is accountable
here ? Beats me. It would take years to find out, probably, unless you knew
the key people and they were prepared to talk.

You get all these Marxists talkin' about the "Leninist theory of party
building", stuff like that, but now have a look at this, guys.

Cheers

Jurriaan