The $US500 million ($A485.4 million) of synergies spruiked as part of the merger between Glencore International and Xstrata were purely operational, according to Glasenberg.

“We believe we run our business differently to how Xstrata did in the past,” he told a teleconference on Friday.

“We don’t have these so-called business units with their own head offices around the world.”

Glasenberg said he liked the idea of assets being run from the top.

“We rather prefer the assets to be run at asset level and report into head office and head office will create the support functions,” he said.

“We don’t need these business unit corporate offices around the world.”

Glasenberg said the new entity should be able to eliminate a lot of bureaucracy.

“We should be able to reduce a large number of staff in these business unit corporate offices in these areas,” he said.

As well as the company’s head office in Baar, it will have offices in Sydney, Johannesburg, Toronto, Stamford and Singapore.

He said business units would share offices in some cities.

Xstrata already announced last month that it was closing its Brisbane coal office, to be integrated into the Sydney office, resulting in the loss of around 100 jobs.

Xstrata Coal boss Peter Freyberg has moved to the enlarged group and remains the leader of the coal division.

Brisbane-based Xstrata Copper CEO Charlie Sartain has left the company.

Xstrata Nickel Australasia was based in Perth.

Perth-based Minara Resources runs Glencore’s Murrin Murrin operation in Western Australia and managing director Peter Johnston will become nickel boss of the enlarged entity.

Minara chairman Peter Coates has been appointed as asset integration advisor to help with the transition.

Glencore Xstrata enjoyed a strong first session of trading on Friday with shares up 3.9% in London and 6.9% in Hong Kong