Glencore plc · LSE:GLEN
Glencore — Corporate Update (November 2013)
26 slides from Glencore's corporate update, November 2013
Slide 1: Sell-side analyst visit South Africa, November 2013
Sell-side analyst visit South Africa, November 2013
Slide 2: Forward looking statements
This presentation has been prepared by Glencore Xstrata plc ("Glencore"). Forward looking statements This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. Such statements are qualified in their entirety by the inherent risks
Slide 3: Business Overview
Business Overview
Slide 4: Our footprint in Africa
Our footprint in Africa • South Africa: Coal, Ferrochrome, Vanadium, PGMs, Logistics (Access) • Zambia and DRC: Copper, Cobalt • Burkina Faso and Namibia: Zinc • Equatorial Guinea, Chad and Cameroon: Oil • Tanzania: Nickel project • Mauritania and Republic of Congo: Iron Ore (early stage projects) 4
Slide 5: South Africa Coal highlights
South Africa Coal highlights Largest coal exporter in South Africa • Extensive portfolio of multi-quality coals comprising: • Four mining complexes producing 47.3Mtpa ROM • Three mid-tier operations producing 20.7Mtpa ROM • Pro-forma saleable production of 49Mtpa in 2012 • Strong existing FOB cash m
Slide 6: Our footprint in South Africa
Our footprint in South Africa 6
Slide 7: From humble beginnings – Glencore's acquisition trail
From humble beginnings – Glencore’s acquisition trail From 2005 an aggressive acquisition strategy was pursued, which commenced with the acquisition of the Graspan Colliery, building up to the 2013 finalisation of the Xstrata merger. Umcebo: Middelkraal Kleinfontein Metorex: Klippan Umsimbithi Townl
Slide 8: Production overview – Glencore Coal South Africa
Production overview – Glencore Coal South Africa Product Annual Production 2012 (Managed Tonnes) ROM 68 Mt Saleable 49 Mt Coal stockpile at Richards Bay Coal Terminal (RBCT) A conveyor belt structure at Goedgevonden Complex 8
Slide 9: Mining Complex – Goedgevonden
Mining Complex – Goedgevonden Goedgevonden Complex • Glencore Effective Ownership: 74% • Production rate: 11.9Mtpa ROM; 8.0Mtpa Saleable • Thermal: 44% Export; 56% Domestic Complex Status • Life of Mine: 24 years • Multi-seam mining of 2, 4 and 5 seams • Employment to 630 permanent staff & 290 contr
Slide 10: Mining Complex – Optimum
Mining Complex – Optimum Optimum Complex • Glencore Effective Ownership: 67.6% • Production capacity: 14.6Mtpa ROM; 11.0Mtpa Saleable • Thermal: 50 % Export; 50 % Domestic • Large open cut dragline mining (7 operating Draglines) • 8 underground sections Complex Status • Life of Mine: 17 years • Pote
Slide 11: Mining Complex – iMpunzi
Mining Complex – iMpunzi iMpunzi Complex • Glencore Effective Ownership: 79.8% • Production capacity: 10.3Mtpa ROM; 6.3Mtpa Saleable • Thermal: 72% Export; 28% Domestic North Pit Complex Status • Life of Mine: 22 years • Operational production of Opencast East commenced in mid 2010 • Plant expansion
Slide 12: Mining Complex – Tweefontein
Mining Complex – Tweefontein Tweefontein Complex • Glencore Effective Ownership: 79.8% • Production capacity: 10.5Mtpa ROM; 7.0Mtpa Saleable • Thermal: 75% Export; 25% Domestic • Underground, Opencast and Highwall mining Complex Status • Life of Mine: 23 years • Tweefontein Optimization Project to b
Slide 13: Mid-Tier Operations – Middelburg Complex
Mid-Tier Operations – Middelburg Complex Middelburg Complex • Glencore Effective Ownership: 49.99% • Production capacity: 8.6Mtpa ROM; 6.5Mtpa Saleable • Thermal: 50% Export; 50% Domestic Complex Status • Life of Mine: 7 years • Current Operations Graspan and Townlands • Life extension through Steel
Slide 14: Mid-Tier Operations – Umcebo Complex
Mid-Tier Operations – Umcebo Complex Umcebo Complex • Glencore Effective Ownership: 43.66% • Production capacity: 8.4 Mtpa ROM; 7.0Mtpa Saleable • Thermal: 10% Export; 90% Domestic Complex Status • Life of Mine: 3 years, excluding Wonderfontein • Current operations : Middelkraal, Kleinfontein & Klip
Slide 15: Mid-Tier Operations – Koornfontein Complex
Mid-Tier Operations – Koornfontein Complex Koornfontein Complex • Glencore Effective Ownership: 67.6% • Production capacity: 3.7Mtpa ROM; 2.8Mtpa Saleable • Thermal: 80% Export; 20% Domestic Complex Status • Life of Mine: 24 years • Current operations: Gloria & Blinkpan • Projects: Filter press & Br
Slide 16: Major Projects – South Africa (Coal)
Major Projects – South Africa (Coal) Estimated Life of Mine Project Entity ROM Production Markets Start-Up (Years) Tweefontein GCSA (In execution) 13.6Mtpa Export/Eskom 20 Wonderfontein Umcebo (In execution) 3.6Mtpa Export/Eskom 14 Zonnebloem GCSA 2015 10Mtpa Export/Eskom 16 Argent Shanduka 2015 2.4
Slide 17: Tweefontein Optimisation Project
Tweefontein Optimisation Project Tweefontein Project • Glencore Effective Ownership: 79.8% • Capex: US$823M • Brownfields expansion of existing operations • Replacement of 3 old processing plants with modern plant • Construction of rapid loading rail terminal • Development of large open cut mine wit
Slide 18: Wonderfontein Project
Wonderfontein Project Project description • Umcebo Effective Ownership: 50% • Capex: US$94M • Construction of double stage CHPP; contractor open cut mine and siding • Production capacity: 3.6Mtpa ROM; 2.5Mtpa Saleable • Thermal: 56% Export; 44% Domestic Project Status • Opencut Mine Commenced • Firs
Slide 19: Argent Project
Argent Project Project description • Glencore Effective Ownership: 49.99% • Capex: US$73M • Construction of CHPP; contractor opencut mine and siding • Production capacity: 2.4Mtpa ROM; 1.5Mtpa Saleable • Thermal: 56% Export; 44% Domestic Project Status • Feasibility stage • Construction to commence
Slide 20: Water treatment plant
Water treatment plant Project description • Development of a 3 stage Water Treatment Plant including pre-treatment; RO; ultra filtration and associated infrastructure • Capex: US$53M • Production capacity: 15M l/day Project Status • Front end engineering design • Construction to commence Q2 2014 • F
Slide 21: HSEC Performance – South Africa
HSEC Performance – South Africa Health and Safety • Continued focus on the reduction of occupational diseases • Maintain Hygiene Monitoring programme • Early intervention program implemented • Introduction of the SafeWork – SafeCoal program • Reduction in Injury Frequency Rates • Contractor Manageme
Slide 22: Corporate Social Involvement – South Africa
Corporate Social Involvement – South Africa • Glencore is committed to undertaking and contributing to activities and programmes designed to improve the quality of life for people in the communities in which we operate • In 2012 alone we contributed over US$10.0M in our efforts to improve the lives
Slide 23: Health Care
Health Care Workplace intervention Global award winning HIV/AIDS prevention programme in partnership with provincial departments of Health (Three times winner of Global Business Coalition (GBC) award for Business Excellence) Community Health Intervention • Delmas Clinic • Hlalanikahle Clinic • Ermel
Slide 24: Enterprise Development
Enterprise Development Enterprise Development Projects initiated as part of Corporate Social Investment (CSI) and Social Labour Plan (SLP) commitments • Silindokuhle Sewing Project • Sebenzana Farming Project • Kgasepo Granite • Jewellery Making Project • RAJ Construction • Mavalee Canteen • Penuel
Slide 25: Our economic contribution – South Africa
Our economic contribution – South Africa • Glencore is a significant contributor to the South African economy • About 40,000 employees at our South African Operations • c.19,000 in Coal and over 21,000 in Alloys • Close to 160,000 people benefit from our employees including their families and depend
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