2018 CORPORATE PROFILE AUSTRALIA · 2019. 8. 11. · 2 Glencore 2018 Corporate Profile Australia...

2018 CORPORATE PROFILE AUSTRALIADiversified. Dedicated. Driven.

16,300 employees and contractors in

AustraliaOne of the

largest buyers of grain and

oilseeds from Australian growers

One of Australia’s

largest producers of copper, zinc, nickel and

cobalt

Australia’s largest

thermal coal producer

About GlencoreWe are one of the world’s largest natural resource companies. We own and operate a diverse mix of assets all over the world, and we’re engaged at every stage of the commodity supply chain; a unique business model that maximises value for all our stakeholders.

Our business covers three broad sectors: Metals and Minerals, Energy Products and Glencore Agriculture, which are supported by our extensive global marketing network.

We are present at every point of the value chain, from where commodities are sourced to where they are consumed.

146,000Employees and contractors

90Commodities across three business segments

4,000Employees in marketing

1,200Vessels on the ocean at any one time

7,000+Long-term relationships with suppliers and customers

Uniquely diversified by commodity,

geography and activity

The right commodity mix

for changing needs

A unique marketing business that extracts value across the entire

supply chain

• Fully integrated across the commodity supply chain

• Presence in 50 countries across 150 operating sites

• Producing and marketing more than 90 commodities across three business segments

• Diversified across multiple suppliers and customers

• Future demand patterns for maturing economies are likely to favour mid and late cycle commodities

• Major producer of later cycle commodities including the enabling materials (copper, cobalt, nickel) that underpin the battery chemistry and infrastructure likely to power electric vehicles and low emission storage systems

• As a marketer of commodities, we can extract value from the full range of arbitrage opportunities

• We create value from our economies of scale, our extensive supply base, our logistics, risk management and working capital financing capabilities

www.glencore.com

Metals and minerals

Energy Agriculture

2 3Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia

Our Australian operationsAustralia is an important part of our global business. We’ve operated here for 20 years and hold significant interests in a range of commodity industries across all mainland states and the Northern Territory.

Aurukun

Kwinana

Townsville

Cairns

Melbourne

Sydney( Regional headquarters)

Port Kembla

Brisbane

Mackay

Bowen

Gladstone

Mount Isa

Borroloola

Darwin

Cobar

Adelaide

KalgoorliePerth

Newcastle

In 2017, Glencore contributed more than $15.1 billion to regional, state and national economies in Australia.*


$1.9 bWages and salaries

$10.7 bSpent on goods and services

$1.4 bTaxes and royalties paid to state and federal governments

$1.1 bCapital and sustaining investment

$9 mRegional community investment initiatives

About Glencore

* The taxes and royalties figure represents Glencore’s share of every operation we operate and manage in Australia. All other figures represent 100% of the operations that Glencore manages in Australia and include our joint venture partners’ interests in Glencore Agriculture, Ernest Henry Mining (Copper) and our various coal joint ventures. All dollar figures in this document are AUD, and relate to the 2017 calendar year, unless otherwise stated.

Technology

Metals & mineralsCopper

BauxiteNickel

City/Town

Zinc

Energy products

CoalOil

AgriculturePort facilities and storageContainer packing & processing facilitiesKey upcountry storage sites


–– CSA Mine

–– Teralba–– West Wallsend–– Westside–– Liddell–– United

– Mount Margaret Mining – Mangoola – Blakefield South

–– Viterra

–– Ulan OC (expansioni

–– Mount Isa Mines

– Xstrata IPO

–– Cook–– Narama–– Ravensworth

– MIM Holdings Limited – Mount Isa Mines – Ernest Henry Mining – Copper Refineries Limited – Townsville Port Operations – Bowen Coke – McArthur River Mining – Oaky Creek – Newlands – Collinsville – Rolleston

– Glencore Grain

– Xstrata acquisition

– Ulan West – Ravensworth North – Rolleston (expansion)

– McArthur River Mining (expansion)

– Liddell (expansion)

– Resource Pacific – Ravensworth

Underground

The history of our business in AustraliaGlencore has been a major investor in Australia for 20 years. Our operations and investments have created and maintained thousands of jobs, directly and indirectly, and support thousands of businesses across the country.

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

– Minara Resources – Murrin Murrin

– Cumnock Coal – Mt Owen

Operations

– Bulga – Beltana – Bulga South – Baal Bone

– Glencore Bunkers

– Integra

– United Wambo – Clermont

– Glendell (expansion)

– Ernest Henry Mining (transition from open cut to underground)

–– Lady Loretta–– McArthur River Mining

– Jubilee Mines–– Sinclair–– Cosmos

–– Tahmoor

(expansion)

(George Fisher Mine expansion)

Copper Zinc Nickel Coal Oil Agriculture

(expansion)

About Glencore

–– Ulan –– Hunter Valley Operations


CoalOur 2017 contribution


$894 mWages and salaries


$388 mCapital investment

We are Australia’s largest coal producer, with 17 mining operations across New South Wales and Queensland. In 2017 we produced over 88 million tonnes of saleable thermal and coking coal. Our coal is exported from the ports of Abbot Point, Dalrymple Bay, Wiggins Island Coal Export Terminal, RG Tanna coal terminal (in Queensland) and from the Port of Newcastle and Port Kembla (in NSW).

Australian management team

Peter Freyberg, Global Head of Coal Assets

Ian Cribb, Chief Operating Officer, Coal Assets Australia

Energy products

OPERATIONS2 METHODS PRODUCTS 2017 PRODUCTION1

Collinsville Open Cut Open cut Thermal, Coking 2,150,000 t

Newlands Open Cut Open cut Thermal, Coking 5,645,000 t

Clermont Open Cut Open cut Thermal 11,780,000 t

Oaky Creek Coal Underground Coking 4,817,000 t

Rolleston Open Cut Open cut Thermal 14,417,000 t

Ulan Coal Open cut/underground Thermal 10,419,000 t

Mangoola Open Cut Open cut Thermal 9,002,000 t

Liddell Open Cut Open cut Thermal, Coking 2,878,000 t

Mount Owen Coal Open cut Thermal, Coking 7,805,000 t

Ravensworth Coal Open cut Thermal, Coking 7,200,000 t

Integra Underground Coking 792,000 t

Bulga Coal Open cut/underground Thermal, Coking 9,694,000 t

Tahmoor Underground3 Underground Coking, Thermal 1,598,000 t1 Managed equivalent saleable production t = tonnes

2 Glencore also has ownership interests in the United coal mine in the NSW Hunter Valley which is not currently in production. We have also acquired a 49% stake in Hunter Valley Operations open cut coal mine in NSW and are in the process of acquiring an 82% stake in the Hail Creek open cut coal mine in Queensland

Energy products

3 In 2018, Glencore sold the Tahmoor coal mine to SIMEC Mining

9Glencore 2018 Corporate Profile Australia8 Glencore 2018 Corporate Profile Australia

Energy products

ABCDEFG

D

A

B C

E

F

G

Galilee Basin

Surat Basin

Bowen Basin

Newlands Coal

Oaky North

Mackay

Rockhampton

WollongongPort Kembla Coal Terminal

Collinsville Open Cut

Clermont Open Cut

Rolleston Open Cut

Tahmoor Underground

Ravensworth Coal

NewcastlePort Waratah Coal Services

Coalfi eldsGunnedah Coalfi eldWestern Coalfi eldHunter Coalfi eldGloucester Coalfi eldNewcastle Coalfi eldCentral Coalfi eldSouthern Coalfi eld

Integra Underground

Ulan Coal

Mount OwenGlendell

Mount Owen Coal

Bulga CoalBulga Open Cut

Bulga Underground

Mangoola Open Cut

Abbot Point Coal Terminal (T1)Bowen

RG Tanna Coal Terminal

Wiggins Island Coal Export Terminal

Gladstone

Dalrymple Bay Coal Terminal

UlanUlan West

Ulan Underground

Liddell Open Cut

Hunter Valley Operations *

NEW SOUTH WALES

Brisbane

Sydney(Regional headquarters)

QUEENSLAND

ABCDEFG

D

A

B C

E

F

G

Galilee Basin

Surat Basin

Bowen Basin

Newlands Coal

Oaky North

Mackay

Rockhampton

WollongongPort Kembla Coal Terminal

Collinsville Open Cut

Clermont Open Cut

Rolleston Open Cut

Tahmoor Underground

Ravensworth Coal

NewcastlePort Waratah Coal Services

Coalfi eldsGunnedah Coalfi eldWestern Coalfi eldHunter Coalfi eldGloucester Coalfi eldNewcastle Coalfi eldCentral Coalfi eldSouthern Coalfi eld

Integra Underground

Liddell Open Cut

Ulan Coal

Mount OwenGlendell

Mount Owen Coal

Bulga CoalBulga Open Cut

Bulga Underground

Mangoola Open Cut

Abbot Point Coal Terminal (T1)Bowen

RG Tanna Coal Terminal

Wiggins Island Coal Export Terminal

Gladstone

Dalrymple Bay Coal Terminal

UlanUlan West

Ulan Underground

NEW SOUTH WALES

Brisbane


QUEENSLAND

Port facilities and storage Port facilities and storageRail Rail

Other asset Other asset

Mine site Mine site

Open cut mine Open cut mineUnderground mine Underground mine

Our coal operations in New South Wales Our coal operations in Queensland

* Glencore completed the acquisition of a 49% stake in Hunter Valley Operations in May 2018.


Mount Isa

Kalgoorlie

Coogee

Townsville

Cairns

Newcastle

Port Kembla

Brisbane

Mackay

Port BotanyPort Jackson

Gladstone

Sydney

Melbourne

Darwin

Adelaide

Perth

OilGlencore’s oil business in Australia supplies our mining and agricultural operations’ fuel needs. We also supply fuel into the wholesale fuel market, independents and the marine fuel industry.

Energy products

Metals and minerals

Site

Pipeline

TruckBarge

12 Glencore 2018 Corporate Profile Australia 13Glencore 2018 Corporate Profile Australia

Townsville operations

Rockhampton

Bowen

Townsville

CSA Mine

Ernest Henry Mining

Mount Isa Mines

Underground mine

Underground mine

X41Enterprise

Mount Isa

Newcastle

Cloncurry

Copper concentrator

Copper concentrator

Copper concentrator

Copper Refi neries Ltd

Copper smelter

Glencore Port Operations

Port Waratah

Sydney

QUEENSLAND

NORTH WEST QUEENSLAND

MINERALS PROVINCE

(Regional headquarters)

NEW SOUTH WALES

Brisbane

CopperOur 2017 contribution



$650 mSpent on goods and services


Our Australian copper business is integrated across the entire supply chain, from resource development, mining and processing, to transport, storage and export to worldwide customers.

Queensland

Our north Queensland copper mining and processing assets include the Mount Isa Mines complex, Ernest Henry Mining near Cloncurry, and our copper refinery in Townsville. Our copper is exported from the Port of Townsville. Our north Queensland copper operations employ about 3,200 people, including contractors.

New South Wales

Our CSA Mine in Cobar is Australia’s highest grade copper mine. Copper from the mine is exported via the Port of Newcastle. Our CSA Mine employs about 545 people.


Mike Westerman, Chief Operating Officer, Copper Assets Australia

Matt O’Neill, Chief Operating Officer, North Queensland Copper Assets

Pedro Quinteros, Executive Officer, CSA Mine

OPERATIONS ASSETS 2017 PRODUCTION

Mount Isa Mines copper operations

Enterprise underground mineX41 underground mineCopper concentratorCopper smelter

Cathode and copper in concentrates

229,097 t 1

Ernest Henry Mining Underground copper mineCopper concentrator

Copper Refineries Ltd Electrolytic copper refinery

CSA Mine Underground mineCopper concentrator

Copper in concentrates

53,400 t

1 Mount Isa, Ernest Henry, Townsville – total production, including third party feed

t = tonnes

Metals and minerals

Mine site

Port facilities and storageRail

Underground mineOther asset


ZincOur 2017 contribution





Glencore hosts two of the world’s largest zinc resource bases at Mount Isa Mines and McArthur River Mine.

Queensland

In North Queensland, we operate the George Fisher underground mine, Lady Loretta underground mine, a zinc-lead concentrator, zinc-lead filter plant and lead smelter. Our zinc and lead products are exported from the Port of Townsville. Our Mount Isa zinc operations employ about 1,250 people.

Northern Territory

Our McArthur River Mine (MRM) is located about 970 kilometres south-east of Darwin and includes an open cut mine and processing facilities. Our zinc and lead is exported from the Bing Bong loading facility on the Gulf of Carpentaria. Our MRM operations employ about 950 people.


Greg Ashe, Chief Operating Officer, Zinc Assets Australia

Denis Hamel, Executive General Manager, Zinc Assets Australia

Metals and minerals

Mount Isa

NORTH WEST QUEENSLAND

MINERALS PROVINCE

Darwin

McArthur River Mine

NORTHERN TERRITORY

Bing Bong Loading Facility

Lady Loretta Mine

Borroloola

Rockhampton

Brisbane

Townsville operations

Townsville

Mount Isa MinesGeorge Fisher Mine

Open cut mine

Zinc-lead concentratorLead smelter

Zinc-lead concentrator Glencore Port Operations

QUEENSLAND

GULF OF CARPENTARIA

OPERATIONS ASSETS 2017 PRODUCTION

Mount Isa zinc operations

George Fisher underground mineZinc-lead concentrator Lead smelterLady Loretta underground mine

Zinc in concentratesLead in concentratesSilver in concentrates

436,000 t156,400 t

7,114,000 oz

McArthur River Mine

Open cut mineZinc-lead concentrator Bing Bong Loading Facility

t = tonnes oz = ounces


Other asset

Mine site

Open cut mineUnderground mine


NickelOur 2017 contribution

950Employees and contractors




We are one of Australia’s largest nickel and cobalt producers. Our Murrin Murrin hydrometallurgical nickel project is located between Leonora and Laverton in the north-eastern Goldfields region of Western Australia.

Murrin Murrin is operated by Minara Resources, wholly owned by Glencore. Our nickel and cobalt is exported from Kwinana, south of Perth.

In 2017, we produced 41,990 tonnes of nickel and 3,042 tonnes of cobalt in metal (including third-party feed).

Australian management

Peter Hancock, Vice President, Minara Resources

Metals and minerals

EASTERN GOLDFIELDS

TERRANE

Perth

WESTERN AUSTRALIA

Kwinana

Melbourne

Adelaide

Kalgoorlie

LavertonLeonora

Darwin


Townsville ISAKIDD Townsville

Glencore Technology offi ceBrisbane

Murrin Murrin


Nickel mine

Open cut mineNickel and cobalt processing plant

Glencore TechnologyGlencore Technology develops innovative products that help producers extract more from their metal and mineral processing assets. ISASMELT™, IsaKidd™, IsaMill™, Jameson Cell and Albion Process™ have been developed in the real world and proven in more than 400 operations across every continent.

ISASMELT™ is still helping operations break recovery records in smelting after more than 30 years. IsaMill™ and Jameson Cell deliver more and better concentrate to downstream stages in mining operations. IsaKidd™ cathode plates and robotics account for more than 11 mt per annum of world copper production. Albion Process™, commercialised in 2009, is delivering improved returns, through tougher environments, over traditional mineral leaching techniques.

Glencore Technology also provides Glencore with expertise in process improvement, flowsheet performance and metallurgical trouble-shooting.

Australian management

Paul Telford, General Manager, Glencore Technology

Mine site


Open cut mineOther asset

Jameson Cells deliver more concentrate per dollar, per metre and per year in more than 350 installations around the world.


AgricultureOur 2017 contribution





We are a significant contributor to the agricultural industry in Australia, connecting agricultural commodities safely and efficiently between growers and customers in Australia and overseas.

We originate, handle, store, transport and market a range of agricultural commodities, including wheat, barley, oilseeds, pulses, sorghum, meals and cotton.

In 2017, our marketing business bought more than 6.2 million tonnes of agricultural commodities directly from growers across Australia to connect with domestic and overseas customers.

Viterra’s storage and handling business received 6.9 million tonnes of grain in 2017, with 7.1 million tonnes shipped through its South Australian ports on behalf of 10 exporters.


Tim Krause, General Manager, Viterra

Philip Hughes, General Manager Trading, Glencore Agriculture

Narrabri

Wallaroo

Port Giles

Port Lincoln

Outer HarborInner Harbour

ArdrossanDooen

Thevenard

Two Wells

Newcastle

Sydney

SOUTH AUSTRALIA

NEW SOUTH WALES

VICTORIA

(Regional headquarters)Adelaide

Melbourne


Container packing and processing facilitiesKey upcountry storage sites

STORAGE AND HANDLING SITES

About 10 million tonnes total storage, with sites ranging in capacity from 6,000 tonnes to over 600,000 tonnes

CONTAINER PACKING AND PROCESSING FACILITIES

Port Adelaide Two Wells

Dooen Narrabri

Melbourne

PORTS Thevenard Port Lincoln Wallaroo

Ardrossan (non-grain) Port Giles Outer Harbor (Adelaide)

Inner Harbour (Adelaide)

COMMODITIES Wheat Barley Canola Lentils

Peas Chickpeas Faba beans Lupins

Sorghum Protein meals Cotton

CORPORATE OFFICES Adelaide MelbourneGRAIN ACCUMULATION OFFICES

Fremantle Swan Hill

Dooen Wagga Wagga

Narrabri Toowoomba


Taxes and RoyaltiesIn 2017, Glencore paid more than $1.4 billion in taxes and royalties to Federal and State Governments in Australia. In the past 10 years, Glencore operations have paid more than $12 billion in taxes and royalties in Australia, of which nearly $2 billion was corporate income tax.

Daily Commodity Price Relative ChangeWhen it comes to our tax and royalty contribution, it is important to note:

• Corporate income tax is paid on taxable profits, not on revenue

• Our business is cyclical, highly capital intensive and our investment is long-term in nature

• Our profitability in Australia is generally driven by the price of our core commodities: coal, copper, nickel and zinc

• The price of all of these commodities improved considerably during 2017 after a five-year downturn, marked by low prices and low profitability. The improved commodity market and prices was reflected in Glencore’s profitability in Australia, and hence corporate tax liability

• Mining royalties are generally calculated and paid as a percentage of revenue per unit (tonne, ounce) of product sold

0

20

40

60

80

100

120

140

160

Jan2013

Jan2011

Jul2013

Jul2011

Jan2014

Jan2012

Jul2014

Jul2012

Jan2015

Jul2015

Jan2016

Jul2016

Jan2017

Jul2017

Jan2018

0

20

40

60

80

100

120

140

160Indexed to 1 January 2011 (%)

LME Copper Spot LME Zinc SpotLME Nickel Spot gc NEWc (Thermal Coal)

Source: Bloomberg

About Glencore

Taxes and royalties paid since 2008 (summarised)

COMPANY TAX ROYALTIES

COMPANY PAYROLL AND OTHER TAXES TOTAL

Federal Government $1,910 m – $3,374 m $5,284 m

State Government – $5,565 m $1,262 m $6,827 m

Total $1,910 m $5,565 m $4,636 m $12,111 m

Taxes and royalties paid for calendar year 2017

COMPANY TAX ROYALTIES

COMPANY PAYROLL AND OTHER TAXES TOTAL

Federal Government ($0) – $562 m $562 m

State Government – $747 m $165 m $912 m

Total ($0) $747 m $727 m $1,474 m


A unique business modelGlencore is highly diversified by geography and by commodity. We participate throughout the entire natural resources supply chain.

Exploration, acquisition and development

Our focus on brownfield sites and exploration close to existing assets lowers our risk profile and lets us

use existing infrastructure, realise synergies and control costs.

Extraction and production

We mine and beneficiate minerals across a range of commodities, mining techniques and countries, for processing or refining at our own

facilities, or for sale.

Processing and refining

Our expertise and technological advancement in processing and refining mean we can optimise our end products

to suit a wider customer base and provide a security of supply as well as valuable

market knowledge.

Blending and optimisation

Our ability to blend and optimise allows us to offer a wide range of product specifications,

resulting in a superior service and an ability to meet our customer specific requirements.

Logistics and delivery

Our logistics assets allow us to handle large volumes of commodities, both to fulfil our obligations and to take

advantage of demand and supply imbalances. These value added services make us a preferred counterparty for

customers without such capabilities.

Coal

Thermal coal is mainly used to generate electricity or heat. It is particularly useful for generating baseload power. Coking coal is used in steel production. We produce both premium ‘hard coking coal’ and lower-quality ‘semi-soft coking coal’, to suit customer needs.

Copper

From electronics, renewable energy and the electric car revolution, copper has a vast range of household and industrial uses. It is the preferred metal in many of these applications because of its superior electrical conductivity, and ability to heat up and cool down quickly.

Zinc

Zinc is mainly used to galvanise steel or iron – that is, to apply a zinc coating to stop it rusting. Galvanised steel is used in buildings, cars and electronics. Lead has a wide range of industrial uses including car batteries, weights, solders and radiation protection.

Nickel

Nickel is mainly used to make stainless steel: it adds strength and corrosion resistance to the steel, and is also used in types of steel designed to be less magnetic. Nickel compounds are used in batteries – increasingly so in the powerful batteries used in electric vehicles.

Agricultural products

Glencore Agriculture’s main customers include food manufacturers, animal feed manufacturers, consumer product processors, local importers and distributors and government purchasing bodies. From farm to fork, we connect growers with customers safely and efficiently.

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CONTACT

Agata Graham Tel. +61 7 3833 8365 [email protected]

Francis De Rosa Tel. +61 2 8247 6352 [email protected]

Cass McCarthy Tel. +61 2 8247 6353 [email protected]

Glencore Operations Australia Pty Ltd ABN 40 128 115 140

Level 44, Gateway 1 Macquarie Place Sydney NSW 2000 Australia

T. +61 2 8247 6300 F. +61 2 9251 4740

www.glencore.com.au

@GlencoreAus

facebook.com/GlencoreAus

2018 CORPORATE PROFILE AUSTRALIA · 2019. 8. 11. · 2 Glencore 2018 Corporate Profile Australia...

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