2018 CORPORATE PROFILE AUSTRALIA Diversified. Dedicated. Driven.
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.*
16,300Employees and contractors
$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
4 5Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
–– 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
6 7Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
CoalOur 2017 contribution
7,600Employees and contractors
$894 mWages and salaries
$5.2 bSpent on goods and services
$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
Sydney(Regional headquarters)
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.
10 11Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
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
3,700Employees and contractors
$450 mWages and salaries
$650 mSpent on goods and services
$311 mCapital investment
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.
Australian management team
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
14 15Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
ZincOur 2017 contribution
2,200Employees and contractors
$254 mWages and salaries
$558 mSpent on goods and services
$331 mCapital investment
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.
Australian management team
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
Port facilities and storageRail
Other asset
Mine site
Open cut mineUnderground mine
16 17Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
NickelOur 2017 contribution
950Employees and contractors
$107 mWages and salaries
$580 mSpent on goods and services
$18 mCapital investment
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
Sydney(Regional headquarters)
Townsville ISAKIDD Townsville
Glencore Technology offi ceBrisbane
Murrin Murrin
Port facilities and storageRail
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
Port facilities and storageRail
Open cut mineOther asset
Jameson Cells deliver more concentrate per dollar, per metre and per year in more than 350 installations around the world.
18 19Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
AgricultureOur 2017 contribution
1,650Employees and contractors
$98 mWages and salaries
$3.6 bSpent on goods and services
$24 mCapital investment
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.
Australian management team
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
Port facilities and storageRail
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
20 21Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
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
22 23Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
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.
24 Glencore 2018 Corporate Profile Australia Glencore 2018 Corporate Profile Australia
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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