Glencore

Annotations:

• Global Energy Commodity Resources   “the biggest company you’ve never heard of” 
• - globally diversified natural resource company - since 1974
• https://www.youtube.com/watch?v=u6rSBifsvwg

1. Other company names
   1. Acquisitions / Subsidiaries

      Annotations:

      • Xsastra, Marc Rich + Co AG Century Aluminium Katanga, Mutanda, Nikanor, Mopani, Minara, Prodeco Granaria, Viterra Südelektra AG Hunter Valley Operations Chevron, Volcan, BaseCore, Sphere Minerals Chemoil ALE Combustíveis (ALE) Kazzinc
   2. Shareholders

      Annotations:

      • Qatar Investment Authority - 19,5 % Russian oil company Rosneft
      • https://www.marketscreener.com/GLENCORE-8017494/company/
   3. Competitors

      Annotations:

      • Trafigura, Vitol, Cargill, Koch, DT GroupImpala Terminals, Trafigura Mining Group, Galena Asset Management, Puma Energy,  Anglo American, Rustenburg Platinum Mines 
      • TOP: https://www.telegraph.co.uk/finance/commodities/8451455/Top-ten-global-oil-and-commodities-traders.html
      • RUSAL: https://www.bloomberg.com/news/articles/2018-04-06/glencore-s-russian-aluminum-ties-just-got-a-lot-more-complicated
2. News

   Annotations:

   • Glencore plans to spend an average of $1.2bn a year between 2018 and 2020 on expanding its copper, zinc, nickel and coal mines. https://www.ft.com/content/da29b7c0-df2e-11e7-8f9f-de1c2175f5ce
   • FORBES LIST 2018: Glencore at No. 64 vs. No. 417 in 2017
   • COBALT for electric cars - 25% with Glencore https://www.forbes.com/sites/judeclemente/2018/05/09/elon-musk-needs-more-cobalt-and-so-do-we/#1de6db84b9f1
   • Greece has shortlisted Anglo-Swiss Glencore and Switzerland's Vitol for the stake: https://www.marketscreener.com/GLENCORE-8017494/news/Hellenic-Petroleum-sees-2018-EBITDA-topping-1-billion-euros-CEO-27199169/
   • Plan to make a takeover offer for Bunge, the US grains trader.
   • The company raised earnings guidance for its trading or “marketing” business.
   • Dividend policy for 2018 comprises a fixed payment of $1bn plus a minimum payout of 25 per cent of the cash generated by its mines, or industrial assets.
   • Following the completion of its $500 million smelter upgrade, our Zambian copper operation, Mopani, is continuing to improve its capture of SO2 emissions. 
   • During 2017, the European Union’s (EU) Conflict Minerals Regulation as finalised. It will come into force on 1 January 2021 and all affected companies will need to have in place appropriate measures by the end of 2020.
   • During 2017, Katanga installed 16 new turnstiles to improve access and introduced additional biometric controls. 
   1. Future Innovation

      Annotations:

      • At our Sudbury Integrated Nickel Operations (INO) in Canada, we are developing deposits that once operational will be wholly operated with battery electric powered vehicles (EVs).
      • The Nikkelverk refinery recently completed the decades-long transition of wire anodes used in the electrowinning process to refine nickel to box anodes, reducing energy costs and increasing production efficiency. 
      • In 2017, Laurentian University’s Indigenous Sharing and Learning Centre (ISLC) officially opened, bringing together students 
      1. IoT
         1. Safety

            Annotations:

            • Safety: risk awareness training, virtual reality training materials on each fatal hazard - Mopani https://twitter.com/glencore/status/786944661738749953Frontline  Safety: Leadership Plans (Australia, Colombia, South Africa)
            • Transportation safety: "monitoring maintenance schedules and driver licence renewal dates, as well as using GPS tracking to assess bus drivers’ driving behaviour, dispatch buses efficiently and coordinate buses to ensure that employees’ transportation is conducted in a safe manner"
            • Example: Mount Isa Mines in Australia has developed an app that allows local residents to track air quality https://www.qld.gov.au/environment/pollution/monitoring/air-programs/mount-isa
            • Process safety management: PSM is an operational framework for managing the integrity of the systems and processes involved in handling hazardous substances
            • Earth Moving Equipment Safety Round Table (EMESRT). This organisation was established in 2006 to present a common industry approach to reducing health and safety risks from operating and maintaining mining equipment through original equipment manufacturers (OEM), contractor and end-user engagement. 
            • Collision avoidance technology: - diesel-powered mobile equipment !!!!!!!!!!!!!!!
            • Compliance Summit in Switzerland
            • https://www.bbc.co.uk/news/business-44728346
            • https://www.guardvant.com/glencore-australia-selects-guardvant-technology-fatigue-distraction-detection/
            1. SafeWork

               Annotations:

               • SafeWork initiative is a global program focusing on changing attitudes towards safety to bring about sustainable long-term change. The program revolves around 12 principal hazards identified at our operations, and implements life-saving behaviours and protocols developed to target these hazards. Group-wide implementation commenced during 2014. 
               • https://www.linkedin.com/feed/update/urn:li:activity:6424909591624052737
            2. SafeAgri

               Annotations:

               • The initiative’s aim is to provide everyone with the knowledge and tools to perform every task safely. We are focused on four fundamental components: life-saving behaviours, safety leadership, catastrophic hazard management and fatal hazard protocols. 
            3. Catastrophic Hazard Management

               Annotations:

               • "events that – though unlikely – could cause widespread loss of life, or significant environmental harm, resulting also in major reputational or financial damage"
         2. Environment

            Annotations:

            • Carbon capture and storage (CCS): The Carbon Transport and Storage Corporation Pty Ltd (CTSCo)’s integrated Surat Basin CCS project is a wholly owned subsidiary of Glencore. CTSCo’s project is a scalable demonstration project.
            • Health: HIV issues in Africa, cervical cancer programmes, malaria https://www.linkedin.com/feed/update/urn:li:activity:6405043108010094593 - moving heavy loads- noise / dust / substance-related hazardsLocal NGO partnerships: Kongo, Chad- Our Katanga and Mutanda copper operations in the DRC are supporting holiday camps for school children and agricultural initiatives to deter the participation of children and women in artisanal mining.
            • Environment: no major or catastrophic environmental incidents -Awarded a ‘Level Four – Strategic Assessment’ (highest level) by the Transition Pathways Initiative - Established an initial Group-wide carbon emission intensity reduction target of at least 5% on 2016 levels by 2020 -  using monitoring stations and systems that help abate emissions (Mount Isa Mine in Australia)
            • CDP Water: data and insights to make better decisions, manage risk and capitalize on opportunities  https://www.cdp.net/en/responses/35349 -  catchment-based water management https://www.icmm.com/guide-to-catchment-based-water-management  - participatory monitoring programmes with local communities
            • Waste: Tailings Management Protocol TSM Performance in Canada since 2004 TSF: tailings storage facilities undergo regular inspections in line with the stringent regulations relating to their management. We continuously monitor our TSF to support their integrity and structural stability. We work to minimise all types of emissions from our stacks, mining operations and processing facilities. We use abatement systems for our air emissions to meet the applicable threshold values.
            • Highlights 2017 - strategic priorities - fatalities - LTIFR: Lost Time Injury Frequency Rate - TRIFR:  total recordable injury frequency rate -  five-year water targets for 2017–21 -  internal and external audit programme for high-risk tailings storage facilities - Community Leadership Programme toolkit to all assets - responsible sourcing
            • - Established an initial group-wide carbon emission intensity reduction target of at least 5% on 2016 levels by 2020 https://www.linkedin.com/feed/update/urn:li:activity:6396636903059320832/ - Started to implement the Task Force on Climate-related Financial Disclosures’ guidance for consistent climate-related financial risk disclosures 
            • - Reduce GHG emission with targets (Andrew Fikkers)
            • Refining our water balance tool and finalising the harmonisation of our water reporting to align with the Water Accounting Framework (WAF) of the Minerals Council of Australia
            • The Agency for Assessment and Environmental Control (OEFA), part of the Ministry of Environment, undertakes the external audits
            • In South Africa, the government introduced amended industryspecific SO2 emissions limits that will come into force in 2020
            • Identifying effective noise management controls during the mine planning, assessment and operational phases. These include implementing activity specific noise controls, minimising haul distances as far as practical and minimising the clearing of trees, bush and grass during construction work  Using automated systems to identify adverse meteorological conditions likely to result in noise impacts.  Avoiding placing operations on raised and exposed areas to minimise noise and dust generationPlanning for progressive and temporary rehabilitationSetting aside sufficient water for dust suppressionUndertaking noise and air quality awareness training for employees
            • Sustainability:  https://www.youtube.com/watch?v=RaD3dDNYe2w
            • Monitoring:  http://www.glencore.com/index/media-and-insights/insights/towards-cleaner-air
            • Measuring water:  https://www.youtube.com/watch?v=fXo6ufV9wAc&feature=youtu.be
   2. Older facts

      Annotations:

      • 2013: Puerto Nuevo Port: https://www.miningreview.com/glencore-xstrata-s-us-550-million-puerto-nuevo-port-opened/
      • 2014: ICMM membership: International Council on Mining and Metals (ICMM) was founded in 2001 to improve sustainable development performance in the mining and metals industry
      • 2015: Plenary of theVoluntary Principles on Security and Human Rights
      • 2016: Canada Pension Plan Investment Board Signs Agreement to Acquire a Significant Strategic Stake in Glencore Agricultural Products
      • 2017: new gas stations in Mexico, Tabasco (G500)  https://www.reuters.com/article/us-mexico-oil-glencore-idUSKCN1AX2BE Chevron: https://www.bloomberg.com/news/articles/2018-05-21/glencore-is-said-to-near-1-billion-chevron-southern-africa-deal
      • Controversy:  - tax evasion- illegal business dealings with Iran / Iraq / Hussein / USSR / apartheid Africa- allegations of corruption and severe human rights violations, child labor- pollution- Church of England climate change issues 
      • first-ever live and interactive global webcast:  https://www.linkedin.com/feed/update/urn:li:activity:6407229657913061377/
      • https://www.bloomberg.com/news/articles/2018-07-11/glencore-sets-up-board-committee-to-deal-with-corruption-probe
3. Members
   1. Board

      Annotations:

      • 1) Anthony Hayward: rig geologist, Birmingham
      • 2) Ivan Glasenberg: Rosneft Oil Company, Witwatersrand https://www.reuters.com/article/glencore-shareholders-idUSL5N11H21E20150913
      • 3) Peter Coates: AO, Event Hospitality and Entertainment Limited, mining engineering, NSW
      • 4) Leonhard Fischer: BHF Kleinwort Benson Group S.A.,Credit Suisse, Allianz, University of Georgia
      • 5) Martin Gilbert: SKY PLC, Heriot-Watt University, Malaysia, Aberdeen, Deloitte
      • 6) John Mack: Morgan Stanley, Credit Suisse, Enduring Hydro and Corinthian Ophthalmic, Advisory Board of China Investment Corporation, Duke University
      • 7) Patrice Merrin: Sherritt, Luscar, Acronic, CML Healthcare, Alberta Climate Change and Emissions Management Corporation, Canadian Advisory Panel on Sustainable Energy Science and Technology, Queen’s University Ontario
      • 8) Gill Marcus: African National Congress, Reserve Bank, Abse, Gold Fields, Bidvest, University of South Africa     
   2. Connections

      Annotations:

      • Dan Gertler: israeli billionaire, Nikanor
      • Oleg Deripaska: RUSAL member, russian oligarch
      • William Macaulay & Peter Grauer: ex non-executive director
      • Aristotelis Mistakidis: co-director, deals in DRC
      • Mike Ciricillo: Peru
      • Jyothish George: CRO/Head:Iron Ore Trading
      • David Streule: Head of Bauxit
      • Gary Nagle: Head of Alloys
      • Stuart Cutler: Head of Ferrocrome
      • Steven Kalmin: Chief Financial Officer
      • Chris Eskdale & Daniel Maté: Head of Zinc
      • Peter Freyberg: ex CEO Coal
      • Kenny Ives, Patrice Merrin: sustainability
      • Andrew Fikkers: Climate change considerator
      • Christopher Mahoney: CEO directotor of agriculture
      • Ernest Moster: CFO Agriculture
      • Paul Smith: Head of Strategy Bruce Hogg is Managing Director and Head of Infrastructure Markus Walt: Head of Business Development Tim Formuziewich Lincoln Webb
      • Susan Visser, Director of Sustainable Development 
      • Charles Levac, Manager, Risk, Prevention and Environment
   3. LinkedIn

      Annotations:

      • Paul Smith Head of Strategy
      • Gregor Wicki Head of Business Applications
      • Mike P. Head of Global IT Infrastructure
      • Matt Fraser Head Global Infrastructure
      • Chris Redmond Head of Development
      • Olivia Reynolds Sustanable Development
      • Rick Humphreys IT Procurement manager
      • Dave Mellows HSEC & SAFEWORK
4. Profile

   Annotations:

   • 14,8 billion dollar/year 150 asset 50 countries 146.000 employees
   • 3 business segment + marketing 1) metals and minerals (copper, cobalt, zinc, lead, nickel, ferroalloys) 2) energy (coal and oil) 3) agriculture (grain, oil, seed)+) value added services: processing, storage, logistics
   • Glencore sources and markets commodities to: 1) industrial consumers 2) steel-makers 3) vehicle manufacturers 4) power companies  and processes oil and food
   1. Metal & Mineral
      1. Copper

         Annotations:

         • 2017: produced 1.3 million tonnes, and sold 4 million - mine - process - source - recycle - smelt - refine
         • Usage:  electronics, wiring, computers, heat exchange, easily recycled, renewable energy technologies, antimicrobial properties, helps infection control
         • Location:   Katanga,Mutanda, Mopani, Pasar, Ernest Henry, Mount Isa Mines, CSA Mine, Copper Refineries Ltd., Glencore port operations, Canadian Copper refinery, Horne Smelter, Glencore recycling, Collahauasi, Antamina, Antapaccay, lomas Bayas, Altonorte   
      2. Cobalt

         Annotations:

         • Usage: batteries for electric vehicles and portable electronics, by-product of copper / nickel mining, aircraft engines, hard cutting, drill bits
         • Location: Katanga, Mutanda, Murrin Murrin, Nikkelverk, Raglan mine, Sudbury INO  
      3. Nickel

         Annotations:

         • Usage: purest nickel –  one of the largest recyclers and processors of nickel-bearing materials, batteries, concentrates, intermediates, ferronickel, by-products of nickel production (cobalt, copper), precious metals and platinum-group metals, stainless steel: it adds strength and corrosion resistance, less magnetic, handle high temperatures, specialty steels and superalloys, jet engines
         • Location: Koniambo, Minara, Nikkelverk, Reglan mine, Sudbury INO
      4. Zinc & Lead

         Annotations:

         • zinc and lead metals produced from concentrates; valuable by-products such as sulphuric acid, gold and silver, which are typically mined together with zinc and lead ores, third-party producers as well
         • ZINC: galvanise steel or iron, buildings, cars, white goods and electronics, make brass and bronze, rubber, X-ray screens, pigment, optics.  LEAD: batteries, undersea cables, weights, solders and radiation protection.  
         • Location: Kazzinc, McArthur river Mine, Mount Isa, Glencore port Operations, Nordenham, Portovesme, Asturiana de Zinc, Britannia Refined Metals, Kidd Operations, Matagami mine, Brunswick lead smelter, CEZinc, Aguilar mine, los Quenuales, Volcan
      5. Ferroalloys

         Annotations:

         • Usage: chrome ore, ferrochrome and vanadium, manganese ore and alloys a.      FERROCHROME: corrosion resistant steel, stainless steel b.      MANGANESE ALLOYS: carbon steel production c.       FERROVANADIUM: strengthen specialty steel, niche and high end application, vanadium redox batteries  
         • Location: Merafe, Chrome Venture, Rhovan-Bakwena Vanadium Venture, Helena, Magareng, Thorcliffe, Waterval, Kroondal, Rietvly, Mototolo, Rhovan, Char Technologies  
      6. Others

         Annotations:

         • a.      Alumina, aluminium: bauxite, cars, planes and trains, and in recyclable food packaging, window and doorframes, roofs, facades and curtain walls b.      Iron: iron ore (huge % export to Asia), steel, buildings and bridges, cutlery, cookware and domestic appliances  
   2. Energy
      1. Coal

         Annotations:

         • Usage: power generation, steel making and industrial processes including the manufacturing of cement, aluminium and nickel, 26 operating coal mines across Australia, South Africa and Colombia, own production with agency third party and traded volumes
         • Location:  NSW, Queensland, Goedgevonden Complex, iMpunzi Complex, Izimbiwa Coal, Twefontein Complex, Cerrejón, Prodeco  
      2. Oil

         Annotations:

         • Usage: 6 million barrels a day, petrol and diesel for cars, jet fuel, heating, oil and liquid petroleum gas (LPG), asphalt used in roads, wax, lubricants
         • Location:  HG Storage International, Chemoil
   3. Agriculture

      Annotations:

      • Wheat 10% barley 24% corn sorghum vegetable oil biodiesel protein meals dry field peas chickpeas lentils edible beans lupins sugar cotton - top3 grain and seed exporter from EU, Russia, Canada, Australia - seaborne traded wheat, durum wheat, feed barley, pulses, canola, sunflower and sunflower seed / oil / meal, largest soybean plant in Argentina - presence in more than 35 countries
      1. Safety and Quality

         Annotations:

         • - Good Manufacturing Practice (GMP) - B3 QC Standards for Feed Materials - International Sustainability & Carbon Certification (ISCC) - International Featured Standards (IFS) - ISO 22000 Food Safety Management - ISO 9001 Quality Management System  
   4. Marketing

      Annotations:

      • Tasks: transporting commodities by sea, rail and truck, storing them, processing them, and delivering them to the time, quality and specification that our customers need
      • b.      Suppliers: selling commodities that we mine and produce ourselves, extensive base of third-party commodity suppliers 
      • c.       Customer segments: automotive, steel, semi-fabricators, power generation, oil and food 
      • d.      Assets: warehouses, ships, storage, port facilities and commodity processing plants 
      • e.      Added-value: blending, processing, storage, logistics, financing  
      • f.        Arbitrage: geography, time, production 
5. Values

   Annotations:

   • safety (prevention of occupational disease and injuries)
   • entrepreneurialism (professionalism, personal ownership)
   • simplicity (excellence, quality, sustainability and continuous improvement)
   • responsibility (environmental protection, human rights and health and safety) http://www.mineraglan.ca/en/raglan-agreement/Pages/raglan-education-fund.aspx
   • openness (integrity, co-operation, transparency and mutual benefit) http://www.glencore.com/index/media-and-insights/insights/Tamatumani-a-second-start-for-the-Inuit 
   1. Governance

      Annotations:

      •    1) Community and human rights: - International Labour Organization - UN Universal Declaration of Human Rights - UN Guiding Principles on Business and Human Rights - Voluntary Principles on Security and Human Rights
      • 2) Transparency: - Extractive Industries Transparency Initiative - Global Reporting Initiative
      • 3) Product Stewardship:  - UN globally harmonised system for classification and labeling of chemicals - London Bullion Market Association LMBA responsible gold guidance  
   2. Product Stewardship

      Annotations:

      • - Organisation for Economic Co-operation and Development (OECD) - 3TG (tin, tungsten, tantalum, gold) - no market under the US Dodd–Frank Act - anti-money laundering standards of the London Bullion Market Association - UN system for classifying and labeling chemicals (GHS) - London Bullion Market Association (LBMA) - guidance on gold - Nickel REACH Consortia - the Cobalt REACH Consortium - the REACH authorities - the International Maritime Organization (IMO)
6. Sustainability

   Annotations:

   • Glencore Corporate Practice (GCP)
   • HSEC summit 2018 (Health, Safety, Environment and Communities)
   • 2018: World Business Council for Sustainable Development (WBCSD) - Peter Bakker
   • COP21 (Paris) commitments
   1. ICMM

      Annotations:

      • International Council of Mining and Metals - ICMM: 1: apply ethical business practices 2: sustainable development 3: respect human rights 4: implement effective risk management strategies 5: goal of zero harm 6: continual improvement in environmental issues, 7: biodiversity and integrated approaches to land-use planning 9: develop host countries 10: proactively engage key stakeholders  
   2. UN SDG

      Annotations:

      • UN Sustainable Development Goals:  1: end poverty 2: end hunger, achieve food security 3: healthy lives and well-being 6: access to water and sanitation for all 8: sustainable economic growth 9: build resilient infrastructure 10: reduce inequality 11: make cities inclusive 12: sustainable consumption 13: urgent action to combat climate change 14: conserve the oceans 15: halt biodiversity loss 16: promote safe societies 17: revitalise global partnership  
   3. UN Global Compact

      Annotations:

      • UN Global Compact:  1: protection of human rights 2: not complicit in abuses 7: precautionary approach to environmental challenges 8: initiatives to promote responsibility 9: encourage the development of friendly technologies
   4. HSEC

      Annotations:

      • Chair: Peter Coates https://www.youtube.com/watch?v=yrDEKb52H4E
   5. Figures / Startegy

      Annotations:

      • Carbon prices implemented per the IEA new policy scenario (NPS) and range from US$10 to US$40 per tonne CO2e by 2030, rising to a range of US$20 to US$50 by 2040 per tonne CO2e.
      • New Policies Scenario but with implementation being uncoordinated and haphazard in nature with outcomes reflective of 5-10 year delays to full and timely implementation
      • 450ppm Scenario (consistent with achieving 2°C climate change goal)
      • 50% reduction of Group LTIFR by the end of 2020, 
      • 50% reduction in TRIFR by 2020 
      • 5% (minimum) carbon emission intensity reduction 
      • High water risk assets to implement five-year water targets for 2017–21.
      • High potential risk incidents (HPRIs) 2017: 368
      • In 2017, we received 19 water-related complaints at 11 of our assets (2016: 73 complaints at 10 sites). 
      • Over the past five years, our coal business has achieved a 72% reduction in community complaints since 2013 and a 33% reduction during 2017. 
      • Our Group monitoring system tracks emerging regulations and determines the degree of risk or impact they are likely to have on our business. We have consolidated this analysis into our product stewardship scorecard that covers new regulations and/or product guidance.
      • In 2017, we recorded three confirmed cases of Mine Lung Dust Disease (MLDD). 
7. Trends

   Annotations:

   • http://www.glencore.com/index/investors/reports-results/2017-annual-report
   • Agriculture > Mining:  https://www.ft.com/content/791ec060-9b2b-11e8-ab77-f854c65a4465
   • Batteries: https://www.reuters.com/article/us-glencore-demand/electric-charge-glencore-bets-big-on-car-battery-metals-idUSKBN1DZ23H
   • Copper needed: https://www.bloomberg.com/news/articles/2018-07-16/the-world-s-biggest-miners-want-more-copper-but-nobody-s-selling
8. Technology

   Annotations:

   • http://www.glencoretechnology.com/en/Pages/home.aspx "Glencore Technology develops, markets and supports technology and solutions for the global mineral processing and metals smelting and refining industries"