The resulting net debt balance will be subject to targeted management to reduce to levels back within the target cap. Established in 2019, the ECC is responsible in particular for monitoring that the Group’s risk culture is appropriately promoted, lived and linked to the Group’s purpose, values and strategy. Two of these galleries caved in, resulting in thirty fatalities. At present, we project a c. 30% reduction in Scope 3 emissions by 2035. Full year 2020 production guidance, consistent with that presented in the investor update on 3 December 2019, is set out on page 17. Risk appetite - Medium. Certain investors may also be familiar with the risk factors that are published in the Group debt or equity prospectuses or listing documents. Nevertheless, some of our existing industrial and marketing activities are located in countries that are categorised as developing or as having complex political or social climates, and/or where corruption is generally understood to exist, and therefore there will always be residual risk in relation to our compliance with laws and external requirements. Any adverse economic developments, particularly impacting China and fast growing developing countries, could lead to reductions in demand for, and consequently price reductions of, commodities. Geopolitical, permits and licences to operate. Local health services might be in the early stages of development, or local authorities may not have the resources to cope with the scale of need. April 17, 2019. At the other end of the cycle, Mutanda was placed on temporary care and maintenance to preserve its copper and cobalt resources while a long-term processing solution for its copper sulphides is developed. We are continuing to invest in a range of emission reduction projects. 6. Our Cyber Defence Centre is responsible for day-to-day monitoring of cyber vulnerabilities across the world and driving remediation of threats. However, there can be no assurance that such policies, standards, procedures and controls will adequately protect the Group against fraud, corruption, sanctions breaches or other unlawful activities. Home; Investors; Reports and publications; Reports & publications. ZUG, SWITZERLAND, April 17, 2019 – Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces the resignation of Mr. Danny Callow as Chief Executive Officer of the Company.. Adjusted EBITDA declined 32% to $5.6 billion. The Group transacts business in locations where it is exposed to a risk of overt or effective expropriation or nationalisation. Through the reporting function within the programme, our Board and senior management receive regular updates and have a detailed oversight on how our business is performing across all of the sustainability indicators. A depreciation in the value of the US dollar against one or more of these currencies will result in an increase in the cost base of the relevant operations in US dollar terms. Risk description and potential impact - Liquidity risk is the risk that we are unable to meet our payment obligations when due, or are unable, on an ongoing basis, to borrow funds in the market at an acceptable price to fund our commitments. This attraction and retention of highly qualified and skilled personnel can be challenging, especially, but not only, in locations experiencing political or civil unrest, or in which employees may be exposed to other hazardous conditions. Environmental Social and Governance (ESG), {{labelSearchNav.label_load_more_results}}. Our business involves producing and consuming fossil fuels along with processing minerals, all of which inevitably entails emitting a level of greenhouse gases. 1 Based on constant currency growth The legislation governing the preparation and dissemination of the Company’s financial statements may differ from legislation in other jurisdictions. We publish our production results quarterly and our assessment of reserves and resources based on available drilling and other data sources annually. Environment. and Glencore’s global coal businesses until his retirement in December 2007. Infrastructure availability remains a key risk, though this has been mitigated by certain long-term measures taken. Our principal risks and uncertainties are highly dynamic and our assessment and our responses to them are critical to our future business and prospects. Directors of Glencore India Private Limited are … These incidents were not linked to KCC operations or activities. However, in every case these do not attempt to be an exhaustive list. The Group has an active engagement strategy with the governments, regulators and other stakeholders within the countries in which it operates or intends to operate. Our operations have a significant effect on our workforce, and surrounding communities and on society as a whole. Our sites span seven provinces and we employ around 7,650 people. The financial statements are required by law to be properly prepared in accordance with the Companies (Jersey) Law 1991. International Accounting Standard 1 requires that financial statements present fairly for each financial year the Company’s financial position, financial performance and cash flows. Glencore plc (“Glencore” or the “Company”) has today: The Annual Report will shortly be available for inspection on the National Storage Mechanism: www.morningstar.co.uk/uk/NSM. We disclose our energy and greenhouse gas emissions footprint, including our annual Scope 3 emissions. Visitor induction Visitor induction. We believe the emergence of machine learning and artificial intelligence will increase the volume and sophistication of fraud attempts. In 2019, sales and purchases with associates and joint ventures amounted to $3,727 million (2018: $1,690 million) and $4,923 million (2018: $4,211 million) respectively. It is accessed via the nearby national highway then by paved road to the site. The Group’s Resources and Reserves report for 2019 is also released today and is available on the Glencore website. These include those risks which would threaten the business model, future performance, reputation, solvency or liquidity of the Group, A reference to a note is a note to the 2019 financial statements, A reference to the sustainability report is our 2019 sustainability report to be published in April 2020, a significant increase in commodity prices resulting in suppliers being unwilling to honour their contractual commitments to sell commodities at pre-agreed prices, a significant reduction in commodity prices resulting in customers being unwilling or unable to honour their contractual commitments to purchase commodities at pre-agreed prices, suppliers subject to prepayment may find themselves unable to honour their contractual obligations due to financial distress or other reasons, the imposition of new regulations, and climate change related policies adverse to our interests in fossil fuels by actual or potential investors, customers and banks, potentially impacting Glencore’s reputation, access to capital and financial performance, increased costs for energy and for other resources, which may impact the productivity of our assets and associated costs the imposition of levies related to greenhouse gas emissions, increased costs for monitoring and reporting related to our carbon footprint, reduced demand for our fossil fuel products, impacts on the development or maintenance of our assets due to restrictions in operating permits, licences or similar authorisations, losing of coal assets and consequent loss of investment, Government policy: we take an active and constructive role in public policy development of carbon and energy issues and seek to ensure that there is a balanced debate with regard to the ongoing use of fossil fuels, Lobbying activities: we acknowledge IIGCC Investor Expectations on Corporate Climate Lobbying and recognise the importance of ensuring our membership in relevant trade associations does not undermine our support for the Paris Agreement and the Paris Goals, Energy costs: projected price changes within our operating regions may affect our assets’ operating cost sensitivities. A perception that we are not respecting human rights or generating local sustainable benefits could have a negative impact on our “social licence to operate”, our ability to secure access to new resources and our financial performance. To understand better and plan for the effects of climate change on our business, we have a framework for identifying, understanding, quantifying and, ultimately, managing climate-related challenges and opportunities facing our portfolio: Last year, following engagement with investor signatories of the Climate Action 100+ initiative, we furthered our commitment to a low-carbon economy, amongst others by limiting our coal production broadly to approximately 150 million tonnes. 2019 Trafigura Terms and Conditions for the sales and purchase of physical non-ferrous metals Responsible sourcing As one of the world’s leading traders of metals and minerals, we recognise the potential for adverse social or environmental impacts associated with their extraction, processing and … Their employing company may not be able to satisfactorily renegotiate its collective labour agreements when they expire and may face tougher negotiations or higher wage demands than would be the case for non-unionised labour. In respect of commodity purchase and sale transactions denominated in currencies other than US dollars, the Group’s policy is usually to hedge the specific future commitment through a forward exchange contract. News News; Insights & stories Insights & stories; Social media Social media; Image & video library Image & video library; Subscribe Subscribe; Media contacts Media contacts; RSS feed RSS feed; Updates regarding Covid-19 Updates regarding Covid-19; Updates regarding illegal mining at KCC Updates regarding … Through our sustainability programme, we seek to manage these vital relationships by adhering to the principles of open dialogue and cooperation. The maintenance of positive employee and union relations and engagement, and the ability to attract and retain skilled workers, including senior management, are key to our success. For example, the considerable verification work undertaken and enhanced monitoring of tailings storage facilities is assisting in greater visibility and control of these risks, and we continue to undertake work to improve the safety and stability of these facilities. Glencore will hold its 2020 Annual General Meeting in Zug on 6 May 2020. Mitigating factors - Development and operating risks and hazards are managed through our continuous project status evaluation and reporting processes and ongoing assessment, reporting and communication of the risks that affect our operations along with updates to the risk register. Glencore Agriculture’s Net debt/EBITDA ratio stands at a high 9.3x. Inevitably, every mine will reach a point of depletion where it is no longer economic to operate and must be closed in an orderly fashion. The unrest has resulted in protests and blockades, leading to operational shutdowns and putting our workforce at risk of injury. Additionally, we seek to ensure this risk is … In addition, some of our industrial activities are located in countries where corruption is more commonly seen; and some of our counterparties have in the past, and may in the future, become the targets of economic sanctions. “We’ve been interested in the initiative from the very early days and we’re excited now to join as a full partner,” … Many employees, especially at the Group’s industrial activities, are represented by labour unions under various collective labour agreements. Glencore Agriculture to rebrand to Viterra. Among our most important producer currencies, against the US dollar, the Australian dollar depreciated by 7% (average 2019 versus average 2018), the South African rand by 9%, the Kazakhstan tenge by 11% and the Canadian dollar by 2%. Comments/impacts to the Group - Our diversity, in terms of geographical locations, working conditions, organisational cultures and … The largest of these exposures are to the currencies listed on page 56. Trafigura Locations. Non-performance by suppliers, customers and hedging counterparties may occur and cause losses in a range of situations, such as: Open account risk is taken but this is generally guided by the Group-wide Credit Risk Policy for higher levels of credit risk exposure, with an established threshold for referral of credit decisions by department heads to CFO/CEO, relating to unsecured amounts in excess of $75 million with BBB or lower rated counterparts, which occurs from time to time, in relation to various key strategic relationships. Maintenance and, where possible, reduction of unit costs is regularly reviewed by management. Climate change also creates opportunities for our business. Health and safety. We also continue to be an active member of the Extractive Industries Transparency Initiative (EITI). In April 2019, the Group was informed that the United States Commodity Futures Trading Commission (CFTC) had begun investigating whether Glencore and its subsidiaries may have violated certain provisions of the Commodity Exchange Act and/or CFTC Regulations including through corrupt practices in connection with commodities trading, 2. In particular, many analysts believe that demand for coal will reduce sooner than previously expected due to political pressures, cost reductions for alternatives (renewables and LNG) and possible carbon taxes. The major contributor to the increase in Net debt in 2019, to a level over the $16 billion target cap, was the adoption of the new lease accounting standard on 1 January 2019, which resulted in approximately $1.3 billion of lease liabilities being recognised as at 31 December 2019, which previously would have been accounted for as operating leases. The Group’s credit ratings are currently Baa1 (positive outlook) from Moody’s and BBB+ (stable outlook) from Standard & Poor’s. Our operations around the world can have direct and indirect impacts on the environment. Some investors may not invest in our shares or divest their holdings due to our significant operations in fossil fuels. In addition, we undertook to ensure that our material capital expenditure and investments align with the Paris Goals, and to report publicly on how this is achieved. submitted a copy of the Annual Report to the UK National Storage Mechanism in accordance with LR 9.6.1 R. a description of principal risks and uncertainties; a note on related party transactions; and. Our commitment to complying with or exceeding the health, safety and environmental laws, regulations and best practice guidelines applicable to our operations and products through our sustainability framework. New or improved energy production or technologies can also reduce the demand for some commodities such as coal. Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. The transaction also involves a payment from Orsted to Glencore. Mitigating factors – We take a proactive and strategic approach to our stakeholder and community engagement. Glencore Agriculture Limited acquires port term... Read more 2020/08/19. We support the advancement of the interests of both our host communities and our assets. The European coal market has seen reduced demand affecting our Colombian coal production in particular, also impacted by the low competing gas prices, which resulted in impairments in the year. in reducing the demand for coal or increasing its pricing (via carbon taxes) – see Climate change risk on page 87. FY19 Group underlying EBITA result delivered in line with revised guidance 1 due to the MAX grounding, whilst continuing to invest in our strategic transformation. To view the full report please click: Annual Report 2018 Glencore plc Annual Report 2018. At Antapaccay, we have engaged external human rights experts to undertake an independent human rights review to build an understanding of stakeholder perceptions and concerns about the operation. Both Colombian coal operations were under margin pressure this year due to substantially lower API2 coal prices (a proxy for the European market), but also increased risk around obtaining certain additional mining/environmental licences and related approvals. The development and operating of assets may lead to future upward revisions in estimated costs, delays or other operational difficulties or damage to properties or facilities. We review risk registers and conduct risk assessments at our assets for projected impacts, Stakeholder perceptions: negative perception may result in impacts to permit approvals, divestiture or cost of finance and affect our operating policy environments. We look at risk appetite from the context of severity of the consequences should the risk materialise, factors influencing the risk and the Company’s ability to mitigate it. It provides detailed information on ESG indicators. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRSs. VITERRA … The transaction involves Glencore taking over a number of contracts, including the right to use 3bcm of annual LNG regasification capacity at the Gate terminal in Rotterdam until 2031 as well as a number of LNG supply contracts. Failure to obtain or renew a necessary permit or the occurrence of other disputes could mean that we would be unable to proceed with the development or continued operation of an asset and/or impede our ability to develop new industrial properties. We have implemented a Group compliance programme that includes a range of policies, standards, procedures, guidelines, training and awareness, monitoring and investigations. They also believe that the review period of four years is appropriate having regard to the Group’s business model, strategy, principal risks and uncertainties, and viability. Developments – We have faced community unrest at a number of our operations, most notably in South Africa, largely driven by lack of economic opportunities and poverty. To date, the Norwegian sovereign fund is the only previous large investor that can no longer invest in Glencore shares due to the absolute size of our thermal coal production levels, rather than coal’s relative contribution. Notes for Editors Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. VITERRA UK LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return, officers, charges, business activity. We regret that we recorded 17 fatalities at our operations in 2019 (2018: 13). They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Next statement date 21 March 2021 due by 2 May 2021. All transactions between Glencore and its subsidiaries are eliminated on consolidation along with any unrealised profits and losses between its subsidiaries, associates and joint ventures. Annual Report 2019. For details on reclassi˜ cations please refer to page 32. 1 March 2019 2018 Annual Report of Glencore plc ... Our operations are often sited close to communities with limited healthcare. With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by a global network of more than 30 marketing offices. Katanga Mining announces change in CEO position. We recognise that the increasing convergence of IT and Operational Technology (OT) networks will create new risks and demand additional management time and focus. Covantis initiative announces technology partner - ConsenSys. The suspension or loss of our permits or licences to operate could have a material adverse effect on the Group and could also preclude Glencore from participating in bids and tenders for future business and projects, therefore affecting the Group’s long-term viability. fossil fuels), whereas others might increase (such as copper, cobalt, and nickel for their use in electric vehicles and batteries), taking into consideration the transition to a low carbon economy. We are an active participant in the Extractive Industries Transparency Initiative. In doing so, we engage with local communities to demonstrate our operations’ contribution to socio-economic development and seek to ensure that appropriate measures are taken to prevent or mitigate possible adverse impacts on the community. Discover our business through our interactive reports and publications. 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