Hunter Business Chamber Luncheon

Transcription

1 Hunter Business Chamber Luncheon 7 October 2015

2 Glencore business model An integrated global producer and marketer of bulk commodities One of the world s largest global diversified natural resources companies Producer and marketer of more than 90 commodities We employ 181,000 people across more than 150 mining and metallurgical sites, oil production assets and agricultural facilities We serve customers in industries that include power generation, steel making, automotive, oil and food processing. We also provide financing, logistics and other services to commodity producers and consumers 2

3 Our business is a global network that spans entire commodity supply chains 3

4 Glencore business model underpinned by positive cash flow and substantial liquidity US$10.5Bn Available Liquidity* US$2.5Bn Capital Raising US$10.2Bn Debt Reduction Plan Glencore has taken proactive steps to position our company to withstand current commodity market conditions Operationally and financially robust with positive cash flow and substantial liquidity Delivering a suite of measures to reduce our debt levels by more than US$10 billion Focused on running efficient, low cost and safe operations Confident in the medium and long-term fundamentals of the commodities we produce and market * As at 30 June

5 Last year we contributed over $13 billion to the Australian economy from across coal, copper, zinc, nickel and agriculture businesses 5

6 Coal FAST FACTS 13 major mining complexes Production of 98Mt in 2014 Own and manage our own rail fleet of trains Strong safety performance Safecoal template for global business Demonstrated co-existence with other industry sectors 75% of coal s total managed land in Australia used for agricultural purposes Proactive supporting RD&D for low emission technologies 6

7 We ve operated in Australia for more than 15 years 7

8 COAL GLOBAL ENERGY MIX Role of Coal 8

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11 Glencore approach to co-existence Engage - Listen - Respond Bulga Life Extension Coal Project (NSW) We engaged with > 400 stakeholders from the local community and the region We made a number of major changes to minimise impacts: Changed the mining direction Avoided relocating a local road Avoided disturbing sensitive ecological woodland (Warkworth Sands) Decided to construct a purpose-built bund or man-made hill around the operations to lower noise impacts 11

12 Operating a responsible and sustainable business in Australia 12

13 Glendell Mine- Upper Hunter Valley NSW Rehabilitation of former Hebden & Ravensworth East mine 13

14 Mt Owen mine progressive rehabilitation 14

15 Rehabilitation at Bulga 15

16 Under all credible scenarios coal remains significant part of the growing global energy mix and coal volumes grow 100% Total Primary Energy Demand Mt Seaborne Thermal Coal Demand Current Policy 90% 1400 New Policy 80% 70% Renewables Bioenergy % Hydro % Nuclear % Gas % 20% Oil Coal % 200 0% New Policy 2030 Current Policy Source: World Energy Outlook 2014; Mtoe coal consumption converted using 2012 implied coal energy of 4920kcl/kg nar 16

17 Carbon is part of the political, social and regulatory landscape that needs to be balanced with the global energy reality Acknowledge the energy reality It s not about whether coal will be used, it s about how coal will be used Balance environmental and economic drivers Adopt a least cost approach to reducing emissions Prioritise investment in high efficiency low emission technology for fossil fuels Mt 2,000 1,500 1, Thermal coal demand Sth E. Asia India 0 Notes: (1) Source IEA 17

18 Glencore is proud to be part of the coal mining tradition in the Hunter Our investment creates jobs, enterprise opportunities and support for local businesses and the wider community Be proud of your industry it continues to make a major contribution to this city, the Hunter Region, the State of NSW and Australia 18

19 Thank You