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GLENCORE PLC - GLN - Koniambo Nickel to Transition to Care and Maintenance

2024/02/12 11:11:00

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                    GLN - Koniambo Nickel to Transition to Care and Maintenance

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
LEI: 2138002658CPO9NBH955

Baar, Switzerland
12 February 2024

Koniambo Nickel to Transition to Care and
The shareholders of Koniambo Nickel SAS (KNS) – a joint venture between Société Minière
du Sud Pacifique SA (SMSP) and Glencore plc – have made the decision to transition KNS
into care and maintenance.

Glencore will fund the operation according to an agreed budget as it begins an orderly
transition to a state of care and maintenance. The furnaces will remain hot for six months,
and the KNS team will support the critical activities required to maintain the integrity of
the asset and keep the site secure.

Glencore will shortly initiate a process to identify a potential new industrial partner for

All local KNS employees will be retained for a period of six months to aid in the transition.

This decision follows several months of extensive discussions and negotiations with
relevant government and other key stakeholders. Even with the French government's
proposed assistance, high operating costs and current very weak nickel market
conditions means KNS remains an unprofitable operation.

Glencore has been a responsible custodian of KNS since acquiring the operation as part
of the Xstrata transaction in 2013. More than US$4 billion has been funded by Glencore
since 2013, and a total of US$9 billion since project inception. For over ten years, Glencore
has been the primary funder of KNS without ever realising a profit. KNS has contributed
c.US$5.6 billion in economic benefits to New Caledonia since 2012 from construction
(US$1.7 billion) and operations (US$3.9 billion), including US$3.0 billion spent on goods and
services and the payment of US$950 million in local salaries.

Glencore is appreciative of the French government's efforts to revitalize and rescue the
nickel industry in New Caledonia, however, even with the proposed assistance, KNS
remains an unsustainable operation and Glencore cannot justify continuing to fund losses
to the detriment of its shareholders.

For further information please contact:
 Martin Fewings               t: +41 41 709 28 80        m: +41 79 737 56 42       martin.fewings@glencore.com

 Charles Watenphul            t: +41 41 709 24 62        m: +41 79 904 33 20       charles.watenphul@glencore.com


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 commodities that advance everyday life. Through a network of assets, customers
and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the
commodities that support decarbonisation while meeting the energy needs of today.

With around 140,000 employees and contractors and a strong footprint in over 35 countries in both
established and emerging regions for natural resources, our marketing and industrial activities are supported
by a global network of more than 40 offices.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers
and consumers of commodities.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.

We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris Agreement
by decarbonising our own operational footprint. We believe that we should take a holistic approach and have
considered our commitment through the lens of our global industrial emissions. Against a 2019 baseline, we
are committed to reducing our Scope 1, 2 and 3 industrial emissions by 15% by the end of 2026, 50% by the
end of 2035 and we have an ambition to achieve net zero industrial emissions by the end of 2050. For more
detail see our 2022 Climate Report on the publication page of our website at glencore.com/publications.

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Important Information

This document contains statements that are, or may be deemed to be, 'forward-looking statements' which are prospective
in nature. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements to differ materially from any future event, results,
performance, achievements or other outcomes expressed or implied by such forward-looking statements. Except as
required by law, Glencore is not under any obligation, and Glencore and its affiliates expressly disclaim any intention,
obligation or undertaking, to update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise. For further information, including important factors that could impact these uncertainties see
Glencore's latest Annual Report on the publication page of our website at glencore.com/publications.

The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this
document, 'Glencore', 'Glencore group' and 'Group' are used for convenience only where references are made to Glencore
plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any
other relationship between the companies. Likewise, the words 'we', 'us' and 'our' are also used to refer collectively to
members of the Group or to those who work for them. These expressions are also used where no useful purpose is served
by identifying the particular company or companies.

Absa Corporate and Investment Bank, a division of Absa Bank Limited

Date: 12-02-2024 11:11:00
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