Glencore PLC Update on COVID-19 (7527H)

TIDMGLEN

RNS Number : 7527H

Glencore PLC

26 March 2020

Glencore plc

Baar, Switzerland

26 March 2020

Update on COVID-19

Glencore would like to provide an update relating to the impact of COVID-19 on its operations. Various governments have imposed far-reaching restrictions to daily life and economic activity, and we have been engaging with the relevant authorities, unions and other stakeholders to understand the impact of these measures on our operations.

We have introduced a number of precautionary measures across our offices and industrial assets in response to COVID-19. This includes the implementation of enhanced hygiene and cleaning measures, application of social distancing and identification of higher risk groups. O ur goal is to operate only when we can keep our people safe and healthy, while safeguarding jobs and providing support to our local communities.

To date, our larger operations have not been materially impacted, however a number of our smaller assets have had to restrict or stop operations.

Canada

The government of Quebec has ordered all non-essential businesses to close in an attempt to slow the spread of COVID-19. Accordingly, our Raglan (nickel) and Matagami (zinc) operations in Quebec will be on care and maintenance for the next three weeks. In Ontario, the government has issued a similar decree, but mining has been designated an essential business and therefore our assets can continue to operate.

Chad

Due to the disruptions to international mobility, transportation and supply chains, Glencore's wholly owned subsidiary, PetroChad (Mangara) Limited ("PCM") has taken steps to commence ceasing production at its Badila and Mangara oil fields. The facilities at the fields will be secured and remain on care and maintenance while PCM monitors the situation. The transition to care and maintenance is expected to complete towards the end of April.

Colombia

In Colombia, the President imposed a 19-day quarantine for the country from 25 March. Although the Presidential decree has exempted mining, growing community tensions and restrictions on logistics have made it very difficult to ensure the continued and safe operation of Prodeco (coal) and the security of its host communities. Accordingly, Prodeco has transitioned to care and maintenance. The port will continue to operate.

South Africa

The South African government has announced a nationwide lockdown for 21 days from 26 March. We have been engaging with the authorities to understand the impact of the lock-down on our operations. In accordance with the guidance received from the authorities:

- Our ferroalloys operations in South Africa will transition to care and maintenance with effect from 26 March;

- The majority of our South African coal operations supply Eskom under a variety of contracts. During the nationwide lockdown, we will continue to supply coal to Eskom under the guidelines issued by the Department of Mineral Resources. Any export of coal will need to be approved by the Department of Mineral Resources. With effect from midnight tonight, the Middleburg and Graspan coal operations will be on care and maintenance, supported by skeleton crews to maintain essential services.

Supporting our workforce and local communities

The health and wellbeing of our people, their families and the broader community remains our number one priority. For all our offices and industrial assets that are continuing to operate, we have implemented various additional precautionary measures to protect our employees. We recognise the uncertainty caused by the current environment and endeavour to support our workforce and local communities, as appropriate.

The situation is evolving rapidly and we will continue to provide updates as appropriate. We thank our employees, contractors, customers, suppliers, communities and other stakeholders for their support during this challenging time. Glencore is committed to working with all its stakeholders in helping overcome the unprecedented challenges presented by this pandemic.

For further information please contact:

 
 Investors 
 Martin Fewings      t: +41 41    m: +41 79 737   [e-mail] 
                      709 2880     5642 
 Maartje Collignon   t: +41 41    m: +41 79 197   [e-mail] 
                      709 3269     4202 
 Media 
 Charles Watenphul   t: +41 41    m: +41 79 904   [e-mail] 
                      709 24 62    33 20 
 

www.glencore.com

Glencore LEI: 2138002658CPO9NBH955

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. The Group's operations comprise around 150 mining and metallurgical sites and oil production assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by its global marketing network.

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's companies employ around 160,000 people, including contractors.

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.

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Disclaimer

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.

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March 26, 2020 10:19 ET (14:19 GMT)