Production Report for the 12 months ended 31.12.12

NEWS RELEASE

 

Baar, 12 February 2013

 

Production Report for the 12 months ended 31 December 2012

 

 

Key Highlights

 

•       Industrial growth projects continue to deliver overall volume improvement.

 

•       Kazzinc own gold production up 22% with recovery rates continuing to improve; successful ramp-up of new copper smelter resulting in increased copper cathode production.

 

•       Katanga copper metal up 2%, with cathode production up 7%, in spite of significant disruption from power shortage. New power converter and synchronous condenser commissioned in December 2012. Agreement with SNEL to provide better reliability and availability of electricity supply in the medium to long term.

 

•       Mutanda copper produced up 37%. Following completion of the cobalt plant, Mutanda now has capacity in place to produce up to 110,000 tonnes of copper and 23,000 tonnes of cobalt.

 

•       Murrin Murrin own sourced production was 33,400 tonnes of nickel, a record production year.

 

•       Prodeco own production up 1% despite the three month strike at La Jagua. The expansion plan remains on track to produce annualised 20 million tonnes by 2014.

 

•       Significant growth in South African coal production following the acquisitions of Optimum and Umcebo.

 

•       Aseng oil field ahead of schedule producing 61.7k bbls/day, with Alen field on schedule to start producing in Q3 2013.

 

•       Sugarcane processing and oilseed crushing increased by 39% and 38% respectively, following the investment into these activities.

 

•       A proforma of Glencore Xstrata production for 2012 and 2011 can be found from page 9. Investors' attention is drawn to the fact that completion of the merger remains conditional upon the receipt of the outstanding regulatory approval in China, completion of the Xstrata court process and Glencore giving effect to the commitments required by the European Commission.  As indicated in the merger timing update dated 18 January 2013, the long stop date for the merger is now 15 March 2013.

 

For further information please contact:

 

 

 

 

Investors & analysts Paul Smith/Elisa Morniroli t: +41 (0)41 709 24 87/28 18 e: [email protected] e: [email protected]

Media Charles Watenphul t: +41 (0)41 709 24 62 e: [email protected]

Finsbury (Media) Guy Lamming Dorothy Burwell t: +44 (0)20 7251 3801

 

website: www.glencore.com

 

Metals and Minerals

 

 

Production data

 

thousand1		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
Kazzinc
Zinc metal	MT	227.3	74.0	301.3	246.0	54.8	300.8	- 8%
Lead metal ²	MT	26.8	55.7	82.5	35.6	66.2	101.8	- 25%
Copper metal ³	MT	49.6	3.0	52.6	51.2	1.8	53.0	- 3%
Gold	toz	474	87	561	390	39	429	22%
Silver	toz	4 777	15 031	19 808	4 299	5 571	9 870	11%
Katanga
Copper metal ³	MT	93.0	-	93.0	91.2	-	91.2	2%
Cobalt	MT	2.13	-	2.13	2.43	-	2.43	- 12%
Mutanda
Copper metal ³	MT	87.0	-	87.0	63.7	-	63.7	37%
Cobalt 4	MT	8.50	-	8.50	7.87	-	7.87	8%
Mopani
Copper metal ³	MT	99.0	88.1	187.1	101.4	103.0	204.4	- 2%
Cobalt 4	MT	0.07	0.16	0.23	0.56	0.33	0.89	- 88%
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme, Rosh Pinah)
Zinc metal	MT	53.0	81.7	134.7	61.0	92.7	153.7	- 13%
Zinc oxide	DMT	52.5	-	52.5	30.9	-	30.9	70%
Zinc concentrates	DMT	425.0	-	425.0	461.2	-	461.2	- 8%
Lead metal	MT	11.8	-	11.8	11.9	-	11.9	- 1%
Lead concentrates	DMT	67.2	-	67.2	61.0	-	61.0	10%
Tin concentrates	DMT	2.35	-	2.35	4.74	-	4.74	- 50%
Silver metal	toz	783	-	783	754	-	754	4%
Silver in concentrates	toz	7 279	-	7 279	7 978	-	7 978	- 9%
Other Copper (Cobar, Pasar, Punitaqui, Sable)
Copper metal	MT	-	98.4	98.4	-	164.1	164.1	n.m.
Copper concentrates	DMT	179.2	0.1	179.3	204.9	-	204.9	- 13%
Cobalt	MT	-	0.71	0.71	-	0.16	0.16	n.m.
Silver in concentrates	toz	941	-	941	1 035	-	1 035	- 9%
Alumina/Aluminium (Sherwin)
Alumina	MT	-	1 379	1 379	-	1 460	1 460	n.m.
Ferroalloys/Nickel/Cobalt (Glencore Manganese, Murrin Murrin)
Ferro manganese	MT	-	17.34	17.34	-	-	-	n.m.
Silicon manganese	MT	-	15.91	15.91	-	-	-	n.m.
Nickel metal	MT	33.41	3.02	36.43	28.50	1.50	30.00	17%
Cobalt	MT	2.39	0.10	2.49	2.02	0.07	2.09	18%
Total Zinc contained	MT	534.4	155.7	690.1	563.1	147.5	710.6	- 5%
Total Copper contained	MT	376.7	189.6	566.3	362.6	268.9	631.5	4%
Total Lead contained	MT	76.3	55.7	132.0	82.5	66.2	148.7	- 8%
Total Tin contained	MT	1.15	-	1.15	2.23	-	2.23	- 48%
Total Gold (incl. Gold equivalents) 5	toz	731	367	1 098	706	164	870	4%
Total Alumina	MT	-	1 379	1 379	-	1 460	1 460	n.m.
Total Ferro manganese	MT	-	17.34	17.34	-	-	-	n.m.
Total Silicon manganese	MT	-	15.91	15.91	-	-	-	n.m.
Total Nickel	MT	33.41	3.02	36.43	28.50	1.50	30.00	17%
Total Cobalt	MT	13.09	0.97	14.06	12.88	0.56	13.44	2%
1 Controlled industrial assets only (with the exception in 2011 of Mutanda, which was 40% owned). Production is included on a 100% basis. 2 Lead metal includes lead contained in lead concentrates. 3 Copper metal includes copper contained in copper concentrates and blister copper. 4 Cobalt contained in concentrates and hydroxide. 5 Gold/Silver conversion ratios of 1/53.54 and 1/44.53 for 2012 and 2011 respectively based on average prices.

 

Selected average commodity prices

 

		2012	2011	Change
S&P GSCI Industrial Metals Index		382	440	- 13%
LME (cash) zinc price ($/t)		1 948	2 193	- 11%
LME (cash) copper price ($/t)		7 958	8 813	- 10%
LME (cash) lead price ($/t)		2 062	2 397	- 14%
Gold price ($/oz)		1 669	1 573	6%
Metal Bulletin alumina price ($/t)		319	374	- 15%
LME (cash) aluminium price ($/t)		2 022	2 398	- 16%
LME (cash) nickel price ($/t)		17 530	22 843	- 23%
Metal Bulletin cobalt price 99.3% ($/lb)		13	16	- 19%
Iron ore (Platts 62% CFR North China) price ($/DMT)		130	169	- 23%

 

 

 

OPERATIONAL HIGHLIGHTS

 

Kazzinc (Glencore interest: 69.6%, increased from 50.7% on 11 October 2012)

2012 gold production from own sources was 474,000 toz, an increase of 22% compared to 2011. This higher production reflects the continued growth at Altyntau as well as the benefits from gold recovered from the copper smelter. Silver production from own sources was 4.8 million toz, an increase of 11% compared to the prior year, reflecting an increase in the level of own silver-bearing copper concentrates processed. Total silver production also increased significantly during 2012 as a result of processing more high silver content concentrates from third parties.

Copper production from own sources in 2012 was 49,600 tonnes, a reduction of 3% compared to 2011. However, copper cathode production increased by 25,800 tonnes to 47,300 tonnes, following the ramp-up at Kazzinc's new copper smelter which was commissioned in 2011.

2012 lead production from own sources was 26,800 tonnes, a decrease of 25% compared to 2011. This reflects the ramp-up at the new lead smelter which was commissioned in August 2012 and the processing of gold rich concentrates at the old lead smelter prior to its decommissioning.

Zinc production from own sources was 227,300 tonnes, a decrease of 8%, resulting from the expected small reduction in grade during 2012.

 

Katanga (Glencore interest: 75.2%)

Katanga produced 93,000 tonnes of copper in metal and in concentrate from own sources during 2012, a 2% increase compared to 2011. Cobalt production in 2012 was 2,100 tonnes, a 12% decrease compared to 2011.

Production during the year was severely disrupted by the recurrent general power disruptions in the DRC which resulted in 67 days of lost production.

The new power converter (part of the World Bank power project) and new synchronous condenser (under Katanga's agreement with
La Société Naturale d'Electricité ('SNEL'), DRC's national power operator) were commissioned in December 2012 and have subsequently resulted in a decrease in power disruption. Further improvements in the reliability and availability of the electricity supply are expected in the medium term as a result of the joint Power Project (announced in March 2012) currently underway and being undertaken by Katanga, Mutanda and Kansuki in partnership with SNEL.

Katanga produced its first copper cathode from the new solvent extraction plants and converted electro-winning facility during December 2012 as part of the Phase 4 project. The completion of this project will enable Katanga to increase total processing capacity and upgrade the quality of copper produced through the application of modern technologies. The Phase 4 project remains on target for mechanical completion in Q3 2013.

For further information please visit www.katangamining.com

 

 

Mutanda (Glencore interest: 60.0%)

In 2012, Mutanda produced 87,000 tonnes of copper in metal and concentrate from own sources, a 37% increase compared to 2011. 2012 copper cathodes production increased 90% to 83,500 tonnes.

2012 cobalt production was 8,500 tonnes, an 8% increase from 2011. Mutanda continues to increase cobalt production through the use of SO₂ from its sulphuric acid and SO₂ plant. A new power generation plant, dedicated to providing reliable power to the acid and SO₂ plant, was commissioned in December 2012. Following completion of the cobalt circuit in Q4 2012, Mutanda has installed cobalt in hydroxide capacity of 23,000 tonnes per annum.

The feasibility study for the construction of a 100,000 tonnes (of copper contained) sulphide concentrator remains on track to be completed in Q1 2013.

In May 2012, Glencore acquired an additional 20% of Mutanda for a cash consideration of $ 340 million plus acquired shareholder debts of approximately $ 140 million. Glencore also has the right, subject to the terms of a put and call option agreement exercisable in December 2013, to acquire a further 20% in Mutanda for a cash consideration of $ 430 million.

As previously announced, the above transaction was the first step to achieve the merger of Mutanda and Kansuki, which is expected to form a combined entity having an installed capacity of 200,000 tonnes per annum of copper by the end of 2013. It is anticipated that the merger will be completed during H1 2013.

 

Kansuki (Glencore interest: 37.5%)

Glencore holds a 50% interest in Kansuki Investments Sprl which in turn holds a 75% interest in the owner of the Kansuki concession, thereby giving Glencore an effective interest of 37.5%. Kansuki is a 185 square kilometre copper and cobalt pre-development project which borders the Mutanda concession. A total of $ 507 million of capital expenditure for mine and plant development has been committed to, of which $ 413 million had been spent as at 31 December 2012. Exploration of the Kansuki concession is on-going.

 

Katanga, Mutanda and Kansuki - Power Project

Mutanda, Katanga and Kansuki are collectively undertaking a project to secure power for all three operations via the refurbishment of two turbines at the Inga dam. This project is expected to provide 450 megawatts of power by the end of 2015 (the "Power Project"). The project has started and is being executed in partnership with SNEL and EGMF, the project contractor. The estimated cost of $ 284 million will be paid by Mutanda, Katanga and Kansuki. This investment will be recovered via lower future energy tariffs.

 

Mopani (Glencore interest: 73.1%)

Mopani produced 99,000 tonnes of own copper in 2012 and 187,100 tonnes of total copper including third party sourced and toll material, reflecting a 2% and 8% decline respectively compared to 2011.

The reduction in total finished copper production primarily resulted from the planned biennial smelter shutdown. The small reduction in Mopani's own copper production was due to the temporary suspension of the heap leach process earlier in the year.

The $ 323 million Synclinorium shaft project to increase mine production, which is expected to come online during 2015, and the associated project to improve and modernise the smelter remain on track. In 2012, Mopani announced that the smelter upgrade project (including improving SO₂ emission capture to above 97%) is expected to be completed by December 2013, 18 months ahead of the schedule initially agreed with the Zambian authorities.

 

Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Portovesme, Rosh Pinah)

The acquisition of Rosh Pinah (from 1 June 2012) and a strong performance by AR Zinc resulted in higher production of silver metal and lead concentrates in 2012. This was offset by lower production at Los Quenuales and Sinchi Wayra, as a result of the planned shift towards lower grade ore bodies, union issues at Los Quenuales and the nationalisation of the Colquiri mine at Sinchi Wayra.

The nationalisation of the Colquiri mine resulted in no tin being produced post June 2012.

Los Quenuales recently received community approval to develop a new ore area at Iscaycruz (Santa Este), which has estimated ore resources of five to seven million tonnes. The mine is expected to be operational in Q4 2013 and will reach an annual production of 20,000 tonnes of zinc contained in concentrates in 2014.

 

Other Copper (Cobar, Pasar, Punitaqui, Sable)

Metal production in 2012 was 40% lower than in 2011, due to a fire at Pasar that stopped production for approximately six months. Since the restart in July 2012, production has been in line or above those levels achieved during 2011.

 

2012 copper concentrate and silver contained in concentrate production were lower than 2011 levels by 13% and 9% respectively, primarily due to temporary operational issues at Cobar resulting from electrical failures and delays in underground development activities.

Completion of the new mine shaft at Cobar has been delayed due to poor ground conditions and is now expected in 2015.

 

Alumina/Aluminium

Sherwin Alumina (Glencore interest: 100%)

2012 production was 1.4 million tonnes, a 6% reduction compared to 2011. This reduction primarily relates to the overhaul of the calciner which was completed in Q1 2012. Production since then has been as expected.

 

Ferroalloys/Nickel/Cobalt

Glencore Manganese (Glencore interest: 100%)

Glencore acquired 100% of Vale's European manganese ferroalloys operations on 1 November 2012. The operations, located in Dunkirk, France and Mo I Rana, Norway, currently have the capacity to produce 150,000 tonnes and 110,000 tonnes of manganese ferroalloys per annum respectively.

 

Murrin Murrin (Glencore interest: 100%)

Own sourced production in 2012 was 33,400 tonnes of nickel and 2,400 tonnes of cobalt, an increase of 17% and 18% respectively compared to 2011, reflecting a record year of production for Murrin Murrin based on best ever throughput levels and plant availability.

Murrin Murrin has also successfully contained costs as part of its on-going 'Margin Improvement Plan' (in response to the lower nickel price and high Australian dollar environment) with further cost savings targeted in 2013.

 

 

 

 

 

Energy Products

 

 

Production data

 

thousand MT 1	Own	Buy-in Coal	2012 Total	Own	Buy-in Coal	2011 Total	Own production change
Thermal coal
Prodeco	14 762	142	14 904	14 586	195	14 781	1%
Shanduka (Export)	440	-	440	498	-	498	- 12%
Shanduka (Domestic)	6 017	1 084	7 101	5 422	802	6 224	11%
Umcebo (Export)	205	-	205	-	-	-	n.m.
Umcebo (Domestic)	6 798	31	6 829	-	-	-	n.m.
Optimum (Export)	7 347	-	7 347	-	-	-	n.m.
Optimum (Domestic)	6 266	495	6 761	-	-	-	n.m.
Total	41 835	1 752	43 587	20 506	997	21 503	104%
1 Controlled industrial assets only. Production on a 100% basis.

 

 

 

thousand bbls	2012 Total	2011 Total	Change
Oil 1
Block I	22 570	2 785	710%
Total	22 570	2 785	710%
1 On a 100% basis. Glencore's ownership interest in the Aseng field is 23.75%.

 

 

Selected average commodity prices

 

				2012	2011	Change
S&P GSCI Energy Index				330	333	- 1%
Coal API2 ($/t)				93	122	- 24%
Coal API4 ($/t)				93	116	- 20%
Prodeco realised price ($/t) 1				85	95	- 11%
South African Coal average realised export price ($/t)				90	108	- 17%
South African Coal average realised domestic price ($/t)				31	43	- 28%
Oil price - Brent ($/bbl)				112	111	1%
1 As of 31 December 2012, 24 million tonnes had been sold forward at an average price of $ 89 per tonne.

 

 

 

 

 

 

OPERATIONAL HIGHLIGHTS

 

Prodeco (Glencore interest: 100%)

Own production for 2012 was 14.8 million tonnes, up 1% on 2011. The significant growth at Calenturitas was offset by lower production at the La Jagua mine, due to a three month strike that concluded in October 2012.

Prodeco's expansion project is progressing to plan, excluding the short term impact of the La Jagua strike, and remains on track to deliver annualised production of 20 million tonnes by 2014.

The construction of the new direct loading port, Puerto Nuevo, is also on track and to budget, with commissioning expected in H1 2013. Puerto Nuevo will provide substantially higher annual throughput capacity with a lower operating cost per tonne.

 

South African Coal (Glencore interest: Shanduka Coal: 49.99%, Umcebo Mining: 43.66% and Optimum Coal: 67.01%)

2012 own production was 27.1 million tonnes, reflecting a significant increase compared to 2011. This increase largely resulted from the consolidation of production from Optimum and Umcebo from 1 January 2012.

South African Coal is currently focused on a number of expansion and development projects which are progressing well. At
Umcebo, the Wonderfontein project started production and railed its first coal during December 2012. At Shanduka and Umcebo, the definitive feasibility studies relating to the Springboklaagte and Argent projects remain on track to be completed in April 2013. At Optimum, construction has started at the Pullenshope underground brownfield project with first coal expected in Q2 2013, while licensing for the Koornfontein project has been delayed slightly to Q1 2013, with construction expected to start in Q2 2013. In addition, South African Coal, along with the other shareholders, has recently taken an active role in the management of the Kusipongo project at Kangra Coal (30% owned by Shanduka Coal).

 

Oil Exploration & Production (Glencore interest: Block I: 23.75%/Block O: 25.0%)

The Aseng field (Block I) in Equatorial Guinea has continued to perform well during 2012, producing 22.57 million barrels of
cumulative gross production at an average gross rate of approximately 61,700 barrels per day.

Development of the Alen field (Block O) in Equatorial Guinea remains on budget with first production scheduled for Q3 2013. All of the development wells have been drilled and completed and construction of the production platform continues as planned.

Glencore's first operated exploration well on the Oak prospect in the Bolongo Block, offshore Cameroon, was successfully drilled and declared an oil discovery in July 2012. The appraisal programme is planned for H2 2013.

 

 

Agricultural Products

 

 

Production data

 

thousand MT	2012 Total	2011 Total	Change
Farming	674	827	- 19%
Oilseed crushing	2 779	2 008	38%
Oilseed crushing long term toll agreement	876	948	- 8%
Biodiesel	534	569	- 6%
Rice milling	248	304	- 18%
Wheat milling	1 061	1 001	6%
Sugarcane processing	1 256	906	39%
Total	7 428	6 563	13%

 

 

Selected average commodity prices

 

				2012	2011	Change
S&P GSCI Agriculture Index				459	490	- 6%
CBOT corn no.2 price (US¢/bu)				695	680	2%
ICE cotton price (US¢/lb)				80	137	- 42%
CBOT soya beans (US¢/bu)				1 466	1 317	11%
NYMEX sugar # 11 price (US¢/lb)				22	27	- 19%
CBOT wheat price (US¢/bu)				751	709	6%

 

 

 

OPERATIONAL HIGHLIGHTS

 

Viterra (Glencore interest: 100%)

On 17 December 2012, Glencore completed the acquisition of Viterra, bringing immediate critical mass in the key grain markets of North America, via Viterra's Canadian operations, as well as materially expanding Glencore's existing operations in Australia.

 

Rio Vermelho (Glencore interest: 100%)

1.3 million tonnes of sugarcane were crushed in 2012, a 39% increase compared to 2011, which in turn produced 108,400 tonnes of Very High Pol ('VHP') sugar and 34,000 cubic metres of hydrous ethanol. The on-going expansion plan at Rio Vermelho continues to progress on schedule. The first phase of the cogeneration plant, eventually capable of supplying 200,000 megawatt hours of surplus electricity to the power grid at maturity of the project in 2015, will become operational during H2 2013.

 

Other Agricultural Products

Oilseed crushing

In 2012, oilseed crushing volumes increased 38%, reflecting the additional volumes crushed at the three acquired plants (Czech Republic, Poland and Ukraine) and the completion of the new plant constructed in Hungary.

Following the successful commissioning of Timbues (Argentina) in October 2012, the plant commenced crushing in December 2012.

 

 

 

Glencore Xstrata Proforma

 

Investors' attention is drawn to the fact that completion of the merger remains conditional upon the receipt of the outstanding regulatory approval in China, completion of the Xstrata court process, and Glencore giving effect to the commitments required by the European Commission. As indicated in the merger timing update dated 18 January 2013, the long stop date for the merger is now 15 March 2013.

 

METALS AND MINERALS - total

 

Pro forma production data

 

thousand ¹		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
Total Zinc contained	MT	1 589.9	894.8	2 484.7	1 609.1	885.1	2 494.2	- 1%
Total Copper contained	MT	1 202.5	786.2	1 988.7	1 325.9	943.7	2 269.6	- 9%
Total Lead contained	MT	320.6	288.0	608.6	308.4	272.8	581.2	4%
Total Tin contained	MT	1.1	-	1.1	2.2	-	2.2	- 50%
Total Gold (incl. Gold equivalents)2	toz	1 559	753	2 312	1 700	610	2 310	- 8%
Total Alumina	MT	-	1 379	1 379	-	1 460	1 460	n.m.
Total Ferro manganese	MT	-	17.3	17.3	-	-	-	n.m.
Total Silicon manganese	MT	-	15.9	15.9	-	-	-	n.m.
Total Nickel contained	MT	109.3	100.9	210.2	106.1	96.8	202.9	3%
Total Cobalt	MT	14.3	4.2	18.5	14.2	3.8	18.0	1%
Total Ferrochrome	MT	938	-	938	1 021	-	1 021	- 8%
Total Platinum	toz	80	-	80	92	-	92	- 13%

 

 

 

COPPER ASSETS

 

thousand ¹		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
African copper (Katanga, Mutanda, Mopani, Sable)
Katanga
Copper metal3	MT	93.0	-	93.0	91.2	-	91.2	2%
Cobalt	MT	2.1	-	2.1	2.4	-	2.4	- 13%
Mutanda
Copper metal3	MT	87.0	-	87.0	63.7	-	63.7	37%
Cobalt4	MT	8.5	-	8.5	7.9	-	7.9	8%
Mopani
Copper metal3	MT	99.0	88.1	187.1	101.4	103.0	204.4	- 2%
Cobalt4	MT	0.1	0.2	0.3	0.6	0.3	0.9	- 83%
Other
Copper metal	MT	-	8.8	8.8	-	2.0	2.0	n.m.
Cobalt4	MT	-	0.7	0.7	-	0.2	0.2	n.m.
Total Copper metal3	MT	279.0	96.9	375.9	256.3	105.0	361.3	9%
Total Cobalt4	MT	10.7	0.9	11.6	10.9	0.5	11.4	- 2%
Collahuasi (Chile)5
Copper metal	MT	16.2	-	16.2	15.8	-	15.8	3%
Copper in concentrates	MT	107.9	-	107.9	183.6	-	183.6	- 41%
Silver in concentrates	toz	1 334	-	1 334	1 786	-	1 786	- 25%
Antamina (Peru)6
Copper in concentrates	MT	150.8	-	150.8	112.6	-	112.6	34%
Silver in concentrates	toz	4 203	-	4 203	3 646	-	3 646	15%
Other South America (Alumbrera, Lomas Bayas, Altonorte, Tintaya, Antapaccay, Punitaqui)
Alumbrera (Argentina)
Copper in concentrates	MT	135.7	-	135.7	116.7	-	116.7	16%
Gold in concentrates and in doré	toz	364	-	364	356	-	356	2%
Silver in concentrates and in doré	toz	1 487	-	1 487	1 015	-	1 015	47%
Lomas Bayas (Chile)
Copper metal	MT	73.3	-	73.3	73.6	-	73.6	-
Altonorte (Chile)
Copper anode7	MT	-	270.2	270.2	-	311.0	311.0	n.m.
Tintaya/Antapaccay (Peru)
Copper metal	MT	8.8	-	8.8	21.0	-	21.0	- 58%
Copper in concentrates	MT	43.0	-	43.0	74.3	-	74.3	- 42%
Gold in concentrates	toz	17	-	17	33	-	33	- 48%
Silver in concentrates	toz	501	-	501	870	-	870	- 42%
Other
Copper metal	MT	11.9	-	11.9	9.7	-	9.7	23%
Silver in concentrates	toz	179	-	179	210	-	210	- 15%
Total Copper metal	MT	82.1	-	82.1	94.6	-	94.6	- 13%
Total Copper anode7	MT	-	157.2	157.2	-	244.2	244.2	n.m.
Total Copper in concentrates	MT	190.6	-	190.6	200.7	-	200.7	- 5%
Total Gold in concentrates and in doré	toz	381	-	381	389	-	389	- 2%
Total Silver in concentrates and in doré	toz	2 167	-	2 167	2 095	-	2 095	3%
Australia and Asia (Ernest Henry, Mount Isa, Cobar, Pasar)
Ernest Henry
Copper in concentrates	MT	34.1	-	34.1	100.3	-	100.3	- 66%
Gold in concentrates	toz	40	-	40	129	-	129	- 69%
Silver in concentrates	toz	194	-	194	449	-	449	- 57%
Mount Isa
Copper metal	MT	136.3	130.5	266.8	148.8	127.8	276.6	- 8%
Copper in concentrates	MT	6.4	-	6.4	-	-	-	n.m.
Silver in concentrates	toz	724	-	724	726	-	726	-
Other
Copper metal	MT	-	89.6	89.6	-	162.2	162.2	n.m.
Copper in concentrates	MT	34.5	-	34.5	44.7	-	44.7	- 23%
Silver in concentrates	toz	360	-	360	409	-	409	- 12%
Total Copper metal	MT	136.3	220.1	356.4	148.8	290.0	438.8	- 8%
Total Copper in concentrates	MT	75.0	-	75.0	145.0	-	145.0	- 48%
Total Gold in concentrates	toz	40	-	40	129	-	129	- 69%
Total Silver in concentrates	toz	1 278	-	1 278	1 584	-	1 584	- 19%
North America (CCR, Horne, Kidd)
CCR/Horne
Copper metal	MT	-	265.5	265.5	-	264.0	264.0	n.m.
Kidd
Copper in concentrates	MT	34.4	-	34.4	42.3	-	42.3	- 19%
Zinc in concentrates	MT	78.1	-	78.1	71.5	-	71.5	9%
Silver in concentrates	toz	2 877	-	2 877	2 602	-	2 602	11%
Total Copper metal	MT	-	265.5	265.5	-	264.0	264.0	n.m.
Total Copper in concentrates	MT	34.4	-	34.4	42.3	-	42.3	- 19%
Total Zinc in concentrates	MT	78.1	-	78.1	71.5	-	71.5	9%
Total Silver in concentrates	toz	2 877	-	2 877	2 602	-	2 602	11%

 

 

 

ZINC ASSETS

 

thousand ¹		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
Kazzinc (Kazakhstan)
Zinc metal	MT	227.3	74.0	301.3	246.0	54.8	300.8	- 8%
Lead metal	MT	26.8	55.7	82.5	35.6	66.2	101.8	- 25%
Copper metal	MT	49.6	3.0	52.6	51.2	1.8	53.0	- 3%
Gold	toz	474	87	561	390	39	429	22%
Silver	toz	4 777	15 031	19 808	4 299	5 571	9 870	11%
Australia (Mount Isa, McArthur River)
Mount Isa
Zinc in concentrates	MT	390.4	-	390.4	357.0	-	357.0	9%
Lead in concentrates	MT	153.1	-	153.1	130.7	-	130.7	17%
Silver in lead bullion	toz	5 927	951	6 878	5 516	1 029	6 545	7%
McArthur River
Zinc in concentrates	MT	202.1	-	202.1	194.1	-	194.1	4%
Lead in concentrates	MT	40.4	-	40.4	38.3	-	38.3	5%
Silver in concentrates	toz	1 820	-	1 820	1 594	-	1 594	14%
Total Zinc in concentrates	MT	592.5	-	592.5	551.1	-	551.1	8%
Total Lead in concentrates	MT	193.5	-	193.5	169.0	-	169.0	14%
Total Silver in lead bullion	toz	5 927	951	6 878	5 516	1 029	6 545	7%
Total Silver in concentrates	toz	1 820	-	1 820	1 594	-	1 594	14%
Europe (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
Total Zinc metal	MT	22.2	736.8	759.0	30.6	744.9	775.5	- 27%
Total Zinc in oxide	MT	35.9	-	35.9	21.2	-	21.2	69%
Total Lead metal	MT	-	156.9	156.9	-	130.1	130.1	n.m.
Total Silver	toz	-	7 249	7 249	-	5 381	5 381	n.m.
North America (Brunswick, CEZ Refinery, Perseverance)
Brunswick mine
Zinc in concentrates	MT	185.7	4.7	190.4	209.0	-	209.0	- 11%
Lead in concentrates	MT	50.9	0.9	51.8	56.8	-	56.8	- 10%
Copper in concentrates	MT	7.8	0.3	8.1	8.8	-	8.8	- 11%
Silver in concentrates	toz	2 689	62	2 751	2 980	-	2 980	- 10%
Brunswick Smelting
Lead metal	MT	-	74.5	74.5	-	76.5	76.5	n.m.
Silver	toz	-	12 359	12 359	-	13 434	13 434	n.m.
CEZ Refinery8
Zinc metal	MT	-	72.6	72.6	-	72.4	72.4	n.m.
Perseverance mine
Zinc in concentrates	MT	125.2	-	125.2	135.0	-	135.0	- 7%
Copper in concentrates	MT	10.9	-	10.9	9.8	-	9.8	11%
Total Zinc metal	MT	-	72.6	72.6	-	72.4	72.4	n.m.
Total Zinc in concentrates	MT	310.9	4.7	315.6	344.0	-	344.0	- 10%
Total Lead metal	MT	-	74.5	74.5	-	76.5	76.5	n.m.
Total Lead in concentrates	MT	50.9	0.9	51.8	56.8	-	56.8	- 10%
Total Copper in concentrates	MT	18.7	0.3	19.0	18.6	-	18.6	1%
Total Silver	toz	2 689	12 421	15 110	2 980	13 434	16 414	- 10%
Antamina (Peru)6
Zinc in concentrates	MT	73.9	-	73.9	79.4	-	79.4	- 7%
Other Zinc (Los Quenuales, Sinchi Wayra, AR Zinc, Rosh Pinah)
Zinc metal	MT	30.8	6.7	37.5	30.5	13.0	43.5	1%
Zinc in concentrates	MT	218.3	-	218.3	234.8	-	234.8	- 7%
Lead metal	MT	11.8	-	11.8	11.9	-	11.9	- 1%
Lead in concentrates	MT	37.6	-	37.6	35.1	-	35.1	7%
Copper in concentrates	MT	1.7	-	1.7	0.8	-	0.8	113%
Silver metal	toz	783	-	783	754	-	754	4%
Silver in concentrates	toz	7 681	-	7 681	8 394	-	8 394	- 8%
Tin in concentrates	MT	1.1	-	1.1	2.2	-	2.2	- 50%

 

 

 

 

NICKEL ASSETS

 

thousand ¹		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
Integrated Nickel Operations (Sudbury, Raglan, Nikkelverk)
Sudbury - Mine/mill
Nickel in concentrates	MT	20.4	6.2	26.6	19.8	2.9	22.7	3%
Copper in concentrates	MT	52.5	5.3	57.8	47.5	2.4	49.9	11%
Cobalt in concentrates	MT	0.3	0.2	0.5	0.3	0.1	0.4	-
Raglan
Nickel in concentrates	MT	28.6	-	28.6	27.3	-	27.3	5%
Copper in concentrates	MT	7.1	-	7.1	7.2	-	7.2	- 1%
Cobalt in concentrates	MT	0.6	-	0.6	0.6	-	0.6	-
Nikkelverk
Nickel metal	MT	-	91.7	91.7	-	92.4	92.4	n.m.
Copper metal	MT	-	37.9	37.9	-	36.3	36.3	n.m.
Cobalt metal	MT	-	3.0	3.0	-	3.1	3.1	n.m.
Total Nickel metal	MT	-	91.7	91.7	-	92.4	92.4	n.m.
Total Nickel in concentrates	MT	49.0	6.2	55.2	47.1	2.9	50.0	4%
Total Copper metal	MT	-	37.9	37.9	-	36.3	36.3	n.m.
Total Copper in concentrates	MT	59.6	5.3	64.9	54.7	2.4	57.1	9%
Total Cobalt metal	MT	-	3.0	3.0	-	3.1	3.1	n.m.
Total Cobalt in concentrates	MT	0.9	0.2	1.1	0.9	0.1	1.0	-
Falcondo
Nickel in ferronickel	MT	15.2	-	15.2	13.5	-	13.5	13%
Australia (XNA, Murrin Murrin)
Total Nickel metal	MT	33.4	3.0	36.4	28.5	1.5	30.0	17%
Total Nickel in concentrates	MT	11.7	-	11.7	17.0	-	17.0	- 31%
Total Copper in concentrates	MT	0.6	-	0.6	0.9	-	0.9	- 33%
Total Cobalt metal	MT	2.4	0.1	2.5	2.0	0.1	2.1	20%
Total Cobalt in concentrates	MT	0.3	-	0.3	0.4	-	0.4	- 25%

 

 

 

Aluminium/Alumina assets

 

thousand ¹		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
Sherwin
Alumina	MT	-	1 379	1 379	-	1 460	1 460	n.m.

 

 

 

Ferroalloys/PGM assets

 

thousand ¹		Using feed from own sources	Using feed from third party sources	2012 Total	Using feed from own sources	Using feed from third party sources	2011 Total	Own feed change
Ferro manganese	MT	-	17.3	17.3	-	-	-	n.m.
Silicon manganese	MT	-	15.9	15.9	-	-	-	n.m.
Ferrochrome	MT	938	-	938	1 021	-	1 021	- 8%
Platinum	toz	80	-	80	92	-	92	- 13%
1 Controlled industrial assets and JVs only. Production is on a 100% basis, except as stated.  2 Gold/Silver conversion ratios of 1/53.54 and 1/44.53 for 2012 and 2011 respectively based on average prices.  3 Copper metal includes copper contained in copper concentrates and blister copper.  4 Cobalt contained in concentrates and hydroxides.  5 The Enlarged Group's pro-rata share of Collahuasi production (44%)  6 The Enlarged Group's pro-rata share of Antamina production (33.75%)  7 113,000 tonnes (2011: 66,800 tonnes) of copper anode produced at Altonorte is refined to produce copper cathode at either Mount Isa or CCR and hence is     excluded from the totals  8 The Enlarged Group's pro-rata share of CEZ production (25%)  9 Reflects the Enlarged Group's 79.5% share of the Xstrata-Merafe Chrome Venture 10 Consolidated 100% of Eland and 50% of Mototolo

 

 

energy PRODUCTS

 

Pro forma production data

 

 

Coal assets

 

Million MT 1	Own	Buy-in Coal	2012 Total	Own	Buy-in Coal	2011 Total	Own production change
Australian coking coal	6.9	-	6.9	7.6	-	7.6	- 9%
Australian thermal coal (Export)	43.8	-	43.8	37.1	-	37.1	18%
Australian thermal coal (Domestic)	5.1	-	5.1	7.4	-	7.4	- 31%
Australian semi-soft coal	4.3	-	4.3	5.3	-	5.3	- 19%
South African thermal coal2   (Export)	21.1	-	21.1	9.6	-	9.6	120%
South African thermal coal2   (Domestic)	24.7	1.6	26.3	12.4	0.8	13.2	99%
Prodeco (Colombia) thermal coal	14.8	0.1	14.9	14.6	0.2	14.8	1%
Cerrejon (Colombia) thermal coal3	11.6	-	11.6	10.8	-	10.8	7%
Total coal	132.2	1.8	134.0	104.8	1.0	105.8	26%
1 Controlled industrial assets and JVs only. Production is on a 100% basis except for JVs, where the Enlarged Group's attributable share of production is included. 2 South African thermal coal production in 2011 has been reported exclusive of Mpumalanga tonnes. The Mpumulanga assets were sold effective 31 December 2011 and they produced one million tonnes for the 12 month period. 3 The Enlarged Group's pro-rata share of Cerrejon production (33.3%).

 

 

OiL assets

 

thousand bbls	2012 Total	2011 Total	Change
Oil 1
Block I	22 570	2 785	710%
Total	22 570	2 785	710%
1 On a 100% basis. The Enlarged Group's ownership interest in the Aseng field is 23.75%.

 

 

Selected average commodity prices

 

	2012	2011	Change
Australian coking coal average realised export price ($/t)	198	265	- 25%
Australian thermal coal average realised export price ($/t)	102	110	- 7%
Australian thermal coal average realised domestic price ($/t)	41	43	- 5%
Australian semi-soft coal average realised export price ($/t)	159	202	- 21%
South African thermal coal average realised export price ($/t)	96	101	- 5%
South African thermal coal average realised domestic price ($/t)	29	32	- 9%
Cerrejon (Colombia) thermal coal average realised export price ($/t)	89	101	- 12%
Prodeco (Colombia) thermal coal average realised export price ($/t)	85	95	- 11%

 

 

 

agricultural products

 

Pro forma production data including Viterra

 

thousand MT 1	2012 Total	2011 Total	Change
Farming	674	827	- 19%
Oilseed crushing	3 328	2 268	47%
Oilseed crushing long term toll agreement	876	948	- 8%
Biodiesel	534	569	- 6%
Rice milling	248	304	- 18%
Wheat milling	1 061	1 001	6%
Sugarcane processing	1 256	906	39%
Malt	491	440	12%
Pasta	283	309	- 8%
Total	8 751	7 572	16%
1 Controlled industrial assets and JVs only. Production is on a 100% basis except for JVs, where the Enlarged Group's attributable share of production is included.

 

 

 

 

 

This document contains statements that are, or may be deemed to be, "forward looking statements". These forward looking statements may be identified by the use of forward looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "will", "could", or "should" or in each case, their negative or other variations thereon or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and include, but are not limited to, statements regarding Glencore's beliefs, opinions or current expectations concerning, among other things, the business, financial condition, results of operations, prospects, strategies and plans of Glencore.

 

By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore's control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those discussed under "Principal risks and uncertainties "in section 1.7 of Glencore's Annual Report 2011, the section headed "Risks and uncertainties "in Glencore's Interim Report 2012 and the section headed "Risk factors "in Glencore's prospectus dated 31 May 2012 (as supplemented from time to time) filed in connection with the proposed merger with Xstrata plc.

 

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing Glencore. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward looking statements.

 

Forward looking statements speak only as of the date of this document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Services Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

 

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Glencore share for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.

 

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this document does not constitute a recommendation regarding any securities.