Glencore PLC Implements Care and Maintenance Plan for Koniambo Nickel SAS

Glencore PLC Implements Care and Maintenance Plan for Koniambo Nickel SAS

(IN BRIEF) The shareholders of Koniambo Nickel SAS (KNS), including Société Minière du Sud Pacifique SA (SMSP) and Glencore plc, have decided to transition KNS into care and maintenance due to high operating costs and weak nickel market conditions. Glencore will fund the operation for six months as it moves to this state, with efforts to identify a new industrial partner underway. Despite substantial investments, KNS remains unprofitable, leading to this decision to safeguard shareholder interests.

(PRESS RELEASE) BAAR, 12-Feb-2024 — /EuropaWire/ — Glencore (LON: GLEN), a Swiss multinational commodity trading and mining company, announces that the shareholders of Koniambo Nickel SAS (KNS), a joint venture between Société Minière du Sud Pacifique SA (SMSP) and Glencore plc, have announced the decision to transition KNS into care and maintenance. This decision comes as a result of extensive discussions and negotiations with relevant government and key stakeholders.

As part of the transition, 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, during which the KNS team will support critical activities required to maintain the integrity of the asset and keep the site secure.

Glencore will also initiate a process to identify a potential new industrial partner for KNS shortly. All local KNS employees will be retained for a period of six months to aid in the transition process.

Despite efforts and proposed assistance from the French government to revitalize the nickel industry in New Caledonia, high operating costs and very weak nickel market conditions render KNS an unprofitable operation. Glencore, which has been the primary funder of KNS since acquiring the operation in 2013, cannot justify continuing to fund losses to the detriment of its shareholders.

Since its inception, KNS has contributed approximately US$5.6 billion in economic benefits to New Caledonia, including construction and operational expenditures, goods and services spending, and local salaries. However, despite Glencore’s substantial investment of over US$9 billion since project inception, the operation has not realized a profit.

Glencore expresses appreciation for the French government’s efforts but emphasizes the need for sustainable operations aligned with shareholder interests.

For further information please contact:

Investors

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

Media

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

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.

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SOURCE: Glencore