Part of supply chains around the world

Read more about What we do, see our story or visit Glencore around the world.

Our business model

We are one of the world’s largest diversified and vertically-integrated commodity producers, processors and traders. We market and distribute to a wide customer base that includes the industrial, automotive, construction, steel, power generation, oil and food processing industries. 

Business model horizontal 20161201

 

Explore, acquire & develop

We carry out exploration activities near to our current assets, to support development of brownfield sites. This approach lowers our risk profile and lets us use existing infrastructure, realise synergies and control costs.

We evaluate each industrial investment opportunity on its own merits as well as on its potential to strengthen our existing marketing activities or industrial assets.

Thus we can build on our economies of scale, our familiarity with our host political and cultural landscapes and our understanding of commodity dynamics.

Extract & produce

Our mineral mining and beneficiation activities cover a wide range of commodities, mining techniques and countries. We produce products for processing and refining at our own facilities, or for sale to third parties.

Commodity extraction and production involves long-term commitment and exposure to risks that include commodity prices, project development, changes in sovereign legislation and community acceptance.

Earning our social licence to operate from local communities and host governments is integral to our business.

Process & refine

We have a great deal of expertise in processing and refining activities, as well as advantages in terms of the technology we use. This allows us to optimise our end products for a wider customer base and produce in significant volume.

Having access to high volumes of product is an advantage for our marketing teams, as well as increasing our flexibility and optionality, providing security of supply and giving us valuable market knowledge. We purchase and process additional products as required from smaller operators that do not enjoy the same economies of scale.

Blending & optimising

Our presence at every stage of the commodity chain enables us to blend and optimise products. These come both from our own production and from third parties. making us better placed to meet the exact requirements of our customers.

Working with third-party suppliers allows us a fuller oversight of supply, plus valuable market and local knowledge leading to a better understanding of the balance between supply and demand in our markets.

Logistics & delivery

Our logistics assets around the world handle large volumes of commodities, fulfilling our marketing obligations and allowing us to capitalise on demand and supply imbalances.

We have storage and logistics assets in key strategic locations, including metal warehouses accredited by the London Metal Exchange and numerous oil and grain storage facilities.

Our value-added services fulfil customer needs and make us a preferred long-term counterparty as well as strengthening our long-term relationships.

 

Our business is divided into three business segments: metals & minerals, energy products and agriculture, as well as marketing & logistics.