MEDIA

Updates regarding COVID-19

Updates regarding COVID-19

Last updated on 26 March 2020 at 15:19 CET

 

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. Our 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.

 

Archive

Update 20 March 2020

20 March 2020 at 15:45 CET

 

Glencore operates more than 200 sites and offices in over 35 countries. The scale and diversity of our operations means that the impact of COVID-19 varies by location. Accordingly, we continue to assess the risks and adapt our plans and actions in consultation with our local stakeholders. 

We have introduced a number of additional precautionary measures across our offices and industrial assets. These include:

  • Asking anyone who works for us to stay at home if they feel unwell and to seek medical advice and self-quarantine if they have symptoms consistent with those of COVID-19.
  • Implementation of enhanced hygiene and cleaning measures.
  • Restrictions on all non-essential travel.
  • Flexible working, including rotational and remote working, where necessary and possible. 
  • A Health Advisory channel for our people to seek advice and support.

 

Ivan Glasenberg, CEO, Glencore, commented:

“We continue to closely monitor and respond to events surrounding the COVID-19 pandemic. Our first priority is the health and wellbeing of all of our people and the broader community. 

“We have formulated our response in partnership with our expert medical advisors, taking into account advice from governments across the countries where we operate, and global bodies such as the World Health Organisation.

“Through our business continuity planning, we aim to minimise disruption so we can continue to source and deliver the products that our customers need.” 

Industrial and Marketing update
To date, there have been no material disruptions at our operating assets or within our supply chain and our marketing business is delivering annualised EBIT performance within our through the cycle long-term guidance range of $2.2bn to $3.2bn p.a. In light of various restrictions being imposed by Governments in different countries, we have to date seen some impact on certain smaller operations. 

Glencore also continues to review its industrial operations to ensure that they are appropriately positioned to support the Group’s overall performance during these uncertain times.

Liquidity and funding
Glencore had $10bn in available committed undrawn credit facilities and cash at the end of 2019. This liquidity has increased since the start of the year due to lower working capital funding requirements, in line with lower commodity prices. In addition, the significant weakening of our key producer currencies against the USD and lower oil prices and interest rates have provided substantial cash offsets to the fall in commodity prices.

We have received strong support from our banking partners in the annual refinancing of our Revolving Credit Facilities (RCF) and expect to announce their completion in the next few weeks. The shorter-term facility has a one-year extension, exercisable at Glencore’s discretion. The RCF has no financial covenants, rating triggers, material adverse change clauses or external factor clauses.

We recognise that the situation is evolving rapidly and we will continue to provide updates as appropriate. We thank our employees, contractors, customers, suppliers and other stakeholders for their support during this challenging time.

Update 16 March 2020

Update on 16 March 2020 at 11:30 CET

 

We continue to closely monitor and respond to events surrounding the COVID-19 pandemic. Our first priority is the health and wellbeing of all of our people and the broader community. 

Glencore operates more than 200 sites and offices in over 35 countries. The scale and diversity of our operations means that the impact of the virus varies by location; however, we continue to assess the risks and adapt our plans and actions accordingly. Through our business continuity planning, we aim to minimise disruption so we can continue to source and deliver the products that our customers need. 

We have formulated our response in partnership with our expert medical advisors, taking into account advice from governments across the countries where we operate, and global bodies such as the World Health Organisation.

We have introduced a number of additional precautionary measures across our offices and industrial assets. These include:

  • Asking anyone who works for us to stay at home if they feel unwell and to seek medical advice and self-quarantine if they have symptoms consistent with those of COVID-19.
  • Implementation of enhanced hygiene and cleaning measures.
  • Restrictions on all non-essential travel.
  • Flexible working, including rotational and remote working, where necessary and possible. 
  • A Health Advisory channel for our people to seek advice and support.

 

We recognise that the situation is evolving rapidly and we will continue to update this page as appropriate. We thank our employees, contractors, customers, suppliers and other stakeholders for their support during this challenging time.