Resources & Reserves as at 31 December 2015
Contents Page number
About this report
2
Definitions
4
Metals and Minerals: Copper
5
Zinc
16
Nickel
29
Ferroalloys
33
Iron ore
39
Energy Products: Coal
43
Oil
62
About this report We report our resources and reserves in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC), the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014 edition) and the Petroleum Resources Management System (PRMS) for reporting oil and natural gas Reserves and Resources. Overview The resource and reserve data in the following tables are as at 31 December 2015, unless otherwise noted. For comparison purposes, data for 2014 has been included.
Zinc The Zinc Mineral Resource and Ore Reserve Statement at 31 December 2015 has been compiled in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
Metric units are used throughout. All data is presented on a 100% asset basis, with the Glencore attributable percentage shown against each asset, with the exception of Oil assets which are shown on a working interest basis.
The term ‘Ore Reserves’, as defined in Clause 28 of the JORC Code, has the same meaning as ‘Mineral Reserves’ as defined in The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves.
All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals.
The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Ignacio Seebold, Glencore Zinc (ICOGEurGeol).
The Measured and Indicated resources are reported inclusive of those resources modified to produce reserves, unless otherwise noted.
Nickel The majority of the Mineral Resources and Mineral Reserves estimates are prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on 10 May 2014, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on 23 November 2003, and have been compiled using geo-statistical and/or classical methods, plus economic and mining parameters appropriate to each project.
Commodity prices and exchange rates used to establish the economic viability of reserves are based on long-term forecasts applied at the time the reserve was estimated. Where resources and reserves have not been updated, on the basis that the information has not materially changed since it was reported under JORC 2004, this information has not been updated to comply with the JORC code 2012. Reference is given in the report where this is the case. Copper Copper has adopted the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) as its standard for all public reports of exploration results, Mineral Resources and Ore Reserves.
The Mineral Resource and Ore Reserve estimates at Murrin Murrin in Australia have been prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Steve Kormos, Glencore Nickel.
The Mineral Resources and Ore Reserves Statement has been compiled in accordance with the JORC Code.
Ferroalloys South African chromite, vanadium and PGM’s (platinum group metals) Mineral Resources and Ore Reserves in this report were prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
The Mineral Resources and Ore Reserves statements for Australia and Asia have been reviewed and the relevant data extracted and compiled by Jason Hosken, Glencore Copper. The Mineral Resources and Ore Reserves statements for each African and South American operation and project have been reviewed, with the data being extracted and compiled by the respective competent person for each operation and project.
The Chromite, Vanadium and PGM’s Mineral Resource and Ore Reserve Statement at 31 December 2015 is based on the Glencore Ferroalloys “Procedure for the Estimation of Mineral Resources and Ore Reserves”. 2 Glencore - Resources & Reserves Report 2015
About this report
Definitions of all the terms used in this report can be found in the relevant code.
Classification Measured + Indicated Resources / Proved + Probable Reserves
The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Pieter-Jan Gräbe, Glencore Ferroalloys (SACNASP). Iron Ore Iron ore Mineral Resources and Ore Reserves have been compiled in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), unless otherwise stated in the notes for a particular Mineral Resource and Ore Reserve.
Inferred
Tonnage Range
Rounding
< 10Mt
1 significant figure
10Mt - 30Mt
2 significant figures
30Mt - 100Mt
Nearest 5Mt
> 100Mt
2 significant figures
>1000Mt
Nearest 50Mt
< 100Mt
Nearest 10Mt
100Mt - 400Mt
Nearest 50Mt
> 400Mt
Nearest 100Mt
Coal Reserves are rounded to the same assumptions as Measured and Indicated Coal Resources above. Individual tonnage assessments are added to show Group or Complex tonnages and geographical accumulations. These are not subjected to further rounding.
The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Nick Brett, Glencore Iron Ore.
The Coal Resource and Reserve Competent Person statements have been reviewed and the relevant data extracted and compiled by Jeff Gerard, Glencore Coal.
Coal Australian, Canadian and Colombian (Prodeco) Coal Resources and Reserves have been prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
Oil Oil and natural gas Resources and Reserves have been prepared in accordance with the PRMS jointly published by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers, as amended.
South African and Colombian (Cerrejón) Coal Resources and Reserves have been prepared in accordance with the 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC).
The Equatorial Guinea Oil Reserves statement has been reviewed and the relevant data extracted and compiled by Gaffney, Cline & Associates (GCA).
The Coal Resource and Reserve Statements as at 31 December 2015 conform to the requirements of these Codes and are consistent with Glencore Coal’s internal Coal Resource and Reserve Estimation and Reporting Standard.
The Chad Oil Reserves statement has been reviewed and the relevant data extracted and compiled by McDaniel & Associates (McDaniel).
Coal resources have been estimated for all coal seams that have reasonable prospects for eventual economic extraction by open cut or underground mining methods within mining leases or exploration licences. In general, Coal Resources are reported within a geoshell limited by the areal and depth extent of the drill holes; i.e. there is very little inclusion of Coal Resources extrapolated beyond the extent of the geological data.
The Oil Resources statements for Equatorial Guinea, Chad and Cameroon have been reviewed and the relevant data extracted and compiled by Glencore. Competent/Qualified Persons Resource and reserve estimates are based on information compiled by Competent Persons (as defined by the JORC, SAMREC Codes), Qualified Persons (as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves) and Adequately Qualified Persons (as defined by PRMS).
Coal Resources are excluded from those areas where the seam has been extracted or sterilised by mining. Coal Resources do not include out-of-seam dilution. Underground Coal Resources are typically reported on a full seam or working section basis, and therefore may contain thin stone bands within the seam. Coal Resources are reported on an in situ moisture basis.
Each of the Competent/Qualified Persons has the appropriate professional membership and the relevant experience in relation to the resources and/or reserves being reported by them to qualify as a Competent or Qualified Person as defined in the relevant code or standard. Each has consented to the inclusion of their resource and reserve estimates in the form and context in which it appears in this report.
All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals. Coal Resource and Reserve totals are rounded to appropriate levels of accuracy in accordance with the 2012 JORC Code and the Glencore Coal rounding procedures. The following table summarises the data rounding assumptions for the 2015 report. 3
Glencore - Resources & Reserves Report 2015
Definitions Throughout this report, the following abbreviations and definitions have been used: 3PGE
Three Platinum Group Elements (Platinum, Palladium and Rhodium)
AIG
Australian Institute of Geoscientists
APEGBC
Association of Professional Engineers and Geoscientists of BC
APEGGA
Association of Professional Engineers Geologists and Geophysicists of Alberta
APEGNB
Association of Professional Engineers and Geoscientists of New Brunswick
APEO
Association of Professional Engineers of Ontario
APGO
Association of Professional Geoscientists of Ontario
AusIMM
Australasian Institute of Mining and Metallurgy
CIM
Canadian Institute of Mining, Metallurgy and Petroleum
CV (kcal/kg)
Calorific Value, kilo calories per kilogramme
DTC
Davis Tube Concentrate
ECSA
Engineering Council of South Africa
EL
Exploration Licence
FPSO
Floating production, storage and offloading
Geoshell
A broad envelope limited by the depth and areal extent of geological data points (primarily drill holes)
GSL
Geological Society of London
ICOG-EurGeol Ilustre Colegio Oficial de Geólogos – European Geologist JORC
Joint Ore Reserves Committee
kt
Thousand tonnes
LOM
Life of Mine
LOX
Limit of Oxidation
LOZ
Lower Oxidised Zone
OC
Open cast or Open cut
OGQ
Ordre des Géologues du Québec
OIQ
Ordre des Ingénieurs du Québec
MR
Mineral Resources
Mt
Million tonnes
NSR
Net Smelter Return
OR
Ore Reserves
PLATO
South African Council for Professional and Technical Surveyors
PRMS
Petroleum Resources Management System
ROM
Run of Mine
SACNASP
The South African Council for Natural Scientific Professions
SAMREC
South African Code for Reporting of Mineral Resources and Mineral Reserves
tpd
Tonnes per day
UG
Underground
UG2
Upper Group 2 Reef
VMS
Volcanogenic Massive Sulphide
Marketable Coal Reserves (CIM/JORC) and Saleable Coal Reserves (SAMREC) are the tonnage and coal quality that will be available for sale, either in the raw ROM state at specific moisture content or after beneficiation of the ROM Coal Reserve has produced materials at specified qualities, moisture contents and size ranges. Definitions of many of the terms used in this report can be found in the relevant codes.
4 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper African Copper Mineral Resources (Katanga, Mutanda, Mopani) Name of operation
Attributable Mining interest method
Katanga Kamoto
56.4%
UG
T17 (OC&UG) 56.4% UG/OC Mashamba East
56.4%
OC
KOV OC, KOV UG, KTE Kananga
56.4%
OC
Tilwezembe
56.4%
56.4%
Total Katanga
Mutanda Mutanda South
69.0%
OC
69.0%
OC
73.1%
UG
Nkana Oxides
73.1%
UG/OC
Nkana Tailings Dump Mufulira Sulphides Mufulira Oxides Mufulira Surface Total Mopani
73.1%
Mutanda North Total Mutanda
Mopani Nkana Sulphides
73.1%
UG
73.1%
UG
73.1%
Commodity
Measured Mineral Resources 31.12.15 31.12.14
Indicated Mineral Resources 31.12.15 31.12.14
Measured and Indicated Resources 31.12.15 31.12.14
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
(Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%)
9.5 3.91 0.48 4.2 2.66 0.51 – – – – – – – – – – – – 14 3.53 0.49
26.8 4.48 0.59 4.2 2.66 0.51 – – – – – – – – – – – – 31 4.23 0.58
72.9 3.84 0.43 9.4 4.44 0.65 26.2 1.51 0.71 71.4 4.16 0.51 4.1 1.61 0.79 9.5 1.89 0.60 194 3.53 0.52
32.9 4.78 0.58 9.4 4.44 0.65 75.0 1.80 0.38 110.6 5.37 0.41 4.1 1.61 0.79 9.5 1.89 0.60 242 3.94 0.45
82.4 3.85 0.43 13.6 3.89 0.61 26.2 1.51 0.71 71.4 4.16 0.51 4.1 1.61 0.79 9.5 1.89 0.60 207 3.53 0.52
59.7 4.65 0.58 13.6 3.89 0.61 75.0 1.80 0.38 110.6 5.37 0.41 4.1 1.61 0.79 9.5 1.89 0.60 273 3.98 0.46
49.2 4.44 0.34 5.2 4.21 0.98 37.2 2.33 0.53 91.0 4.44 0.36 4.0 2.00 0.98 13.8 1.75 0.60 200 3.81 0.43
11.0 5.00 0.59 5.2 4.21 0.98 65.3 0.76 0.10 68.9 3.59 0.32 4.0 2.00 0.98 13.8 1.75 0.60 168 2.41 0.31
CS
(Mt) Copper (%) Cobalt (%) Mt Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%)
193.7 1.78 0.70 48.1 0.73 0.34 242 1.57 0.63
177.5 1.83 0.62 48.1 0.73 0.34 226 1.60 0.56
168.1 1.16 0.43 29.1 0.51 0.14 197 1.06 0.39
122.1 1.38 0.57 29.1 0.51 0.14 151 1.21 0.49
361.8 1.49 0.57 77.2 0.65 0.26 439 1.34 0.52
299.6 1.65 0.60 77.2 0.65 0.26 377 1.45 0.53
162.4 0.90 0.29 58.9 0.48 0.08 221 0.79 0.23
149.8 1.05 0.42 58.9 0.48 0.08 209 0.89 0.32
CS
(Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) (Mt) Copper (%) (Mt) Copper (%) (Mt) Copper (%) Cobalt (%)
151.7 2.10 0.11 7.5 2.32 0.03 – – – 28.0 2.46 8.8 1.19 3.0 1.81 199 2.11 0.08
143.8 2.08 0.11 9.0 2.30 0.03 – – – 21.1 2.49 7.0 1.35 3.0 1.81 184 2.11 0.09
47.0 2.00 0.12 1.9 1.94 0.05 5.7 0.71 0.07 12.5 2.75 2.0 0.90 1.8 1.80 71 1.99 0.09
46.2 1.87 0.12 0.9 2.58 0.01 5.7 0.71 0.07 9.2 2.55 1.5 1.08 1.8 1.80 65 1.85 0.09
198.7 2.08 0.11 9.4 2.24 0.03 5.7 0.71 0.07 40.5 2.55 10.7 1.14 4.9 1.81 270 2.08 0.08
190.0 2.03 0.11 9.9 2.33 0.03 5.7 0.71 0.07 30.3 2.51 8.5 1.31 4.9 1.81 249 2.04 0.09
51.1 1.97 0.14 1.6 1.92 0.04 0.8 0.94 0.07 24.0 2.46 1.3 0.82 1.3 1.76 80 2.08 0.09
47.9 1.86 0.13 0.9 1.92 0.01 0.8 0.94 0.07 34.3 2.46 0.9 1.11 1.3 1.76 86 2.08 0.07
CS
CS
CS
CS
CS
CS
CS
CS
CS
CS CS CS
5 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
African Copper Ore Reserves (Katanga, Mutanda, Mopani) Name of operation
Attributable interest
Mining method
Katanga Kamoto
56.4%
UG
T17 (OC & UG)
56.4%
UG/OC
Mashamba East
56.4%
OC
KOV OC, KOV UG, KTE
56.4%
OC
Mutanda Mutanda South
69.0%
OC
Stockpiles
69.0%
Total Katanga
Total Mutanda
Mopani Nkana Sulphides
73.1%
UG
Nkana Oxides
73.1%
UG/OC
Mufulira Sulphides 73.1%
UG
Mufulira Oxides
UG
Total Mopani
73.1%
Commodity
Proved Ore Reserves Probable Ore Reserves 31.12.15 31.12.14 31.12.15 31.12.14
Total Ore Reserves Competent 31.12.15 31.12.14 person
Ore (Mt) Copper (%) Cobalt (%) Ore (Mt) Copper (%) Cobalt (%) Ore (Mt) Copper (%) Cobalt (%) Ore (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%)
8.2 3.68 0.37 2.2 3.42 0.54 – – – – – – 10 3.62 0.41
15.3 3.52 0.56 2.2 3.42 0.54 – – – – – – 18 3.51 0.56
17.2 3.57 0.52 9.1 3.71 0.64 5.8 2.68 0.37 55.9 4.23 0.47 88 3.94 0.49
11.6 3.47 0.53 9.1 3.71 0.64 5.9 3.00 0.36 43.8 4.56 0.44 70 4.14 0.47
25.5 3.60 0.47 11.3 3.65 0.62 5.8 2.68 0.37 55.9 4.23 0.47 99 3.91 0.48
27.0 3.50 0.54 11.3 3.65 0.62 5.9 3.00 0.36 43.8 4.56 0.44 88 4.01 0.49
JL
Ore (Mt) Copper (%) Cobalt (%) Ore (Mt) Copper (%) Cobalt (%) (Mt) Copper (%) Cobalt (%)
93.1 2.24 0.84 20.8 1.68 0.92 114 2.14 0.85
120.7 2.01 0.68 17.5 1.59 1.08 138 1.96 0.73
42.9 1.77 0.69 – – – 43 1.77 0.69
62.8 1.53 0.67 – – – 63 1.53 0.67
136.0 2.09 0.79 20.8 1.68 0.92 157 2.04 0.81
183.5 1.84 0.68 17.5 1.59 1.08 201 1.82 0.71
JL
Ore (Mt) Copper (%) Cobalt (%) Ore (Mt) Copper (%) Cobalt (%) Ore (Mt) Copper (%) Ore (Mt) Copper (%) (Mt) Copper (%) Cobalt (%)
100.2 1.86 0.09 – – – 14.1 2.19 – – 114 1.90 0.08
102.4 1.89 0.09 5.1 2.83 0.11 12.2 2.15 0.6 1.05 120 1.95 0.08
22.9 1.78 0.09 – – – 7.0 2.36 – – 30 1.92 0.07
21.2 1.79 0.09 5.7 0.81 0.07 4.8 2.21 0.1 1.01 32 1.68 0.07
123.1 1.84 0.09 – – – 21.1 2.25 – – 144 1.90 0.08
123.5 1.87 0.09 10.8 1.76 0.09 17.0 2.17 0.6 1.04 152 1.89 0.08
HT
JL
JL
JL
JL
HT
HT HT
6 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Notes Katanga: Remaining life of mine: expected to be in excess of 20 years. Expiry date of relevant permits: 7 May 2022 for the Kananga Extension and 3 April 2024 for all remaining permits (KTO and Mashamba East Open Pit, T-17 Open Pit, KOV Open Pit, Tilwezembe Open Pit, Kananga Mine), renewable in accordance with the DRC mining code for a period of 15 years.
Mopani: Remaining life of mine: 29 years for Nkana and 14 years for Mufulira. Expiry date of relevant mining/ concession licences: 31 March 2025 for both of these mines. Within the Nkana mining area there are four underground mines and a series of open pits. The open pits are under care and maintenance and have therefore been excluded from Ore Reserves and included under Mineral Resources. All are situated on the north-eastern limb of the Nkana Syncline area. Other cupriferous zones are present in the nose and southwest limb of the syncline. The orebodies are stratiform and are mainly confined to a recognisable ore formation, which occurs near the base of the Katangan sequence within the Lower Roan Group of the Mine Series. In the underground workings, the principal copper ore minerals are chalcopyrite and bornite with subordinate chalcocite. There is a zoning in the geographical distribution of these minerals. Cobalt occurs as carrollite and cobaltiferious pyrite. The principal ore minerals are malachite, pseudomalchite, chrysocolla, native copper, cuprite and libethenite. In the open pit, malachite and chrysocolla are the principal ore minerals in the zone of oxidation closer to the surface. In some places however, vermiculite, malachite pseudomalachite and accessory wad are more important. At deeper levels chalcopyrite, bornite and chalcocite are predominantly present.
Glencore owns 75.2% of Katanga Mining Limited (“KML”), which in turn owns 75% of Kamoto Copper Company SARL (“KCC”). KCC owns the material assets, including the mining and exploration rights related to the mining assets. La Generale des Carrieres et des Mines and La Société Immobilière du Congo, which are state-owned mining companies in the DRC, own the other 25% of KCC. With the exception of Tilwezembe, primary mineralisation, in the form of sulphides, within the Lower Roan is associated with the Stratified Dolomite and Silicified Rocks for the Orebody Inferior and the Basal Schists and Upper Dolomitic Shales for the Orebody Superior and is thought to be sys-sedimentary in origin. Typical primary copper sulphide minerals are bornite, chalcopyrite, chalcocite and occasional native copper while cobalt is in the form of carrolite. The mineralisation occurs as disseminations or in association with hydrothermal carbonate alteration and silicification. The mineralisation at Tilwezembe Mine is atypical being hosted by the Mwashya or R4 Formation. The mineralisation generally occurs as infilling of fissures and open fractures associated with the brecciation. The typical copper minerals are mainly chalcopyrite, malachite and pseudomalachite while cobalt is in the form of heterogenite, carrolite and spherocobaltite. Manganese minerals are psilomelane and manganite.
In the Mufulira mining area, the Basement Complex topography appears to have exerted a significant structural control during deformation. The distribution of ore minerals in all three orebodies is stratigraphically controlled, occurring dominantly as disseminations, blebs and irregular masses. The principal copper minerals are chalcopyrite (60%), bornite (40%), and minor/trace chalcocite. Oxide minerals are confined to near surface occurrences, and supergene enrichment zones. Generally the deposit is structurally simple being characterised by three main folds that are in part overturned with a plunge and dip approximately 10º to the northeast. The basin is open and untested at depth.
Mutanda: Remaining mine life: estimated in excess of 15 years. Expiry date of relevant mining permits: 26 May 2022 for Mutanda and 1 July 2022 for Kansuki. Both mining permits are renewable in accordance with the DRC mining code for periods of 15 years. Mutanda North (Kansuki) consists of Kabwimia, Area 2 East, and Area 2 West. Mutanda South (Mutanda) consists of East (includes Area 1), Central (includes Central North West), and West.
Competent persons CS = Christiano Santos Goncalves of Golder Associates Africa (Pty) Ltd, (MAusIMM CP (Geo)). HT = Hugo Tukker of Golder Associates Africa (Pty) Ltd, (ECSA, PrEng).
Drilling undertaken in Mutanda South in 2015 provided an increased level of geological knowledge and confidence in the resource.
JL = Jacobus Lotheringen of Ukwazi Mining Solutions (Pty) Ltd, for Golder Associates Africa (Pty) Ltd, (SAIMM, PrEng.).
7 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Collahuasi Mineral Resources Name of operation
Attributable Mining interest method
Collahuasi
44%
OC
Commodity
Sulphide (Mt) Copper (%) Molybdenum (%) Oxide & Mixed (Mt) Copper (%) (Mt) Copper (%) Molybdenum (%)
Total Collahuasi
Measured Mineral Resources 31.12.15 31.12.14
757 0.82 0.020 34 0.66 791 0.81 0.02
681 0.82 0.019 31 0.67 712 0.81 0.02
Indicated Mineral Resources 31.12.15 31.12.14
4,261 0.82 0.023 49 0.68 4,310 0.82 0.02
4,136 0.82 0.022 47 0.61 4,183 0.82 0.02
Measured and Indicated Resources 31.12.15 31.12.14
5,019 0.82 0.023 83 0.67 5,102 0.82 0.02
4,818 0.82 0.022 78 0.63 4,896 0.82 0.02
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
4,851 0.80 0.017 25 0.54 4,876 0.80 0.02
5,030 0.80 0.020 30 0.50 5,060 0.80 0.02
LA
LA
Collahuasi Ore Reserves Name of operation
Attributable Mining interest method
Collahuasi
44%
Total Collahuasi
OC
Commodity
Proved Ore Reserves Probable Ore Reserves 31.12.15 31.12.14 31.12.15 31.12.14
Sulphide (Mt) Copper (%) Molybdenum (%) Oxide & Mixed (Mt) Copper (%) (Mt) Copper (%) Molybdenum (%)
501 1.00 0.023 15 0.63 516 0.99 0.02
464 0.97 0.027 18 0.67 482 0.96 0.03
2,592 0.82 0.020 15 0.73 2,607 0.82 0.02
2,753 0.78 0.017 20 0.73 2,773 0.78 0.02
Total Ore Reserves Competent 31.12.15 31.12.14 person
3,093 0.85 0.020 30 0.68 3,123 0.85 0.02
3,217 0.80 0.018 38 0.70 3,255 0.80 0.02
AP
AP
Notes Collahuasi: The Collahuasi district is located in northern Chile, Tarapacá Region, and host large Copper-Molybdenum porphyry-type deposits: Ujina, Rosario, and peripheral vein deposits such as Rosario Oeste and Rosario Sur. Sulphides as chalcopyrite, bornite and less chalcosite are the main copper minerals at Ujina and Rosario. At Rosario Oeste, supergene chalcosite is the main copper mineral. Rosario Sur is a small oxide-bearing deposit, mainly chrysocolla. Collahuasi is mined by open cut methods. The Rosario orebody is the main source of mineral for current Collahuasi operation. Mineral Resources for Rosario, Ujina, Rosario Oeste and Rosario Sur have been classified into Measured, Indicated and Inferred categories based on minimum search radius constraints and drill hole spacing. Mineral Resources are reported within the constraints of optimised pit shells. Mineral Resources and Ore Reserves have been updated on the basis of new drilling information, updated geological-geostatistical models, mining parameters and adjustments to metal prices forecast. The 49Mt ore production for 2015 is already depleted from the reported Ore Reserves. Ore Reserves estimates are based only on Measured and Indicated Mineral Resources, optimised mine plans and meet minimum operational cutoff requirements. The Ore Reserves include all Proved and Probable Ore Reserves above the mill (operational) cut-off grade. Changes to the block model and an increase in mill cut-off grade have decreased the Ore Reserves by 83Mt. The process of generating the resource model and optimised pit shells incorporated diluting materials as such no additional dilution factors were required in converting Mineral Resources to Ore Reserves. Both Mineral Resources and Ore Reserves include estimates of stockpile material at time of reporting. Material included in stockpile is periodically verified and re-evaluated through drilling, trenching, and sampling. Stockpile material from Rosario and Ujina pits are classified according to the level of perceived uncertainty. These materials have been downgraded to Probable Ore Reserves. All sulphide
stockpiles are considered Indicated Mineral Resources and are classified as Probable Ore Reserves. Collahuasi has a life of mine of 70 years from 2016 to 2085, according to the most recent Life of Mine plan that supports the present Ore Reserves report.
Competent persons LA = Luis Aedo, Employee of Compañía Minera Doña Inés de Collahuasi (AusIMM). AP = Andrés Pérez, Employee of Compañía Minera Doña Inés de Collahuasi (AusIMM).
8 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Antamina Mineral Resources Name of operation
Attributable Mining interest method
Antamina
33.75% OC
Commodity
Sulphide Cu (Mt) Copper (%) Zinc (%) Silver (g/t) Molybdenum (%) Sulphide Cu-Zn (Mt) Copper (%) Zinc (%) Silver (g/t) Molybdenum (%) (Mt) Copper (%) Zinc (%) Silver (g/t) Molybdenum (%)
Total Antamina
Measured Mineral Resources 31.12.15 31.12.14
173 0.89 0.14 8.0 0.034 83 1.00 1.88 16.0 0.011 256 0.93 0.70 10.6 0.027
188 0.88 0.14 7.9 0.034 86 0.95 1.95 16.0 0.012 274 0.90 0.71 10.4 0.027
Indicated Mineral Resources 31.12.15 31.12.14
506 0.88 0.14 8.0 0.027 335 0.94 1.84 15.0 0.009 841 0.90 0.82 10.8 0.020
514 0.89 0.16 8.3 0.027 348 0.87 1.89 14.3 0.009 862 0.88 0.86 10.7 0.020
Measured and Indicated Resources 31.12.15 31.12.14
679 0.88 0.14 8.0 0.029 418 0.95 1.85 15.2 0.009 1,097 0.91 0.79 10.7 0.021
702 0.89 0.15 8.2 0.029 434 0.89 1.90 14.6 0.010 1,136 0.89 0.82 10.6 0.022
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
780 0.83 0.14 8.0 0.022 493 1.02 1.53 16.0 0.008 1,273 0.90 0.68 11.1 0.017
770 0.80 0.10 9.0 0.023 510 0.90 1.50 15.0 0.008 1,280 0.84 0.66 11.4 0.017
LC
LC
Antamina Ore Reserves Name of operation
Attributable interest
Mining method
Antamina
33.75%
OC
Total Antamina
Commodity
Sulphide Cu (Mt) Copper (%) Zinc (%) Silver (g/t) Molybdenum (%) Sulphide Cu-Zn (Mt) Copper (%) Zinc (%) Silver (g/t) Molybdenum (%) (Mt) Copper (%) Zinc (%) Silver (g/t) Molybdenum (%)
Proved Ore Reserves Probable Ore Reserves 31.12.15 31.12.14 31.12.15 31.12.14
128 1.02 0.14 8.0 0.037 63 1.08 2.10 17.0 0.009 191 1.04 0.79 11.0 0.028
145 1.00 0.15 8.6 0.035 65 1.07 2.24 17.1 0.010 210 1.02 0.80 11.2 0.027
207 0.99 0.17 8.0 0.032 200 0.83 1.98 13.0 0.008 407 0.91 1.06 10.5 0.020
231 0.97 0.18 8.0 0.032 206 0.83 2.06 13.1 0.008 437 0.90 1.07 10.4 0.021
Total Ore Reserves Competent 31.12.15 31.12.14 person
335 1.00 0.16 8.0 0.034 263 0.89 2.01 14.0 0.008 598 0.95 0.97 10.6 0.023
376 0.98 0.17 8.2 0.033 271 0.89 2.10 14.1 0.008 647 0.94 0.98 10.7 0.023
LM
LM
Notes Antamina: Antamina is a polymetallic (copper, zinc and molybdenum predominate) skarn deposit resulting from complex multiple intrusive events. Copper mineralization occurs mainly as chalcopyrite except for some areas of bornite, representing approximately 5% of the deposit. Zinc mineralization generally occurs as sphalerite. Other significant sulphide minerals include molybdenite and pyrite, while trace amounts of numerous silver and bismuth bearing minerals and local areas of galena (lead sulphide) are also found within the deposit.
treated as waste. The cut-off grade for the Ore Reserves estimate varies by year in an effort to maximize the net present value of the life-of-mine. Ore Reserves are limited to the current operation tailings dam capacity. The total Sulphide Ore Reserves (Cu and Cu-Zn) decreased 49Mt, primarily due to depletion during 2015. Antamina has an approved life of mine plan of 13 years (2016-2028), based on Ore Reserves. Operating permits are valid until the end of the life of mine.
The Mineral Resource classification is based on geologic risk factors (proportion of breccia indicator), geologic continuity (intrusive, endoskarn and exoskarn-waste) and drill hole spacing. The Antamina deposit is sufficiently well drilled to support the classification criteria.
Competent persons LC = Lucio Canchis, Employee of Compania Minera Antamina S.A. (AusIMM); LM = Luis Mamani, Employee of Compañia Minera Antamina S.A. (AusIMM).
Ore Reserves results were developed during the mine planning process in 2015, which is based on the end of year 2015 topography projection. The life-of-mine plan, and subsequent Ore Reserve estimation used for this statement considers only Measured and Indicated Mineral Resources; all Inferred Mineral Resources within this pit has been 9
Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Other South America Mineral Resources (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui) Name of operation
Attributable Mining interest method
Alumbrera 50% Bajo de la Alumbrera
OC
Bajo El Durazno
OC
Lomas Bayas Lomas Bayas I
Indicated Mineral Measured and Resources Indicated Resources 31.12.15 31.12.14 31.12.15 31.12.14
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
Ore (Mt) Copper (%) Gold (g/t) Molybdenum (%) (Mt) Copper (%) Gold (g/t)
82 0.31 0.30 0.012 57 0.15 0.39
145 0.33 0.31 0.012 7 0.17 0.37
4 0.25 0.22 0.014 44 0.15 0.41
5 0.25 0.21 0.014 30 0.15 0.37
86 0.31 0.29 0.012 101 0.15 0.40
150 0.33 0.31 0.012 37 0.15 0.37
1 0.23 0.22 0.014 59 0.14 0.33
– – – – 104 0.14 0.37
FM
Oxide & Mixed (Mt) Copper (%) Soluble Copper (%) Oxide & Mixed (Mt) Copper (%) Soluble Copper (%) Sulphide&Mixed (Mt) Copper (%) Oxide & Mixed (Mt) Copper (%) (Mt) Copper (%) Gold (g/t) Silver (g/t) Molybdenum (%) (Mt) Copper (%) Gold (g/t) Silver (g/t) (Mt) Copper (%) Silver (g/t) (Mt) Copper (%) Gold (g/t) Silver (g/t)
110 0.28 0.17 198 0.30 0.21 17 0.54 1 0.23 198 0.60 0.13 1.6 0.005 9 0.71 0.08 2.1 1.25 1.70 5.9 673 0.39 0.11 0.5
134 0.36 0.19 221 0.30 0.20 17 0.54 1 0.23 238 0.60 0.13 1.6 0.005 9 0.71 0.08 2.1 4.15 1.30 5.8 776 0.42 0.10 0.5
469 0.21 0.19 359 0.23 0.14 431 0.36 58 0.22 488 0.46 0.09 1.3 0.005 247 1.02 0.10 3.2 4.2 1.00 1.8 2,104 0.40 0.04 0.7
432 0.26 0.13 325 0.24 0.15 431 0.36 58 0.22 502 0.45 0.09 1.3 0.005 240 1.02 0.11 3.2 3.8 1.00 2.0 2,027 0.41 0.04 0.7
579 0.22 0.13 557 0.26 0.17 448 0.37 59 0.22 686 0.50 0.10 1.4 0.005 256 1.01 0.10 3.1 5.4 1.19 2.8 2,777 0.40 0.06 0.6
566 0.28 0.15 546 0.26 0.17 448 0.37 59 0.22 740 0.50 0.10 1.4 0.005 249 1.01 0.11 3.2 8.0 1.20 4.0 2,803 0.42 0.06 0.7
45 0.20 0.10 49 0.10 0.10 443 0.30 26 0.20 165 0.40 0.10 0.9 0.005 80 1.20 0.10 4.7 1.9 1.12 1.1 870 0.37 0.05 0.6
29 0.20 0.10 25 0.10 0.10 433 0.30 26 0.20 160 0.40 0.10 0.9 0.005 80 1.20 0.10 4.8 2.0 1.20 1.0 859 0.37 0.07 0.6
MR
FM
100% OC
Lomas Bayas II
OC
Lomas Bayas III
OC
Antapaccay
Commodity
Measured Mineral Resources 31.12.15 31.12.14
100%
OC
Coroccohuayco 100%
OC
Punitaqui
UG
100%
Total Other South America
MR
MR
HB
HB
CM
10 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Other South America Ore Reserves (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui) Name of operation
Attributable interest
Mining method
Alumbrera 50% Bajo de la Alumbrera
OC
Bajo el Durazno
OC
Lomas Bayas Lomas Bayas I
Commodity
Proved Ore Reserves 31.12.15 31.12.14
Probable Ore Reserves 31.12.15 31.12.14
Total Ore Reserves Competent 31.12.15 31.12.14 person
Ore (Mt) Copper (%) Gold (g/t) Molybdenum (%) Ore (Mt) Copper (%) Gold (g/t)
25 0.39 0.38 0.012 3 0.18 0.36
145 0.33 0.31 0.012 5 0.19 0.41
1 0.27 0.29 0.012 – – –
5 0.25 0.21 0.014 3 0.18 0.36
26 0.39 0.38 0.012 3 0.18 0.36
150 0.33 0.31 0.012 8 0.19 0.39
FM
Oxide & Mixed (Mt) Copper (%) Soluble Copper (%) Oxide & Mixed (Mt) Copper (%) Soluble Copper (%) (Mt) Copper (%) Gold (g/t) Silver (g/t) Ore (Mt) Copper (%) Silver (g/t) (Mt) Copper (%) Gold (g/t) Silver (g/t)
82 0.28 0.17 185 0.30 0.21 194 0.60 0.13 1.6 1.1 1.47 5.0 490 0.42 0.07 0.6
73 0.32 0.19 209 0.30 0.21 230 0.61 0.14 1.6 2.7 1.26 6.0 665 0.42 0.12 0.6
151 0.21 0.13 235 0.23 0.15 353 0.48 0.10 1.4 0.2 1.30 5.5 740 0.35 0.05 0.7
115 0.25 0.15 233 0.24 0.15 367 0.47 0.10 1.4 1.8 0.95 2.6 725 0.36 0.05 0.7
233 0.23 0.14 420 0.26 0.18 547 0.52 0.11 1.4 1.3 1.44 5.0 1,230 0.37 0.06 0.6
188 0.28 0.17 442 0.26 0.18 597 0.52 0.12 1.5 4.6 1.14 4.6 1,390 0.38 0.09 0.7
MR
FM
100% OC
Lomas Bayas II
OC
Antapaccay
100%
OC
Punitaqui
100%
UG
Total Other South America
MR
HB
CM
Notes Bajo de La Alumbrera and Bajo El Durazno: The Bajo de la Alumbrera copper-gold porphyry deposit is located in the Hualfin district, Belen department of the Catamarca province, in the northwest region of Argentina. The orebody consists of primary sulphide mineralised ore which comprises disseminated, vein and fracture controlled chalcopyrite in altered dacite and andesite host rocks, with minor chalcocite and covellite in the enriched zone that surrounds the major faults.
The Bajo el Durazno deposit belongs to the mining district of Agua de Dionisio and is located 5km northeast of the Bajo de la Alumbrera deposit and 2km from Minera Alumbrera’s concentrator plant. The deposit is located within the Farallón Negro volcanic complex, which is eroded, deformed by faults and mineralized, resulting in a “depressed geomorphological” with hydrothermal alteration known as “Bajo”. 39,444m of diamond drilling was completed between 2009 and 2015. Ore Reserves and Mineral Resources figures are obtained using Ordinary Kriging interpolation for Cu and Au. The size of the block in the geological model (10x10x15) was based on geological criteria stemming from the geological interpretation and the proposed drilling grid.
The variations from the 31 December 2014 published statement are a result of the latest review of the geotechnical model, the final design of the pit slopes, updated new economic parameters, and depletion for milled tonnage. The Ore Reserves and Mineral Resources figures are obtained using Ordinary Kriging interpolation within geological constraints from an assay database comprising some 116,000m of diamond drilling and 15,000m of reverse circulation drilling. Ore Reserves are based on a pit optimisation, and are reported using an economic 0.22% Cu equivalent cut-off grade. The strip ratio for the updated pit is 0.29 and defined as the in-pit tonnes of waste divided by the in-pit tonnes of ore. The life-of-mine is up to 2017.
The Mineral Resources were estimated using a cut-off 0.20g/t for Au. Ore Reserves are based on a pit optimization and are reported on an economic 0.30g/t Au equivalent cut-off grade. The variations from the 31 December 2014 published statements are a result of incorporating data from an additional 17,800m of infill diamond drilling during the last campaign (2014) as well as mining during 2015. Lomas Bayas (I) – Lomas Bayas (III): Lomas Bayas is a low grade Cu-Mo deposit resulting from the intrusion of several porphyry and breccia systems that were later exposed to leaching and subsequent supergene enrichment and in situ oxidation. Green copper oxides, copper sulphates in various forms and less partially mixed ores are the main source of ore for the existing SX/EW operation. The copper oxidessulphate mineralisation is the basis of the Lomas Bayas Ore Reserves (Lomas Bayas I).
The concession and permits of the operation/exploration are valid to the end of the life of the mine. The Mineral Resources (Measured and Indicated) are 86Mt due to changes in metal prices and operational cost. In 2014 there were no Mineral Resources additional to the Ore Reserves statement.
11 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Mineral Resources and Ore Reserves estimation has been completed using Ordinary Kriging on a block model that includes historic drill holes totalling 317,277m and sampled at 2m intervals. Ore Reserves are as of 31 December 2015 using projected topography; operational pit life-of-mine developed in 2015; cut-off grade Heap: 0.281% CuT and ROM: 0.06% CuT. Lomas Bayas (I) Ore Reserves increased by 45Mt due to a decrease in cut-off grade as a result of lower consumable costs such as fuel, power and reagents. The Lomas Bayas (III) Mineral Resources estimates sulphides in a pit shell calculated using Measured, Indicated and Inferred Mineral Resources; Oxides-Mixed within this pit are also considered Mineral Resources that will eventually feed the SX/EW operation.
Coroccohuayco: The Coroccohuayco copper–gold skarn deposit is located 9km southeast of Tintaya. Together with Tintaya and Antapaccay this orebody is part of the Tintaya mineralised district. The main copper bearing minerals are bornite, chalcopyrite and chalcocite. The Coroccohuayco orebody is defined as a copper skarn deposit, which consists of Cretaceous sedimentary rocks of the Ferrobamba and Mara formation intruded by monzonitic plutons of the Eocene–Oligocene Andahuaylas–Yauri batholiths. The deposit geology model and Mineral Resources estimate has been updated at 31 December 2015. The major variations from the previous published Mineral Resources statement are due to the inclusion of new infill drilling to the updated geological model and block grade interpolate.
The SX/EW operation plant has a current life of mine that extends to 2028; permits for the operation are valid to the end of the life of the mine.
Punitaqui: Remaining life of mine reaches approximately 2 years based on Ore Reserves and 10 years based on Mineral Resources. Several epigenetic stratifiorm copper mineralisation (manto type) bodies with variable thicknesses between 20 to 40m are distributed along 900m strike length mineralised corridor named Cinabrio zone. Mineralisation is composed of crisocole, brochantita and malachite in upper oxide levels turning into a mixed zone composed of malachite, crisocole and chalcopyrite. Main sulphide zones are composed of pyrite, bornite and chalcopyrite. All mineralisation is distributed in calcareous shales also within minor pre-existing faults. Dalmacia deposit is located 7km south of the Punitaqui concentrator plant. Also described as a stratiform copper deposit the mineralisation occurs as irregular lenses of chalcopyrite, chalcocite and covellite sulphides within the porphyritic andestites of the reloj formation.
Lomas Bayas (II): This low grade Cu deposit is located 2km south of Lomas I pit, in the same district and geological environment as Lomas Bayas deposit. The main difference is a larger presence of water soluble copper oxides and lower geotechnical rock quality. The Lomas II block model includes historic drill holes totalling 122,723m and sampled at 2m intervals. Mineral Resources and Ore Reserves estimation has been completed using Ordinary Kriging. Ore Reserves are as of 31 December 2015, considering: operational pit life-of-mine developed in 2015; cut-off grade Heap: 0.333% CuT and ROM: 0.07% CuT. Mineral Resources as of 31 December 2015 considers economic pit shell at similar cut-off grade. The SX/EW operation plant has a current life of mine that extends to 2028; permits for the operation are valid to the end of the life of the mine.
Competent persons CM = Carlos Manchego, Employee of Glencore (AusIMM).
Antapaccay: The Antapaccay orebody is located 10km southwest of Tintaya, and together with Coroccohuayco is part of the Tintaya mineralised district. It is a sulphide mineralised system comprising disseminated, vein and fracture controlled chalcopyrite and bornite in altered quartz–monzonite and diorite in a limestone host rock, with some mineralised exoskarn areas and minor copper oxides and copper carbonates in the upper part of the deposit.
FM = Flavio Montini, Employee of Glencore (AusIMM). HB = Heller Bernabé, Employee of Glencore (AusIMM). MR = Mauricio Rubio, Employee of Glencore (AusIMM).
Antapaccay Ore Reserves and Mineral Resources as at 31 December 2015. Mineral Resource categorisation is based on assessment of orebody and grade continuity, structural complexity, data quality, adequacy of data coverage, and reasonable prospects of economical extraction. The Mineral Resources estimation is based on a block model with grade interpolation by using Ordinary Kriging. Mineral Resources are stated at defined internal copper cut–off, which is maintained at 0.15% TCu. Ore Reserves are then derived from Measured and Indicated Mineral Resources after applying economical and technical modifying factors. Ore Reserves decreased by 50Mt as a result of depletion and changes to the block model. The deposit geology model and Mineral Resources estimate has been updated in 2015 using a drill hole database that now includes over than 228,700m of total drilling data. The major variations from the previous published Mineral Resources statement are due to the inclusion of new infill drilling to the updated geological model and block grade interpolate. The Ore Reserves are for 15 years ending in 2030. From 2015 the plant is considered Tintaya plus Antapaccay. Operation permits are valid until the end of the life of mine. 12 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Australia Mineral Resources (Ernest Henry, Mount Isa, Cobar) Name of operation
Attributable Mining interest method
Ernest Henry Underground
100% UG
E1
OC
Monakoff
OC
Mount Isa 100% X41 Mine 500, 650, 1100 & 1900 Orebodies Enterprise Mine 3000 & 3500 Orebodies Open Pit Cobar
100%
UG UG OC UG
Total Australia
Commodity
Measured Mineral Resources 31.12.15 31.12.14
Indicated Mineral Measured and Resources Indicated Resources 31.12.15 31.12.14 31.12.15 31.12.14
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
(Mt) Copper (%) Gold (g/t) (Mt) Copper (%) Gold (g/t) (Mt) Copper (%) Gold (g/t)
16.1 1.29 0.67 4.6 0.70 0.20 – – –
16.8 1.37 0.71 4.6 0.70 0.20 – – –
71.0 1.15 0.59 5.5 0.75 0.23 2.4 0.95 0.30
59.0 1.23 0.65 5.5 0.75 0.23 2.4 0.95 0.30
87.1 1.17 0.60 10.1 0.73 0.22 2.4 0.95 0.30
75.8 1.26 0.66 10.1 0.73 0.22 2.4 0.95 0.30
9.0 1.1 0.5 0.4 0.9 0.3 0.1 0.8 0.2
8.3 1.1 0.6 0.4 0.9 0.3 0.1 0.8 0.2
CS
(Mt) Copper (%) (Mt) Copper (%) (Mt) Copper (%) (Mt) Copper (%) Silver (g/t) (Mt) Copper (%) Gold (g/t) Silver (g/t)
24.9 1.93 21.9 2.90 48 1.46 3.0 5.96 23.0 119 1.89 0.10 0.6
30.9 1.88 28.0 2.92 48 1.46 2.9 6.23 23.0 131 1.94 0.10 0.5
15.4 1.83 3.4 2.75 82 1.32 2.5 5.42 25.0 182 1.36 0.24 0.3
15.2 1.80 2.6 2.62 82 1.32 2.7 5.19 24.0 169 1.39 0.24 0.4
40.3 1.90 25.2 2.88 130 1.37 5.6 5.71 24.2 301 1.57 0.18 0.5
46.1 1.85 30.7 2.89 130 1.37 5.7 5.73 23.5 301 1.63 0.18 0.4
6.5 1.7 0.5 2.7 138 0.89 6.4 5.6 21 161 1.1 0.03 0.8
7.1 1.6 0.4 2.3 138 0.89 6.7 5.8 22 161 1.1 0.03 0.9
RO
CS
CS
HC CD JH
Australia Ore Reserves (Ernest Henry, Mount Isa, Cobar) Name of operation
Attributable Mining interest method
Ernest Henry Underground
100%
Mount Isa 100% X41 Mine 500, 650, 1100 & 1900 Orebodies Enterprise Mine 3000 & 3500 Orebodies Cobar 100%
Total Australia
Commodity
Proved Ore Reserves 31.12.15 31.12.14
Probable Ore Reserves 31.12.15 31.12.14
Total Ore Reserves 31.12.15 31.12.14
Competent person
UG
Ore (Mt) Copper (%) Gold (g/t)
10.9 1.17 0.60
11.0 1.14 0.59
47.0 1.03 0.53
53.3 1.00 0.52
57.9 1.06 0.54
64.3 1.03 0.53
AC
UG
Ore (Mt) Copper (%) Ore (Mt) Copper (%) Ore (Mt) Copper (%) Silver (g/t) (Mt) Copper (%) Gold (g/t) Silver (g/t)
8.0 1.91 12.3 2.64 3.2 4.43 17.7 34 2.17 0.19 1.6
6.1 1.91 14.5 2.90 3.1 4.30 16.8 35 2.29 0.19 1.5
7.5 1.78 1.8 2.51 2.6 4.04 17.7 59 1.30 0.42 0.8
12.6 1.81 0.9 2.57 2.3 3.63 16.1 69 1.26 0.40 0.5
15.5 1.85 14.1 2.62 5.8 4.25 17.7 93 1.63 0.34 1.1
18.7 1.84 15.4 2.88 5.4 4.02 16.5 104 1.61 0.33 0.9
GC
UG UG
GC DH
13 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Notes Ernest Henry Underground: The current expected mine life is 10 years (completion in 2025) with the Mining Lease tenements due to expire in 11 years (2026).
Mount Isa Open pit: The expiry date of relevant concession licences occurs in 2036. Copper mineralisation occurs generally as breccia hosted massive to disseminated copper minerals in “silica dolomite” altered pyritic dolomitic siltstone. Approximately half of the Mineral Resources are defined by primary chalcopyrite, the remainder being oxidised or partially oxidised, with a minor amount of supergene chalcocite mineralisation. The 2015 Mineral Resources remain unchanged from 2014 and are reported inside an optimised pit shell using a cut-off grade of 0.5% Cu.
Copper and gold mineralisation occurs in a breccia comprised of strongly altered and replaced intermediate volcanic fragments in a matrix assemblage of predominantly magnetite, chalcopyrite and carbonate. Copper occurs as chalcopyrite and gold is strongly associated with chalcopyrite. Net of mining depletion, sterilisation and additions from a reduction in cut-off grade, the updated Mineral Resource has had an overall increase of 12.0Mt since 31 December 2014.
Cobar: The expected remaining life of mine is approximately 5 years based on Ore Reserves and approximately 10 years based on Mineral Resources, although Cobar has previously been able to extend its expected life of mine through exploratory drilling over the past 50 years. The expiry date of relevant mining/concession licences is 24 June 2028.
Net of depletion for mining over the year, and changes in draw strategy and mine design, the Ore Reserve has decreased by 6.4Mt since 31 December 2014. E1: Mining of the reserve was completed in early 2014. The expiry date of relevant tenements is 31 December 2032.
Economic mineralisation at Cobar occurs mostly as narrow lenses with short strike lengths that are depth extensive. Lenses consist of vein or semi massive to massive chalcopyrite hosted by sub-vertical quartz-chlorite shear zones within a siltstone unit. The Cobar Mineral Resource is reported within five ‘systems’: Western, Eastern, QTS North, QTS South and QTS Central.
Economic mineralisation at E1 occurs as breccia-hosted mineralisation within the footwall volcanics at E1 North, and as strata-bound, replacement style mineralisation within the mineralised sedimentary units at E1 North, Central, South and East. Monakoff: As per 2014, Monakoff and Monakoff East remain excluded from the Ore Reserves. The expiry date of relevant tenements is 31 October 2032.
The increase in Ore Reserve tonnage is primarily due to an increase in QTS North Measured and Indicated Mineral Resources. The increase in grade of the reserve is a result of revised dilution and recovery factors.
Economic mineralisation at Monakoff and Monakoff East occurs in very-fine to medium grained steeply dipping metasediment units.
Competent persons AC = Alexander Campbell, Glencore Copper (AusIMM).
Mount Isa X41 Copper Mine: Mineralisation occurs generally as breccia hosted massive to disseminated chalcopyrite in “silica dolomite” altered pyritic dolomitic siltstone. Mining depletion, sterilisation and changes to mine design amounted to a 3.2Mt reduction in Ore Reserves.
CD = Chris De-Vitry, Quantitative Group (AusIMM). CS = Colin Stelzer, Glencore Copper (AusIMM). DH = Daniel Howard, Glencore Copper (AusIMM).
Mount Isa Enterprise Copper Mine: Mineralisation occurs generally as breccia hosted massive to disseminated chalcopyrite in “silica dolomite” altered pyritic dolomitic siltstone. Mining depletion, sterilisation and mine design changes amounted to a 1.3Mt reduction in Ore Reserves. The reduction in the reserve grade results from improved long term design processes aligning with short term detailed design standards.
GC = Gibson Chitumbura, Glencore Copper (AusIMM). HC = Helen Coackley, Glencore Copper (AusIMM). JH = Jason Hosken, Glencore Copper (AusIMM). RO = Rhonda O’Sullivan, Glencore Copper (AusIMM).
The underground life of mine estimate for the X41 and Enterprise Mines is 6 years (2021) with the tenements due to expire in 21 years (2036).
14 Glencore - Resources & Reserves Report 2015
Metals and Minerals Copper
Other projects Mineral Resources Name of operation
Attributable Mining interest method
El Pachón
100%
West Wall 50% Copper Project
Total Other projects
OC
Commodity
(Mt) Copper (%) Silver (g/t) Molybdenum (%) (Mt) Copper (%) Gold (g/t) Molybdenum (%) (Mt) Copper (%) Gold (g/t) Silver (g/t) Molybdenum (%)
Measured Mineral Resources 31.12.15 31.12.14
534 0.67 2.4 0.013 – – – – 534 0.67 – 2.4 0.01
530 0.67 2.4 0.013 – – – – 530 0.67 – 2.4 0.01
Indicated Mineral Measured and Indicated Inferred Mineral Resources Mineral Resources Resources Competent 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
1,054 0.49 2.1 0.011 495 0.55 0.05 0.009 1,549 0.51 0.02 1.4 0.01
1,050 0.49 2.0 0.011 495 0.55 0.05 0.009 1,545 0.51 0.02 1.4 0.01
1,588 0.55 2.2 0.012 495 0.55 0.05 0.009 2,083 0.55 0.01 1.7 0.01
1,580 0.55 2.1 0.012 495 0.55 0.05 0.009 2,075 0.55 0.01 1.6 0.01
1,509 0.41 1.8 0.009 970 0.48 0.05 0.008 2,479 0.44 0.02 1.1 0.01
1,700 0.40 2.0 0.010 970 0.48 0.05 0.008 2,670 0.43 0.02 1.3 0.01
FM
MMV
Notes El Pachón: Located in the southwest of San Juan Province of Argentina, the El Pachón orebody is a porphyry coppermolybdenum deposit in which two major stages of sulphide mineralisation contributed to the formation of the orebody. The bulk of the ore takes the form of disseminated Chalcopyrite-Molibdenite primary sulphides on top which an immature, relatively small copper enrichment blanket has been developed. In this upper part of the deposit Chalcocite and minor Covellite are partially replacing the primary Chalcopyirite ore. Mineral Resources stated herein are based on assay and geology information from 126,000m of mainly diamond drill holes. Mineral Resources have been classified using a combination of criteria including geological continuity and Kriging parameters. Mineral Resources are constrained by the use of an economic pit shell determined using Measured, Indicated and Inferred Mineral Resources and current assumption for the economic and technical modifying factors conditioning the resource pit.
Tampakan: Glencore sold its stake in the Tampakan Copper Gold Project during 2015.
Competent Persons FM = Flavio Montini, Employee of Glencore (AusIMM). MMV = Manuel Machuca Valderrama, Employee of Anglo American for the West Wall Project (AusIMM).
West Wall: The West Wall Copper Project is located in central Chile’s Valparaiso Region, 100km northeast of Santiago and 70km north of the Rio Blanco – Los Bronces mineral district. Glencore and Anglo American each have a 50% interest in the mining company West Wall SCM which holds the project. Porphyry copper style hydrothermal alteration covers a large area of approximately 7km by 3km. Exploration activities have focused in the south of the prospect at Lagunillas and West Wall North, where drilling has outlined copper sulphide Mineral Resources associated with porphyry intrusive bodies. Mineral Resources have been classified using a combination of criteria including geological continuity and Kriging parameters. Mineral Resources are constrained by the use of an economic pit shell, determined using Indicated and Inferred Mineral Resources and current assumption for the economic and technical modifying factors conditioning the limits of the resource pit.
15 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc Kazzinc Mineral Resources Name of operation
Attributable Mining interest method
Vasilkovskoye 69.7% (Gold) Komarovsky 69.7% (Gold) Total Gold Kazzinc
OC
Maleevsky
69.7%
OC
Ridder-Sokolny 69.7%
UG
Tishinsky
69.7%
UG
Shubinsky
69.7%
UG
OC
Staroye Tailings 69.7% Dam Shaimerden Stockpiles Dolinnoe
69.7%
OC
69.7%
UG
Obruchevskoe
69.7%
UG
Chashinskoye Tailings Dam
69.7%
OC
Zhairemsky Zapadny
69.7%
Commodity
(Mt) Gold (g/t) (Mt) Gold (g/t) (Mt) Gold (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Silver (g/t) Gold (g/t) (Mt) Zinc (%) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
Measured Mineral Resources 31.12.15 31.12.14
61.5 2.2 – – 61.5 2.2 6.58 6.51 1.04 2.33 79 0.6 17.3 1.5 0.7 0.8 24.3 1.9 2.94 7.84 1.76 0.78 11.6 0.66 0.85 3.2 0.5 2.2 24.8 0.64 – – – – – – – – – – – – – – – – – – – – – – – –
85.6 1.9 – – 85.6 1.9 8.6 6.9 1.1 2.4 77 0.6 17.8 1.5 0.7 0.8 23.7 1.9 5.2 8.2 1.8 0.7 14.3 0.7 1.8 2.4 0.4 1.4 17.6 0.54 – – – – – 0.71 4.13 2.06 0.59 164 11.0 2.66 11.1 4.87 1.16 81.2 2.2 – – – – – – –
Indicated Mineral Resources 31.12.15 31.12.14
22 2.2 – – 22 2.2 5.0 6.8 1.2 1.9 71 0.6 14 1.3 0.5 0.7 27 1.6 3.6 6.3 1.2 0.6 10 0.7 0.36 2.0 0.3 1.9 21 0.9 2.4 11 1.0 1.9 22 2.4 2.4 1.2 0.3 67 6.3 4.1 10.5 4.8 1.0 62 1.8 58 5.2 0.7 23 4.3 2.6 28
28 1.9 20 2.0 48 1.9 5.6 6.8 1.2 1.9 71 0.6 15 1.3 0.5 0.7 26 1.7 2.8 6.1 1.2 0.6 10 0.7 0.91 1.9 0.4 1.1 14 0.4 2.4 11 1.0 2.0 22 1.1 2.7 1.4 0.4 130 8.1 1.4 7.1 2.3 1.2 43 0.7 58 5.2 0.7 – – – –
Measured and Indicated Resources 31.12.15 31.12.14
83 2.2 – – 83 2.2 12 6.6 1.1 2.2 75 0.6 31 1.4 0.6 0.7 26 1.8 6.6 7.0 1.5 0.7 11 0.7 1.2 2.9 0.4 2.1 24 0.7 2.4 11 1.0 1.9 22 2.4 2.4 1.2 0.3 67 6.3 4.1 10.5 4.8 1.0 62 1.8 58 5.2 0.7 23 4.3 2.6 28
113 1.9 20 2.0 133 1.9 14 6.9 1.1 2.2 75 0.6 33 1.4 0.6 0.7 25 1.8 8.1 7.4 1.6 0.7 13 0.7 2.7 2.2 0.4 1.3 16 0.5 2.4 11 1.0 2.0 22 1.8 3.3 1.7 0.5 140 9.2 4.1 9.7 4.0 1.2 68 1.7 58 5.2 0.7 – – – –
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
7.6 1.9 28 1.5 36 1.6 6.2 7 2 2 75 0.6 6 1 0.5 1 22 2 1.7 6 0.5 0.5 7 0.5 0.2 2 0.4 1 17 0.3 1.4 10 0.8 – – 4.4 1 1 0.3 76 6 2.9 3 1 0.6 48 0.7 30 5 0.5 1 4 3 33
11 1.6 4.4 2.0 15 1.7 6.4 8 2 2 60 0.4 6 1 0.5 1 22 2 0.8 5 1 0.6 7 0.4 1.0 2 0.5 1 10 0.4 1.4 10 0.8 – – 1.2 2 1 0.3 80 6 1.1 4 1 0.9 100 0.9 30 5 0.5 28 4 1 –
AC AC
AC
AC
AC
AC
AC
AC AC
AC
AC
AC
16 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Kazzinc Mineral Resources (continued) Name of operation
Attributable Mining interest method
Zhairemsky Dalnezapadny
69.7%
OC
Zhairemsky Ushkatyn
69.7%
OC
Novo35.5% Leninogorskoye
OC
Total Polymetallic Kazzinc
Commodity
Measured Mineral Resources 31.12.15 31.12.14
(Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t)
– – – – – – – – – – – – – – 27.7 3.42 0.89 1.20 36.0 1.42
– – – – – – – – – – – – – – 36.8 4.50 1.26 1.21 41.4 1.56
Indicated Mineral Resources 31.12.15 31.12.14
34 4.9 1.4 6.7 3.5 0.1 7.1 43 – – – – – – 152 2.8 1.1 0.2 17 0.6
Measured and Indicated Resources 31.12.15 31.12.14
– – – – – – – – – – – – – – 89 1.5 0.3 0.3 15 0.9
34 4.9 1.4 6.7 3.5 0.1 7.1 43 – – – – – – 180 2.9 1.1 0.3 20 0.7
– – – – – – – – – – – – – – 126 2.4 0.5 0.6 23 1.1
Inferred Mineral Resources Competent 31.12.15 31.12.14 person
– – – – 0.2 0.2 8 20 40 4 1 0.2 33 2 94 3 0.7 0.3 28 2
45 4 1 – – – – – 40 4 1 0.2 33 2 160 3 0.8 0.2 14 1
AC
AC
AC
Kazzinc Ore Reserves Name of operation
Attributable Mining interest method
Vasilkovskoye (Gold) Maleevsky
69.7%
OC
69.7%
UG
Ridder-Sokolny
69.7%
UG
Tishinsky
69.7%
UG
Shubinsky
69.7%
UG
Shaimerden 69.7% Stockpiles Total Polymetallic Kazzinc
OC
Commodity
Ore (Mt) Gold (g/t) Ore (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Ore (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Ore (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Ore (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Ore (Mt) Zinc (%) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t)
Proved Ore Reserves 31.12.15 31.12.14
64.2 2.0 5.0 5.0 0.8 1.7 57.2 0.5 8.6 1.2 0.6 0.5 19.7 1.6 0.61 6.99 1.86 0.66 10.2 0.48 0.22 3.5 0.5 2.0 23 0.4 – – 14.4 2.80 0.72 0.95 32.3 1.15
70.7 2.20 7.1 5.4 0.8 1.8 58.6 0.5 9.4 1.2 0.5 0.6 19.7 1.7 1.6 6.9 1.5 0.6 9.7 0.6 – – – – – – – – 18.1 3.35 0.71 1.07 34.1 1.12
Probable Ore Reserves 31.12.15 31.12.14
23 2.0 5.0 5.3 0.9 1.5 51 0.4 6.7 1.0 0.4 0.6 20 1.3 1.8 6.2 1.3 0.6 11 0.8 0.07 3.5 0.4 1.9 20 0.3 1.8 22 15 5.5 0.6 0.8 27 0.8
23 2.2 5.1 5.2 0.9 1.5 51 0.4 7.7 1.0 0.5 0.6 21 1.4 2.7 6.8 1.5 0.6 16 0.9 – – – – – – 1.9 22 17 5.4 0.7 0.8 26 0.9
Total Ore Reserves 31.12.15 31.12.14
87 2.0 10 5.2 0.8 1.6 54 0.4 15 1.1 0.5 0.6 20 1.5 2.4 6.4 1.4 0.6 11 0.7 0.3 3.5 0.5 2.0 22 0.4 1.8 22 30 4.2 0.7 0.9 29 1.0
94 2.2 12 5.3 0.8 1.7 55 0.4 17 1.1 0.5 0.6 20 1.6 4.3 6.9 1.5 0.6 14 0.8 – – – – – – 1.9 22 36 4.4 0.7 0.9 30 1.0
Competent Person
AC AC
AC
AC
AC
17 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Notes The Ore Reserve estimate of 2.4Mt shows a reduction of 1.9Mt from the 2014 estimate, due to 1.2Mt of mining and 700Kt of sterilised material located around old and unstable mine workings.
Remaining mine life: different for each mine, ranging from 5 to 20 years. Expiry date of relevant mining/concession licences: different for each mine, ranging from April 2016 to November 2030. There is a routine licence extension procedure in Kazakhstan which Kazzinc undertakes as required.
The mined material from Tishinsky during 2015 was 1.2Mt at 4.6% Zn, 0.9% Pb, 0.4% Cu, 10g/t Ag and 0.7g/t Au.
Vasilkovskoye: It is a gold deposit of epigenetic (stockwork) type and beresite subtype of deposits hosting ores of goldquartz formation.
Shubinsky: The polymetallic deposit is a syngenetic VMS deposit hosting ores of sulphide-polymetallic formation (with associated gold and silver).
Ore reconciliation processes led to the re-interpretation of the controlling structures and associated ore domains, therefore also changing ore distribution patterns and related Mineral Resource categorisation.
A new geological interpretation combined with new interpolation parameters generated much higher Cu grade than the previous model and enabled an economically viable core of tonnes, which now constitute the Ore Reserve. The resource cut-off was increased, in order to satisfy the “economical potential” requirements linked to a “Reserve–encompassing Resource”.
The Mineral Resource numbers reported are based on the new ore model, as constrained in the existing pit shell. Ore Reserves were estimated based upon updated Mineral Resource interpretation and interpolation parameters, as well as pit design.
The new model was tested through mining during 2015. A total of 150Kt, 2.5% Zn, 0.5% Pb, 1.4% Cu, 21 g/t Ag and 0.6 g/t Au was extracted.
The mined material from Vasilkovskoye during 2015 was 8.2Mt at 2.0g/t Au.
Shaimerden: The Shaimerden stockpile is composed of highgrade, crushed zinc oxide ore which is not amenable to the concentration process; it is directly sent to the Ridder Zinc refinery. Throughout 2015, 151Kt at 20.6% Zn was processed.
Komarovsky: It is a low-sulphide quartz (mesothermal) gold deposit located along the eastern exocontact of the Komarovskoye intrusion of granites and granodiorites. Primary mineralisation occurs within the north-south striking Komarovskoye fault zone and consists of steeply dipping quartz-carbonate-micaceous metasomatites hosted by schists. The overall strike length of Komarovsky is approximately 6,800m with individual mineralised zones generally 500-600m in length, 4-6m in width and up to 200m in depth.
Dolinnoe and Obruchevskoe: The Dolinnoe and Obruchevskoe deposits are situated in the centre and deepest south-eastern portions respectively of the Ridder mining district in the Rudnyi Altay geotectonic block. Gold is the main mineral of economic interest at Dolinnoe; veinletdisseminated polymetallic mineralisation predominates at Obruchevskoe.
Increase of the overall Mineral Resource is due to an updated interpretation of the ore zone, combined with new interpolation parameters.
Changes to the Mineral Resource tonnages and grade are due to a reinterpretation of the ore domains and interpolation parameters.
The proposed method of mineral processing of the sulphide material is still under investigation, which is why the Mineral Resource was downgraded to Inferred.
A feasibility study, regarding the mining of both deposits is underway.
Maleevsky: It is a typical syngenetic VMS deposit hosting ores of sulphide-polymetallic formation (with associated gold and silver).
Zhairemsky: The various iron, manganese, barite and polymetallic deposits of the Zhairemsky area, central Kazakhstan were discovered by geological and geophysical prospecting between the 1930s and 1960s. Between 1978 and 1995, some 22 million tonnes of low-grade zinc-lead ore including barite-dominated mineralisation were mined. As of 1996, focus was set on manganese and iron ore production. The Zhairemsky deposits were recently acquired by Kazzinc on the basis of their polymetallic value.
There are no material changes to the primary parameters used in the calculation of the 2015 Ore Reserve from the 2014 Ore Reserve estimate. Mineral Resource changes are the result of mining drawdown and continued exploration drilling during 2015. The mined material from Maleevsky during 2015 was 2.2Mt at 5.7% Zn, 0.8% Pb, 1.9% Cu, 55g/t Ag and 0.6g/t Au.
Confirmation drilling performed this year, enabled us to upgrade the Inferred to Indicated Mineral Resources, and generate individual pit shells, which constrain the resources. Shells were generated on benchmark costs, as well as using historical metallurgical recoveries, which will be confirmed by the on-going Feasibility study.
Ridder-Sokolny: The gold-polymetallic deposit is also VMS type of syngenetic deposits hosting ores of gold bearing sulphide-polymetallic formation. Mineral Resource changes are due to mining exploitation during 2015.
Novo-Leninogorskoye: The Novo-Leninogorskoye deposit is part of the Ridder-Sokolny group of VMS polymetallic deposits. Novo-Leninogorskoye was discovered in 1981 and was explored between 1981 and 1985. Two styles of mineralisation can be found at Novo-Leninogorskoye, barite-polymetallic and polymetallic with the mineralisation hosted by siltstones and quartzites.
For Ridder-Sokolny, Mineral Resources and Ore Reserves are reported as totals for Polymetallic and Cu-type mineralisation combined. The mined material from Ridder-Sokolny during 2015 was 1.6Mt at 1.9% Zn, 0.2% Pb, 0.6% Cu, 8g/t Ag and 1.9g/t Au. Tishinsky: It is a syngenetic VMS deposit of Au- and Agbearing sulfide polymetallic ores.
All Mineral Resources estimated at Novo-Leninogorskoye have been classified as Inferred due to a current lack of support for the sample data.
Tishinsky Mineral Resources are different from previous estimates, due to several factors, including reinterpretation of geological wireframes, sterilisation of resources, and ongoing exploration.
Competent person AC = Aline Côté, Project Manager, Glencore Zinc, (OGQ). 18 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Australia Mineral Resources (Mount Isa, McArthur River)
Name of operation
Mount Isa Black Star Open Cut
Attributable Mining interest method
OC
OC
George Fisher 100% South (P49) Orebodies
UG
North (L72) Orebodies
UG
Handlebar Hill Open Cut (primary)
OC
Handlebar Hill Open Cut (oxide)
OC
100%
UG
Total Mount Isa
McArthur River Open Cut
Indicated Mineral Resources 31.12.15 31.12.14
Measured and Indicated Resources 31.12.15 31.12.14
Inferred Mineral Resources Competent 31.12.15 31.12.14 Person
100%
Mount Isa Open Pit Excl. Black Star
Lady Loretta
Commodity
Measured Mineral Resources 31.12.15 31.12.14
(Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
10.7 5.41 4.26 72.8 45.3 4.13 3.95 80.9
12.6 5.30 4.04 66.0 46.1 4.09 3.94 80.7
2.0 3.6 2.7 46 191 3.6 2.7 57
2.2 3.4 2.6 45 200 3.4 2.7 56
13 5.1 4.0 68 236 3.7 2.9 62
15 5.0 3.8 63 246 3.6 2.9 61
0.8 5 4 70 120 3 2 50
1.5 6 3 60 130 3 2 50
BY
(Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
34.2 7.87 5.30 106 43.2 8.17 3.53 59.7 1.60 7.77 2.56 40.6 0.49 0.37 8.52 88.8 5.28 16.3 6.40 104 141 6.86 4.26 80.3
25.6 7.86 5.15 105 39.8 8.41 3.58 60.6 1.60 7.77 2.56 40.6 0.49 0.37 8.52 88.8 6.88 16.0 5.96 92.7 133 6.87 4.18 78.1
26 7.6 4.7 92 103 7.2 2.9 47 3.6 6.1 2.0 35 0.1 0.4 4.1 65 3.9 14 4.6 86 330 5.2 2.9 57
21 7.8 4.7 93 98 7.6 3.0 48 3.6 6.1 2.0 35 0.1 0.4 4.1 65 4.3 14 3.8 74 330 5.1 2.9 56
60 7.8 5.0 100 147 7.5 3.1 51 5.2 6.6 2.2 37 0.6 0.4 7.8 85 9.2 15 5.6 96 470 5.7 3.3 64
46 7.8 4.9 100 138 7.8 3.1 52 5.2 6.6 2.2 37 0.6 0.4 7.8 85 11 15 5.1 85 460 5.6 3.3 62
17 7 5 90 68 7 3 50 0.8 5 2 30 – – – – 0.3 11 5 90 210 5 3 50
23 7 5 90 98 7 3 50 0.8 5 2 30 – – – – 1.0 14 5 80 250 5 3 50
JL
(Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
118 10.2 4.81 48.6 – – – – 118 10.2 4.81 48.6
126 10.0 4.45 44.6 – – – – 126 10.0 4.45 44.6
52 8.7 4.2 44 8.3 14 5.6 58 60 9.4 4.4 46
53 8.6 3.8 39 8.3 14 5.6 58 61 9.3 4.0 42
170 9.7 4.6 47 8.3 14 5.6 58 180 9.9 4.7 48
179 9.6 4.3 43 8.3 14 5.6 58 190 9.8 4.3 44
– – – – – – – – – – – –
– – – – – – – – – – – –
BY
JL
BY
BY
NS
100%
Woyzbun South Zone
Total McArthur River
OC
UG
KM
KM
19 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Australia Ore Reserves (Mount Isa, McArthur River) Name of operation
Attributable interest
Mount Isa Black Star Open Cut
100%
George Fisher South (P49) Orebodies
100%
Mining method
Probable Ore Reserves 31.12.15 31.12.14
Total Ore Reserves 31.12.15 31.12.14
Competent Person
Ore (Mt) Zinc (%) Lead (%) Silver (g/t)
2.91 5.59 2.87 50.8
4.77 5.31 2.81 38.0
0.10 6.8 2.5 44
0.20 3.3 2.4 26
3.0 5.6 2.9 51
5.0 5.2 2.8 37
BY
UG
Ore (Mt) Zinc (%) Lead (%) Silver (g/t) Ore (Mt) Zinc (%) Lead (%) Silver (g/t) Ore (Mt) Zinc (%) Lead (%) Silver (g/t) Ore (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
7.31 6.23 4.99 98.2 14.6 7.87 3.92 66.1 0.49 0.37 8.52 88.8 5.18 14.5 5.90 97.0 30.5 8.27 4.49 77.9 49.4 12.1 5.66 57.5
8.90 5.72 4.60 93.8 19.8 7.19 3.48 59.0 0.49 0.37 8.52 88.8 6.79 13.1 5.01 77.0 40.8 7.55 3.96 67.5 54.6 11.8 5.39 54.1
9.0 6.3 4.8 93 35 6.9 3.4 56 – – – – 3.3 11 3.8 70 47 7.1 3.7 64 53 8.3 4.0 41
5.7 5.9 4.5 90 35 6.8 3.2 53 – – – – 4.2 13 3.2 61 45 7.2 3.4 58 49 8.4 3.9 38
16 6.3 4.9 95 49 7.2 3.6 59 0.49 0.37 8.52 88.8 8.5 13 5.1 87 78 7.5 4.0 69 102 10 4.8 49
15 5.8 4.6 92 55 6.9 3.3 55 0.49 0.37 8.52 88.8 11 13 4.3 71 86 7.4 3.6 63 103 10 4.7 47
JG
UG
Handlebar Hill Open Cut (oxide)
OC
100%
UG
100%
OC
Total Mount Isa
McArthur River
Proved Ore Reserves 31.12.15 31.12.14
OC
North (L72) Orebodies
Lady Loretta
Commodity
JG
BY
JN
DH
Notes Mount Isa Black Star Open Cut: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.
Approximately 85% of the lead-zinc-silver resource is primary sulphide; the remainder being considered as transitional (mixed primary sulphide and secondary oxide/carbonate) mineralisation. The Black Star Open Cut resource has been removed from the Isa Open Pit and is reported separately.
The Black Star Open Cut resource is additional to the Mount Isa Open Pit resource.
Pit optimisation was conducted using Measured, Indicated and Inferred Mineral Resources, and a pit shell was generated to constrain the Mineral Resource.
The resource mineralisation occurs inside a designed Stage 7 pit, of which Stage 5 sits wholly within, based on a pit optimisation utilising Measured and Indicated Resource blocks.
The copper resource inside the Isa Open Pit has not been included here; it is reported separately in the Copper section of this report. The Isa Open Pit is located on Mining Lease ML8058 which expires on 30 November 2036.
Mining is currently active within the Stage 5 pit which encompasses the remaining portion of the Reserve. A total of 3.2Mt at 4.8% Zn, 2.3% Pb and 55g/t Ag were depleted from the Ore Reserves in the 12 months to 31 December 2015 due to ongoing mining operations.
George Fisher Mine North (L72) & South (P49) Orebodies: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.
The Black Star Open Cut is located on Mining Lease ML8058 which expires on 30 November 2036. The current LOM plan predicts the Ore Reserves to expire in Q3, 2016.
Orebody and structural interpretation, modelling and classification of the Mineral Resource was completed on the basis of additional geological information and improved systems.
Isa Open Pit: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.
Changes to the Mineral Resources are due to geological modelling and the addition of new drilling information.
20 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Mine production for the period January 2015 to December 2015 totalled 3.8Mt at 6.9% Zn, 3.0% Pb and 56g/t Ag.
Mining activities are temporarily progressing at a reduced rate versus the previous mine plan, as announced by Glencore in October 2015.
Mining activities are temporarily progressing at a reduced rate versus the previous mine plan, as announced by Glencore in October 2015.
Mineral Resources and Ore Reserves are located within leases that are valid to 2043, with the current mine plan ending in 2034.
The mine plan results in a mine life to 2029. The mine is located on Mining Lease ML8058 which expires on 30 November 2036.
Competent persons BY = Ben Young, Mine Operations Manager, Glencore Zinc, (AusIMM).
Handlebar Hill Open Cut: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.
DH = Drew Herbert, Mining Consultant, The Minserve Group Pty Ltd, (AusIMM). JG = Johannes Grobler, Long Term Planning Superintendent, Glencore Zinc, (AusIMM).
The Handlebar Hill Open Cut resource is up dip of and additional to the George Fisher South resource.
JN = Joshua Northfield, Long Term Planning Engineer, Glencore Zinc (AusIMM).
Material from the oxidised portion of the mineralisation has been reported as a Mineral Resource and Ore Reserve following confirmation of an achievable treatment path.
JL = Johannes Lambrechts, George Fisher Mine Senior Geologist, Glencore Zinc, (AIG).
No depletion has occurred through mining during 2015.
KM = Kristian Masterman, Senior Mine Geologist, Glencore Zinc, (AusIMM).
The Handlebar Hill Open Cut is located on Mining Lease ML8058 which expires on 30 November 2036. The mine was placed in care and maintenance in July 2014.
NS = Nicholas Spanswick, Senior Mine Geologist, Glencore Zinc, (AIG).
Lady Loretta Lead-zinc-silver mineralisation occurs in a galena and sphalerite rich massive sulphide lens located in carbonaceous pyritic shales and siltstones. The deposit consists of a tight syncline dislocated by a number of major faults. The deeper and high grade portion of the deposit reaches 500m below the surface. Diamond drilling continued through 2015 in both grade control and resource classification. In total, 44 grade control holes, 57 resource holes and 4 geotechnical holes were drilled for a total of 13,000m. Drilling data has resulted in a reduction of the Mineral Resource. Mine production totalling 1.2Mt at 15.5% Zn, 5.1% Pb and 80g/t Ag respectively were depleted from the Ore Reserves and Mineral Resources for the period January 2015 to December 2015. The mine was placed on care and maintenance during the last quarter of 2015 with a view to restarting in the appropriate economic conditions. The LOM plan for Lady Loretta based on current Ore Reserves extends until 2021. The Mining Lease (ML5568) is current until 31 January 2026. McArthur River Mine Zinc-lead-silver mineralisation occurs predominantly as ultra-fine bedded parallel sphalerite and galena rich bands hosted by dolomitic and carbonaceous pyritic siltstones, graded beds and chaotic debris flow breccias. Mineral Resources and Ore Reserves are based on the approved mine plan. All relevant Modifying Factors for the conversion of Mineral Resources to Ore Reserves have been considered, with confidence levels in these factors reflected in the classification categories. There are no known issues that could materially affect the estimates. The Ore Reserves and Mineral Resources have been depleted by a total of 4.5Mt at 9.4% Zn and 3.6% Pb that were crushed during 2015. Changes beyond depletion were due to a resource model update and revised cut-off calculations. 21 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
North America Mineral Resources (Kidd Creek, Matagami, PD1, Errington, Vermilion, Hackett River, Bell, Granisle) Name of operation
Attributable interest
Mining method
Kidd Creek
100%
UG
Matagami 100% Bracemac-McLeod
UG
Commodity
Measured Mineral Resources 31.12.15 31.12.14
Indicated Mineral Resources 31.12.15 31.12.14
Measured and Indicated Resources 31.12.15 31.12.14
Inferred Mineral Resources 31.12.15 31.12.14
Competent Person
(Mt) Zinc (%) Copper (%) Silver (g/t)
13.4 4.50 2.01 52
15.4 4.50 2.07 52
1.1 6.1 1.6 44
0.83 5.8 1.4 36
15 4.6 2.0 51
16 4.6 2.0 51
3.4 7 2 60
3.4 7 2 60
BD
(Mt) Zinc (%) Copper (%) Silver (g/t) Gold (g/t) PD-1 100% OC/UG (Mt) Zinc (%) Copper (%) Silver (g/t) Gold (g/t) Errington 100% UG (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Vermilion 100% UG (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Hackett River 100% OC/UG (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Total Zinc North America (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Gold (g/t) Bell 100% OC (Mt) Copper (%) Gold (g/t) Granisle 100% OC (Mt) Copper (%) Gold (g/t) Total Copper North America (Mt) Copper (%) Gold (g/t)
2.38 5.55 1.28 17.4 0.35 0.55 4.22 0.82 19.7 0.13 6.70 3.94 1.10 1.15 52.0 0.84 2.80 4.22 1.16 1.34 52.6 0.91 – – – – – – 25.8 4.42 0.41 1.62 48.2 0.35 57.0 0.41 0.18 18.0 0.34 0.11 75.0 0.39 0.16
2.03 6.95 1.23 25.6 0.41 0.55 4.22 0.82 19.7 0.13 6.70 3.94 1.10 1.15 52.0 0.84 2.80 4.22 1.16 1.34 52.6 0.91 – – – – – – 27.5 4.51 0.39 1.68 49.5 0.33 57.0 0.41 0.18 18.0 0.34 0.11 75.0 0.39 0.16
4.1 7.3 1.2 30 0.8 1.0 5.0 1.3 20 – 2.3 4.3 1.3 1.1 55 0.8 0.4 5.3 1.3 1.1 56 1.1 27 4.5 0.6 0.5 130 0.3 36 4.9 0.5 0.7 107 0.4 200 0.4 0.2 55 0.3 0.1 255 0.4 0.2
4.4 7.3 1.3 30 0.7 1.0 5.0 1.3 20 – 2.3 4.3 1.3 1.1 55 0.8 0.4 5.3 1.3 1.1 56 1.1 27 4.5 0.6 0.5 130 0.3 36 4.9 0.5 0.7 107 0.4 200 0.4 0.2 55 0.3 0.1 255 0.4 0.2
6.5 6.7 1.2 25 0.6 1.6 4.7 1.1 20 – 9.0 4.0 1.2 1.1 53 0.8 3.2 4.4 1.2 1.3 53 0.9 27 4.5 0.6 0.5 130 0.3 62 4.7 0.5 1.1 83 0.4 257 0.4 0.2 73 0.3 0.1 330 0.4 0.2
6.4 7.2 1.3 28 0.6 1.6 4.7 1.1 20 – 9.0 4.0 1.2 1.1 53 0.8 3.2 4.4 1.2 1.3 53 0.9 27 4.5 0.6 0.5 130 0.3 63 4.7 0.5 1.1 82 0.4 257 0.4 0.2 73 0.3 0.1 330 0.4 0.2
0.16 7 2 20 0.6 – – – – – – – – – – – – – – – – – 60 3.5 0.5 0.4 150 0.2 60 4 0.5 0.5 140 0.2 100 0.4 0.1 20 0.3 0.1 120 0.4 0.1
0.10 17 2 30 0.5 – – – – – – – – – – – – – – – – – 60 3.5 0.5 0.4 150 0.2 60 4 0.5 0.5 140 0.2 100 0.4 0.1 20 0.3 0.1 120 0.4 0.1
JD/ GR*
GR
AC
AC
AC
BD
BD
22 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
North America Ore Reserves (Kidd Creek, Matagami) Proved Ore Reserves 31.12.15 31.12.14
Probable Ore Reserves 31.12.15 31.12.14
Total Ore Reserves 31.12.15 31.12.14
Name of operation
Attributable interest
Mining method
Kidd Creek
100%
UG
Ore (Mt) Zinc (%) Copper (%) Silver (g/t)
6.99 4.06 2.02 50
7.58 4.24 2.07 53
3.3 4.7 1.8 46
4.0 4.5 1.8 48
10 4.3 2.0 49
12 4.3 2.0 51
AM
Matagami Bracemac-McLeod
100% UG
Ore (Mt) Zinc (%) Copper (%) Silver (g/t) Gold (g/t) (Mt) Zinc (%) Copper (%) Silver (g/t) Gold (g/t)
1.21 6.24 1.29 16.9 0.37 8.20 4.38 1.91 45.1 0.05
1.01 6.39 1.06 21.9 0.36 8.59 4.49 1.95 49.3 0.04
4.2 6.8 1.1 27 0.6 7.5 5.9 1.4 35 0.4
1.5 5.9 1.0 14 0.4 5.5 4.9 1.6 39 0.1
5.4 6.7 1.1 25 0.6 16 5.1 1.7 40 0.2
2.5 6.1 1.0 17 0.4 14 4.6 1.8 45 0.1
AC
Total North America
Commodity
Competent Person
Notes Kidd Creek: Kidd Creek is a VMS Cu-Zn-Ag deposit. Mineralisation occurs within a rhyolitic volcanic/volcaniclastic sequence as massive sulphide lenses of dominantly pyrite-pyrrhotite-sphalerite-galena-rich ores that are underlain by copper (chalcopyrite) stringer zones.
(900m to 1,000m) is categorised as Inferred Mineral Resource. Upcoming diamond drilling early 2016 will likely upgrade this portion of the orebody to Indicated confidence category and hence bridge between McLeod Lower and Deep McLeod Deep lenses. Underground mining production started in May 2013. The Ore Reserves encompass, on average, 11% of external dilution and are meant to support a 2,700 tpd production for 2016, 2017 and decreasing to 2,200 tpd for the first quarter of 2018, which is currently the expected end of the mine life.
Ore Reserves are based on the approved mining plan to 9600ft depth. Mineral Resources and Ore Reserves changes are the result of mining drawdown, with some adjustments due to updated mine design, cost reductions, and commodity pricing changes.
Mine production for year 2015 was 0.9Mt grading 6.0% Zn, and 1.0% Cu, 19g/t Ag and 0.34g/ Au.
January to December 2015 production totalled 2.15Mt at 3.6% Zn, 1.9% Cu and 46g/t Ag.
The Bracemac-McLeod mine is contained on two mining leases expiring in April 2033.
The majority of Ore Reserve in the Probable category reflects geotechnical and economic uncertainty during the latter years of the mine plan, rather than geological uncertainty.
PD–1: The PD1 deposit is a polymetallic VMS deposit of the same age and derived from the same ore-forming hydrothermal system as the rest of the Matagami camp deposits. It is located 40km west of Glencore's Matagami concentrator and offices.
Mine life is anticipated to be 6.3 years (Early 2022). There are no known land tenure issues that could affect the production plan.
The PD1 deposit was discovered in 1974. A total of 50 historical drill holes were drilled between 1974 and 1984. In 2010, 25 additional holes were drilled in the upper portion of the deposit above 100m vertical depth, including 3 duplicate holes to validate the historical data. The deposit is located on a mining claim owned by Glencore Canada Corporation.
Bracemac-McLeod: The Bracemac-McLeod deposits comprise a cluster of polymetallic VMS lenses similar to other deposits mined historically in the Matagami mining camp, except for their generally thinner and complex morphology. The deposits are located 4.5km southeast of Glencore's Matagami concentrator, at depths ranging from 100m to 1,400m below the surface. The deepest deposit, the McLeod Deep lens, has been the focus of a feasibility study in 2015.
Errington: The Errington deposit is a polymetallic massive sulphide located in the Sudbury Basin, Ontario. The 5 lenses that make up this deposit are hosted by sedimentary rocks of the Vermilion Formation at the contact of the Onaping and Onwatin formations. The deposits formed by replacement of carbonate mounds and carbonaceous tuffs fuelled by heat from the Sudbury Igneous Complex. Additional enrichment and concentration of metals was provided by deformation from the South Range shear zone.
Ongoing delineation diamond drilling resulting to the addition of 1.2Mt of Mineral Resources, located mainly in the McLeod West and C lenses. The geological models and the resource block models for all Bracemac lenses (Main, KT and Upper) and McLeod A, B, C and West lenses were revised regularly in 2015 based on new information derived from underground delineation diamond drilling and geological mapping. For most massive to semi-massive sulphide lenses, there is significant lower grade stringertype mineralisation in the immediate footwall. These stringer zones are now categorised as Measured Mineral Resources. The lower extension of the McLeod B lens
Discovered in the 1920’s, the Errington underground development began in 1924 and ended in 1928. A total of 129,713t of ore were produced from Errington. In order to confirm both the morphology and grade of these historical resources based on 1,070 historical diamond drill holes, 175 supplementary diamond drill holes were carried 23 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
out for a total of 50,000m. The resources have been interpolated by ID2.
Bell/Granisle: Bell and Granisle are porphyry copper-gold deposits located at Babine Lake. The Babine deposits are associated with calc-alkaline magmatic rocks. They were formed in the roots of Eocene volcanoes built upon continental crust. Erosion has removed most of the poorly consolidated volcanic piles, exposing the mineral deposits.
Vermilion: The Vermilion deposit is a polymetallic massive sulphide located in the Sudbury Basin, Ontario. The 17 lenses that make up this deposit are hosted by sedimentary rocks of the Vermilion Formation at the contact of the Onaping and Onwatin formations. The deposits formed by replacement of carbonate mounds and carbonaceous tuffs fuelled by heat from the Sudbury Igneous Complex. Additional enrichment and concentration of metals was provided by deformation from the South Range shear zone.
Recorded past production from the Bell mine from 1972 to 1992 totalled 77.2Mt averaging 0.47% Cu with an average waste to ore ratio of 0.95:1. Past production for Granisle from 1966 to 1982 totalled 52.7Mt averaging 0.47% Cu with an average waste to ore ratio of 1.37.
Although discovered in the 1920’s, the Vermilion underground development only started between 1952 and 1957. A total of 22,172t of ore were hoisted at Vermillion and stockpiled circa since 1958. The stockpile was shipped to Kidd Creek for processing in 1992.
The latest Mineral Resource estimate does not include the additional 25 holes (12,260m) drilled in 2012. The results of the Pre-Feasibility Study delivered in May 2013 are still under review.
In order to confirm both the morphology and grade of these historical resources based on 609 historical diamond drill holes, 35 supplementary diamond drill holes were carried out for a total of 10,000m. The resources have been interpolated by ID2.
A life of mine of 19 years has been estimated, at a processing rate of 50,000 tonnes per day. There are no known land tenure issues and the mining leases are renewed yearly.
Competent persons
Hackett River Project: The Hackett River project is located in Nunavut, Canada, approximately 480km northeast of Yellowknife and 105km south–southwest of the community of Bathurst Inlet, which is located on the Arctic Ocean.
AC = Aline Côté, Project Manager, Glencore Zinc, (OGQ). AM = Adrianus Moerman, Principal Mine Engineer, Glencore Zinc, (APEO).
The Hackett River deposits are situated within the Slave Structural Province, a predominantly Archaean granitegreenstone-sedimentary terrain that lies between Great Slave Lake and Coronation Gulf. The deposits are typical of VMS deposits. Sulphide mineralisation occurs as tabular semi-massive to massive lenses. Stringer sulphide minerals are developed beneath the lower massive lenses in stratiform to pipe-like configurations. Stratiform disseminated sulphides envelop the massive sulphide and stringer zones.
BD = Benoit Drolet, Senior Resource Geologist, Glencore Zinc (APGO). GR = Gilles Roy, District Geologist, Glencore Zinc, (OGQ). JD = Julie Drapeau, Chief Mine Geologist, Glencore Zinc (OGQ). * The Competent Person for the Mineral Resource estimate at Bracemac-McLeod mine is Julie Drapeau. Concerning the McLeod Deep project, the Competent Person for the Mineral Resource estimate is Gilles Roy.
The four principal sulphide occurrences from west to east are the East Cleaver, Boot Lake, Main Zone, and Jo Zone deposits. These deposits were defined as economically viable mineable resources, following boundaries of open cut vs underground mining, through a Preliminary Economic Assessment prior to Glencore’s acquisition (2010). A PreFeasibility study is now underway and is revisiting both the mining methods and boundaries between open cut and underground; for these reasons the Mineral Resources are only distinguished through their categories instead of exploitation method. Following the exploration drilling campaign of 2013, which added 114 drill holes totalling 39,000m, we have undertaken the re-interpretation of an in situ resource using Zn equivalent values instead of considering a block dollar value. The resources have been interpolated by ID2.
24 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Other Zinc Mineral Resources (Los Quenuales, Illapa, Sinchi Wayra, AR Zinc, Perkoa, Rosh Pinah, Pallas Green)
Name of operation
Los Quenuales Iscaycruz
Attributable Mining interest method
UG/OC
0.77 9.50 0.73 0.34 32.0 1.53 3.56 1.20 0.37 158
3.7 6.4 0.7 0.4 39 15 2.5 0.4 0.3 100
3.1 7.7 0.8 0.3 40 8.5 3.6 1.6 0.4 210
4.6 6.5 0.6 0.4 36 15 2.5 0.4 0.3 100
3.9 8.0 0.8 0.3 38 10 3.6 1.5 0.4 200
0.8 7 0.9 0.5 20 3 2 0.5 0.3 170
9 5 0.7 0.1 10 13 4 1 0.4 200
AC
(Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
1.56 7.75 0.83 151 0.74 9.81 0.61 104
1.1 11.4 1.43 311 0.64 10.1 0.70 98.0
2.8 9.0 1.1 214 0.43 10 0.8 100
0.8 11 1.0 330 0.4 11 0.9 100
4.4 8.5 1.0 192 1.2 10 0.7 103
1.9 11 1.3 320 1.0 10 0.8 99
1.5 8 2 210 1.0 10 1 80
2.4 10 0.8 300 1.0 10 1 90
AC
(Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Silver (g/t)
0.2 8.3 0.6 176 0.47 11.8 1.91 127
0.18 8.46 0.45 186 0.60 9.47 2.35 234
0.2 7.5 0.6 260 3.7 9.1 1.2 79
0.2 8.0 0.7 270 0.5 9.4 2.1 200
0.4 7.9 0.6 218 4.2 9.4 1.3 84
0.4 8.2 0.6 230 1.1 9.4 2.2 220
0.8 7 1 300 1.5 9 1 80
0.8 7 1 300 1.4 9 2 200
AC
(Mt) Zinc (%) Lead (%) Silver (g/t) UG (Mt) Zinc (%) Lead (%) Silver (g/t) UG/OC (Mt) Zinc (%) UG (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) UG Zinc (%) Lead (%) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t)
0.37 2.43 2.04 58.1 2.46 7.96 8.59 187 2.10 17.4 2.02 7.88 1.72 29.1 – – – 10.8 9.75 2.61 0.06 89.7
0.50 2.32 1.99 55.6 0.99 9.42 9.68 215 1.71 17.5 2.59 7.58 2.21 38.7 – – – 10.6 9.36 2.11 0.08 111
1.0 2.5 2.5 62 0.8 11 10 175 2.7 12 6.7 8.3 1.6 25 – – – 37 6.1 1.0 0.16 81
2.6 2.3 1.9 51 1.0 9.9 15 168 4.0 13 8.2 7.7 1.8 24 – – – 29 6.9 1.7 0.15 99
1.4 2.5 2.4 61 3.3 8.8 9.0 184 4.8 14 8.7 8.2 1.6 26 – – – 48 6.9 1.4 0.14 83
3.1 2.3 1.9 52 2.0 9.7 12 191 5.7 14 11 7.7 1.9 28 – – – 40 7.5 1.8 0.13 102
0.02 1 4 80 0.1 11 7 160 2.3 11 4.4 7 1 26 44 7 1 59 7 1 0.1 24
1.6 2 2 50 1.5 7 6 100 2.3 11 5.2 7 1 32 44 7 1 80 6 1 0.1 55
AC
UG
UG
AC
AC
100% UG
UG
AC
100% OC
Aguilar
Perkoa
90%
Rosh Pinah
80.1%
Pallas Green 100% Tobermalug Zone Total Other Zinc
0.88 6.64 0.13 0.71 23.5 – – – – –
45%
Caballo Blanco
AR Zinc Aguilar Pit
Inferred Mineral Resources Competent 31.12.15 31.12.14 Person
(Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t)
UG
Porco
Sinchi Wayra Poopo
Indicated Mineral Measured and Resources Indicated Resources 31.12.15 31.12.14 31.12.15 31.12.14
97.6%
Yauliyacu
Illapa Bolivar
Commodity
Measured Mineral Resources 31.12.15 31.12.14
AC
AC EM
AH
25 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Other Zinc Ore Reserves (Los Quenuales, Illapa, Sinchi Wayra, AR Zinc, Perkoa, Rosh Pinah) Name of operation
Los Quenuales Iscaycruz
Attributable interest
UG/OC
UG
UG
UG
Probable Ore Reserves 31.12.15 31.12.14
Total Ore Reserves 31.12.15 31.12.14
Competent Person
Ore (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t) Ore (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t)
0.18 4.90 0.49 0.30 28.3 – – – – –
0.70 8.77 0.69 0.25 29.0 0.78 2.08 0.90 0.25 123
2.7 6.1 0.8 0.2 45 3.8 2.0 0.3 0.2 130
3.0 7.0 0.7 0.2 36 3.4 2.3 1.0 0.2 110
2.9 6.0 0.8 0.2 44 3.8 2.0 0.3 0.2 130
3.7 7.3 0.7 0.2 34 4.2 2.3 1.0 0.2 110
AC
Ore (Mt) Zinc (%) Lead (%) Silver (g/t) Ore (Mt) Zinc (%) Lead (%) Silver (g/t)
– – – – 0.16 6.24 0.45 118
0.23 9.68 1.16 245 0.09 7.50 0.63 115
0.93 9.2 1.1 234 0.70 6.7 0.5 75
0.66 10 1.4 290 0.62 8.0 0.5 74
0.93 9.2 1.1 234 0.86 6.6 0.5 83
0.89 10 1.3 280 0.70 8.0 0.6 79
AC
Ore (Mt) Zinc (%) Lead (%) Silver (g/t) Ore (Mt) Zinc (%) Lead (%) Silver (g/t)
0.03 7.8 0.4 150 0.07 8.98 1.46 104
0.02 8.80 0.37 188 0.04 8.03 3.10 399
0.08 7.1 0.6 170 0.32 11 1.4 92
0.09 7.0 0.6 210 0.42 8.0 1.8 190
0.11 7.3 0.6 165 0.39 11 1.4 94
0.10 7.3 0.6 210 0.46 8.0 1.9 210
AC
Ore (Mt) Zinc (%) Lead (%) Silver (g/t) Ore (Mt) Zinc (%) Ore (Mt) Zinc (%) Lead (%) Silver (g/t) (Mt) Zinc (%) Lead (%) Copper (%) Silver (g/t)
1.12 7.87 8.78 194 1.10 18.0 0.83 10.0 1.52 32 3.49 11.4 3.26 0.02 80.1
0.66 10.5 11.7 245 0.99 15.0 1.25 8.45 2.31 45 4.76 9.14 2.57 0.08 88.4
0.41 10 11 151 2.2 14 4.9 8.8 1.7 24 16 7.4 1.1 0.1 69
0.68 7.9 12 215 2.9 12 5.3 8.9 1.7 23 17 7.6 1.5 0.1 64
1.5 8.5 9.2 182 3.3 15 5.7 9.0 1.6 25 20 8.1 1.5 0.1 71
1.3 9.2 12 230 3.8 13 6.5 8.8 1.8 27 22 8.0 1.7 0.1 69
AC
AC
AC
100% UG
Caballo Blanco
UG
AR Zinc Aguilar
100%
Perkoa
90%
UG/OC
Rosh Pinah
80.1%
UG
Total Other Zinc
Proved Ore Reserves 31.12.15 31.12.14
45%
Porco
Sinchi Wayra Poopo
Commodity
97.6%
Yauliyacu
Illapa Bolivar
Mining method
UG
AC
AC PC
26 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
Notes Iscaycruz: Zinc, lead and copper mineralisation are exposed as subvertical massive sulphide orebodies; described as skarn, breccias and carbonate replacement type along 12km corridor hosted in clay-rich limestone and dolomite rocks. Hydrothermal mineralisation assemblages are mainly composed of sphalerite, galena, pyrite and chalcopyrite distributed in five production zones named Limpe Centro, Chupa, Tinyag II, Tinyag I and Santa Este from north to south.
Caballo Blanco operational unit consists of three mines: Colquechaquita, Reserva and Tres Amigos, supplying the central plant “Don Diego” situated close to Potosi. The 2015 figures are based on a newly re-interpreted, re-interpolated block model which now takes into consideration spatial grade variation through the use of 3D modelling, which explains the important increase of the Mineral Resource tonnage. Increase of its Zn Reserve grade is due to better mining selectivity, linked to the combined use of 3D modelling and new financial assumptions.
The Inferred Mineral Resource has reduced by 8Mt: 6Mt due to the completion of internal technical studies on Limpe Norte which demonstrated a change in economic potential; the remaining 2Mt were upgraded to Measured and Indicated.
Regarding Bolivar, only the two main ore zones (Bolivar and Rosario) have been fully converted to 3D and reported; the Mineral Resource grades have decreased to the absence of the Nane zone. Full 3D conversion of Bolivar is still in progress and will be completed by next year.
The reductions of the Zn and Pb grades in Measured and Indicated are due to the conversion of lower grade Inferred material.
Production for the year 2015 to the end of December for each of the operations was:
The mine was placed on care and maintenance in November 2015 with a view to restarting in the appropriate economic conditions.
Bolivar – 0.31Mt grading 7.8% Zn, 1.0% Pb, 240 g/t Ag. Porco – 0.32Mt grading 5.6% Zn, 0.5% Pb, 79g/t Ag. Poopo – 0.10Mt grading 6.9% Zn, 0.5% Pb, 248g/t Ag.
Production for year 2015 to the end of December was 1.2Mt grading 7.1% Zn, 0.8% Pb, 0.5%Cu and 48g/t Ag.
Caballo Blanco – 0.33Mt grading 7.0% Zn, 1.0% Pb, 108g/t Ag.
The expected life of Iscaycruz is 2 to 3 years based on Ore Reserves and 3 to 5 years based on Mineral Resources. licences:
The expected life of the mines as a group, considering current production capacities, is an average of 2.5 years based on Ore Reserves and 7 to 10 years based on Mineral Resources.
Yauliyacu: Main mineralisation occurs as sphalerite, galena, tetrahedrite and chalcopyrite in 60° to 80° northwest dipping narrow veins, stockwork and minor replacement massive orebodies exposed in about 5km length extension and +2km depth extension. This hydrothermal mineralisation is strongly structurally controlled and hosted in folded rock units as calcareous sandstones (red beds), conglomerates, volcanic tuffs, andesites and limestones.
According to the new Bolivian Constitution enacted in 2009, natural resources belong to the Bolivian people. The Bolivian State can enter into mining contracts with private investors to operate them. As with all private investors in Bolivia, Illapa and Sinchi Wayra do not hold property rights over mining resources in the country, but rather hold the right to exploit them pursuant to Bolivian legislation.
Expiry date permanent.
of
relevant
mining/concession
Expiry date of relevant mining concessions / authorisations or contracts is different for each mine: Porco and Bolivar – July 2028 (joint venture agreement entered into in 2013), Poopo – January 2027 (lease agreement with a local cooperative entered into in 2002), and permanent in respect of Caballo Blanco.
Mineral Resource estimate methodology for two zones of Yauliyacu was changed from 2D polygonal to a 3D Ordinary Kriging estimate. There was an increase in continuity in these zones resulting in increased Indicated Mineral Resource tonnage. A systematic review of the mining voids in some of the remaining zones is currently being undertaken and has resulted in the temporary loss in confidence in a portion of the resource, this is reflected in the reduced Mineral Resource metal grades.
Aguilar: Mineralisation is classified as sedex type with sulphide layers in between siliciclastic and shale rocks with a postsecondary metasomatic over print between two intrusive stocks. Galena-rich, sphalerite, marmatite pyrite orebodies as lenses shape, locally brittle-style hydrothermal breccias, minor veinlets-stockworks and dissemination defines the economic portion of mineral inventories. Strike length extension of mineral geometries is variable and reaches up to 300m on north-south extension, about 55m in width and reaches up to 160m in depth.
Production for year 2015 to the end of December was 1.4Mt grading 2.2% Zn, 0.9% Pb and 81g/t Ag. The expected life of Yauliyacu is 3 to 4 years based on Ore Reserves and 10 to 12 years based on Mineral Resources. Expiry date permanent.
of
relevant
mining/concession
licences:
The decrease of the open-cut Mineral Resources is due to the constraining of the ore within a newly generated pit shell, representing different long-term pricing. Although demonstrating economic potential, the tonnes contained in this pit have not demonstrated economic certainty and were not converted to Reserves (the 2014 comparative states only the UG reserves, while last year’s reported 2014 was inclusive of the combined OC and UG tonnes). It is foreseen that these tonnes will most likely be converted in the next three years.
Illapa and Sinchi Wayra: The majority of the deposits within the Illapa and Sinchi Wayra portfolio are epigenetichydrothermal base metal type vein and fault filled mineralisation hosted within a variety of lithologies from volcanic tuffs to sedimentary packages. The main mineral assemblages are composed of sphalerite, marmatite, galena, silver rich galena and silver sulfosalts. The resources are usually based on multiple structures with Porco containing over 100 different veins. The typical dimensions of these structures is +500m in length and +450m depth profile with mineralisation open at depth; average vein widths from 0.2 - 4.0m.
The increase of the underground Mineral Resources is due to the re-interpretation of Piqué Inferior; subsequently it was 27 Glencore - Resources & Reserves Report 2015
Metals and Minerals Zinc
converted to Ore Reserves which have also increased for the underground portion of Aguilar.
Competent Person
Production for year 2015 to the end of December was 0.67Mt grading 4.9% Zn, 4.4% Pb and 101g/t Ag.
AH = Allan Huard, Senior Geologist, Glencore Zinc, (APGO).
AC = Aline Côté, Project Manager, Glencore Zinc, (OGQ).
EM = Eric Mouton, Technical Service Manager, Glencore Zinc, (SACNASP).
The remaining mine life is approximately 2 years based on Ore Reserves and 3-5 years based on Mineral Resources. Expiry date permanent.
of
relevant
mining/concession
PC = Phil Crowther, Long term Planning Consultant, Glencore Zinc, (PLATO).
licences:
Perkoa: Economic mineralisation at Perkoa occurs mainly as VMS lenses of sphalerite, galena, pyrite, and pyrrhotite. These massive sulphide lenses vary in width from 1m to 30m thick in places. These massive sulfide lenses dip at an average of 75°, striking northeast-southwest and consist of two main orebodies. Igneous intrusives have also caused endothermic and exothermic skarn like disseminated mineralisation of remobilised galena, pyrite, and to a lesser extent pyrrhotite and sphalerite. Changes were applied to the modifying factors of the reserve. A reduction to the internal dilution was validated on the basis of 2 years of mining combined with a proper validation of the actual total dilution, which it turn has led to an overall increase of the reserve grade. Production for year 2015 was 0.50Mt grading 18.4% Zn. Current expected life of mine is approximately 5 years based on Ore Reserves and approximately 6.5 years based on Mineral Resources. Expiry date of relevant mining/concession licences: 20 March 2027. Rosh Pinah: Sedimentary exhalative (SEDEX) and remobilised zinc and lead sulphide ores are contained within the socalled Ore Equivalent Horizon, a stratiform horizon that is extensively folded and thrusted, resulting in discreet, subvertical orebodies that vary in size from 0.4 - 8Mt. Metallurgical test work is underway to improve throughput and metal recoveries from the WF3 orebody and produce a saleable Cu concentrate by 2017. Mine production for the period January to December 2015 was 0.71Mt at 8.7% Zn and 2.1% Pb. Expected life of mine is 8.1 years based on Ore Reserves. Rosh Pinah has previously been able to extend its expected life of mine through exploratory drilling in the area covered by its concession. Potential Life of Mine based on the conversion of Inferred Mineral Resources is 9.9 years. The expiry date of ML 39+AW (Mining Licence and Accessory Works) is 11 February 2020. Pallas Green Project: The Pallas Green project is situated near Limerick in Southwestern Ireland. The Tobermalug zone consists of multiple, subhorizontal, stratiform lenses of Irish-type, breccia-hosted, sphalerite-galena-pyrite within a Carboniferous limestone. The lenses occur over an area 4,000m by 4,000m, and from 300m to 1,300m below surface. The Inferred Mineral Resource is based on 370,000m of diamond drilling in 735 drill holes completed between 2005 and the end of 2014. Drill spacing is nominally 100m but 178 infill drill holes at 50m spacing have been completed. Mineralisation wireframes were built taking into account a cut-off of Zn + Pb and a minimum 3.0m true thickness, and constrain interpolation by Inverse Distance Weighting (IDW) in a block model. No drilling was conducted in 2015, and there is no change in the Mineral Resource. 28 Glencore - Resources & Reserves Report 2015
Metals and Minerals Nickel Integrated Nickel Operations (INO) Mineral Resources (Raglan, Sudbury) Name of operation
Attributable Interest
Mining Method
Raglan
100%
UG
Sudbury
100%
UG
Total INO
Commodity
(Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t) (Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t) (Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t)
Measured Mineral Resources 31.12.15 31.12.14
5.77 3.92 0.94 0.08 0.98 2.29 9.86 1.81 1.92 0.04 1.01 1.10 15.6 2.59 1.56 0.05 1.00 1.54
Indicated Mineral Resources 31.12.15 31.12.14
5.06 3.49 0.88 0.08 0.90 2.22 11.1 1.83 2.08 0.04 1.01 1.14 16.2 2.35 1.70 0.05 0.98 1.48
12.69 3.25 0.97 0.07 0.96 2.41 18.67 2.42 1.15 0.06 0.50 0.54 31.4 2.76 1.08 0.06 0.69 1.30
9.34 3.24 0.97 0.08 0.93 2.32 18.4 2.41 1.22 0.06 0.53 0.56 27.7 2.69 1.14 0.07 0.66 1.15
Measured and Indicated Resources 31.12.15 31.12.14
18.5 3.46 0.96 0.07 0.97 2.37 28.5 2.21 1.42 0.05 0.67 0.73 47.0 2.70 1.24 0.06 0.79 1.37
14.4 3.32 0.94 0.08 0.92 2.29 29.5 2.19 1.54 0.05 0.71 0.78 43.9 2.56 1.34 0.06 0.78 1.28
Inferred Mineral Resources 31.12.15 31.12.14
18 3.0 0.9 0.1 0.9 2.3 15 1.9 3.0 0.1 1.1 1.3 33 2.5 1.8 0.1 1.0 1.8
21 3.2 0.9 0.1 1.0 2.3 18 1.8 2.5 0.1 0.9 1.0 39 2.6 1.6 0.1 1.0 1.7
Competent Person
DP
SEK
Integrated Nickel Operations Ore Reserves (Raglan, Sudbury) Name of operation
Attributable Interest
Mining Method
Raglan
100%
UG
Sudbury
100%
UG
Total INO
Commodity
Ore (Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t) Ore (Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t) (Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t)
Proved Ore Reserves 31.12.15 31.12.14
3.75 3.01 0.73 0.07 0.76 1.81 7.11 1.39 2.06 0.03 1.16 1.25 10.9 1.95 1.60 0.04 1.02 1.44
4.23 3.01 0.75 0.06 0.77 1.86 8.69 1.42 2.10 0.03 1.12 1.25 12.9 1.94 1.66 0.04 1.01 1.45
Probable Ore Reserves 31.12.15 31.12.14
6.68 3.05 0.77 0.06 0.89 2.04 3.89 1.47 0.79 0.04 0.30 0.31 10.6 2.47 0.78 0.05 0.67 1.40
2.49 3.88 0.88 0.08 1.00 2.25 4.58 1.37 0.76 0.04 0.48 0.41 7.1 2.25 0.80 0.05 0.66 1.06
Total Ore Reserves Competent 31.12.15 31.12.14 Person
10.43 3.04 0.76 0.06 0.84 1.96 11.00 1.42 1.61 0.03 0.85 0.92 21.4 2.21 1.20 0.04 0.85 1.43
6.72 3.33 0.80 0.07 0.85 2.00 13.3 1.41 1.64 0.03 0.90 0.96 20.0 2.05 1.36 0.04 0.88 1.31
PDG
SEK
29 Glencore - Resources & Reserves Report 2015
Metals and Minerals Nickel
Notes
Competent Persons
For the purposes of this statement, the term ‘Ore Reserves’ as defined by the JORC Code 2012 has the same meaning as ‘Mineral Reserves’ as defined in the CIM Standards 2014. The resource totals have been restated in compliance with the JORC Code.
DP = Daniel Patry, Glencore Nickel, P.Geo (OGQ). PDG = Philémon Desrochers-Gagnon, Glencore Nickel, P.Eng. (OIQ). SEK = Steve Kormos, Glencore Nickel, P. Geo. (APGO).
There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Reserves. Depending on when production is scheduled, Mineral Reserves and Resources are calculated using a blend of short, medium, or long term metal price assumptions and exchange rates. Raglan: Ni-Cu-Co-PGE mineralisation is located at or near the base of subvolcanic mafic-ultramafic intrusive complexes referred to as the “Raglan Formation”. Economic Ni-Cu-CoPGE mineralisation is composed of disseminated, nettextured, and massive pyrrhotite – pentlandite – chalcopyrite rich sulphides contained within more than 135 individual sulphide lenses, extending from surface to more than 750m vertical depth. The size of these high-grade sulphide lenses varies significantly from 0.01Mt to 5.2Mt, averaging 0.2Mt. In 2015, the significant and positive change in Mineral Reserves comes from the conversion of Indicated Mineral Resources to Probable Mineral Reserves for Mining Project 14 (+4Mt) and also from underground discoveries mostly at Kikialik and Qakimajurq (+1Mt); offsetting the annual mine production. Remaining life of mine is in excess of 20 years. Expiry date of relevant mining leases and exploration licenses: depending on the mine/project, range from 30 July 2017 to 17 August 2026. Sudbury: Sulphide deposits sit on broadly defined trends of mineralisation along basal brecciated rocks of the Sudbury Igneous Complex as pentlandite-pyrrhotite-chalcopyrite rich concentrations as well as within the underlying footwall in fractured pathways as chalcopyrite dominated polymetallic (Cu, Ni, Au, Ag, Pt, Pd) vein-style sulphides. The total Mineral Reserve and Resource tonnage decreased from 2014 due to production. Cut-off grades are calculated for each individual mine site or resource based on a metal equivalent or net smelter return value taking into account all recoverable metals. The current LOM plan based on Mineral Reserves extends to the end of 2021. Significant undeveloped Mineral Resources and exploration potential provide an opportunity to extend mine life well beyond 2021. All Land holdings in Sudbury covering existing Mineral Reserves and Resources are patented and 100% owned by Glencore with the exception of an area covered by two licences of occupation which are held in perpetuity and one mining lease which expires in 2033.
30 Glencore - Resources & Reserves Report 2015
Metals and Minerals Nickel
Murrin Murrin Mineral Resources Name of operation
Attributable Mining Interest Method
Murrin Murrin 100%
OC
Commodity
(Mt) Nickel (%) Cobalt (%)
Measured Mineral Resources 31.12.15 31.12.14
167.3 1.01 0.071
Indicated Mineral Resources 31.12.15 31.12.14
184.1 1.03 0.073
79.0 0.99 0.083
72.2 0.99 0.077
Measured and Indicated Resources 31.12.15 31.12.14
246.3 1.00 0.075
256.3 1.02 0.074
Inferred Mineral Resources 31.12.15 31.12.14
18 0.94 0.067
12 0.94 0.059
Competent Person
SK
Murrin Murrin Ore Reserves Name of operation
Attributable Mining Interest Method
Murrin Murrin
100%
Commodity
OC
Proved Ore Reserves 31.12.15 31.12.14
Ore (Mt) Nickel (%) Cobalt (%)
151.6 0.97 0.070
Probable Ore Reserves 31.12.15 31.12.14
160.4 0.97 0.069
39.9 0.96 0.069
40.0 0.96 0.067
Total Ore Reserves Competent 31.12.15 31.12.14 Person
191.6 0.97 0.069
200.4 0.97 0.069
KG/PW
Koniambo Mineral Resources Name of operation
Attributable Mining Interest Method
Koniambo
49%
OC
Commodity
(Mt) Nickel (%)
Measured Mineral Resources 31.12.15 31.12.14
18.1 2.48
Indicated Mineral Resources 31.12.15 31.12.14
20.0 2.55
29.1 2.42
46.0 2.44
Measured and Indicated Resources 31.12.15 31.12.14
47.2 2.44
66.0 2.48
Inferred Mineral Resources 31.12.15 31.12.14
95 2.5
84 2.5
Competent Person
NF
Koniambo Ore Reserves Name of operation
Attributable Mining Interest Method
Koniambo
49%
Commodity
OC
Proved Ore Reserves Probable Ore Reserves 31.12.15 31.12.14 31.12.15 31.12.14
Ore (Mt) Nickel (%)
14.2 2.33
16.2 2.50
Measured Mineral Resources 31.12.15 31.12.14
Indicated Mineral Resources 31.12.15 31.12.14
20.9 2.29
42.5 2.30
Total Ore Reserves 31.12.15 31.12.14
35.1 2.30
58.7 2.35
Competent Person
HD
Other Nickel Mineral Resources Name of operation
Attributable Mining Interest Method
Kabanga
50%
UG
Commodity
(Mt) Nickel (%) Copper (%) Cobalt (%) Platinum (g/t) Palladium (g/t)
13.8 2.49 0.34 0.21 0.16 0.19
13.8 2.49 0.34 0.21 0.16 0.19
23.4 2.72 0.36 0.19 0.42 0.28
23.4 2.72 0.36 0.19 0.42 0.28
Measured and Indicated Resources 31.12.15 31.12.14
37.2 2.63 0.35 0.20 0.32 0.25
37.2 2.63 0.35 0.20 0.32 0.25
Inferred Mineral Resources 31.12.15 31.12.14
21 2.6 0.3 0.2 0.3 0.3
21 2.6 0.3 0.2 0.3 0.3
Competent Person
SEK
31 Glencore - Resources & Reserves Report 2015
Metals and Minerals Nickel
Notes Kabanga: The current delineated Mineral Resource is comprised of 88% of contact-style massive sulphide and 12% of ultramafic-hosted disseminated to semi-massive sulphide mineralisation. The ultramafic bodies are hosted in a sequence of metamorphosed pelitic sediments that are overturned, steeply dipping. All resource estimates are done using Ordinary Kriging and are based on block models with appropriate variography. A cut-off grade of 1% Niequivalent is used for all Mineral Resources except ultramafic-hosted disseminated to semi-massive sulphide (UMIN) mineralisation at Tembo (1.1% Ni cut-off grade applied). The contribution to the Ni-equivalent value is provided by copper, cobalt and platinum group elements. The last Mineral Resource drilling campaign was done in 2009 and the latest Mineral Resource estimate dates from June 2010. The delineated Kabanga Mineral Resources are sufficient to support a 30 year mine life as currently studied. All resources are held under a Retention Licence which was renewed for an additional 5 year period on 02 May 2014.
For the purposes of this statement, the term ‘Ore Reserves’ as defined by the JORC Code 2012 has the same meaning as ‘Mineral Reserves’ as defined in the CIM Standards 2014. The Mineral Resource totals have been restated in compliance with the JORC Code. There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Reserves. Depending on when production is scheduled, Mineral Reserves and Resources are calculated using a blend of short, medium, or long term metal price assumptions and exchange rates. Murrin Murrin: Nickel and cobalt mineralisation at Murrin Murrin operation is hosted within a laterite formed from the weathering of ultramafic rocks. The resources are hosted in multiple deposits over three main project areas (North, South and East). Mineral Resource and Ore Reserve figures as at 31 December 2015 are generated by depletion of the resource models by using end-of-period surface surveys as at 30 September 2015, with adjustments applied for October to December production.
Portfolio changes: The following operations were sold in the course of the year: Cosmos (June 2015); Falcondo (August 2015); and Araguaia (September 2015).
The Murrin Murrin 2015 Ore Reserve estimate is based on the optimised Base Case pit shells for Measured and Indicated Mineral Resources, and includes scats and stockpiles. Updates to process modelling, triennial shutdown costs and operating costs have been included.
Competent Persons HD = Hubert Dumon, Koniambo Nickel SAS, (AusIMM). KG = Kellie Gill, Minara Resources Pty Ltd., (mining and metallurgical costs, reserve optimisation), (AusIMM).
Ore Reserve grades have been subject to the application of grade modifying factors. These have been derived from analysis of the previous two years mine-to-mill grade performance and result in grade modifying factors of 95% and 89% for nickel and cobalt respectively.
NF = Nicholas Fenner, Koniambo Nickel SAS, P.Geo (APGO). PW = Paul Wiltshire, Minara Resources Pty Ltd., (process plant modelling assumptions), (AusIMM). SK = Stephen King, Minara Resources Pty Ltd., (geostatistical analysis, modelling/estimation and resource classification), (AusIMM).
At the forecast throughput capacity of 4.5 million tonnes per annum, the project’s operating life is in excess of 30 years. Expiry dates for relevant tenements differ for each tenement and range from 2017 to 2037.
SEK = Steve Kormos, Glencore Nickel, P. Geo (APGO).
Koniambo: Nickel rich laterite deposits are developed on variably serpentinized ultramafic rocks. The Ore Reserve estimate for the deposit was established from a new Life of Mine Resource Model established in 2015, and has been adjusted to incorporate changes in ore classification, and actual completed production up to 30 September 2015, with adjustments applied for forecast production between October and December. Mineral Resources for the Life of Mine area have been calculated by 3D modelling and Conditional Simulation geostatistical methods and for those areas outside of this footprint by the plan polygonal method. The reserve cut-off grade used is 2.0% Ni. Expected mine life is 17 years. The expiry date of relevant mining property licences range from April 2017 to 31 December 2048. Production began in April 2013 and mining is supporting a one line operation at the Metallurgical Plant as at 31 December 2015. Ore Reserves stated include an estimated 468kt at 2.30% of stockpiles between the mine and process plant. Ore Reserves and Mineral Resources exclude an additional 26 million tonnes of medium grade material at 1.9% Ni below the current cut-off grade (< 2.0% Ni).
32 Glencore - Resources & Reserves Report 2015
Metals and Minerals Ferroalloys Chrome Mineral Resources
Name of operation
Attributable Mining interest method
Waterval Mine
79.5%
UG
Marikana West
79.5%
UG
Kroondal Mine
79.5%
UG/OC
Kroondal Gemini Marikana East
79.5%
UG/OC
79.5%
UG
Horizon Mine
79.5%
UG/OC
Boshoek Mine
79.5%
OC/UG
Thorncliffe Mine 79.5%
UG/OC
Helena Mine
79.5%
UG/OC
Wonderkop
79.5%
UG
Extension 9
79.5%
UG
De Grooteboom 79.5%
UG/OC
Klipfontein/ Waterval Total Chrome
UG
79.5%
Commodity
Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) (Mt) Cr2O3 (%)
Measured Mineral Resources 31.12.15 31.12.14
16.331 41.3 2.909 42.41 7.750 42.75 10.799 42.47 4.178 42.25 4.248 44.53 – – 38.906 40.61 23.786 39.75 – – – – 0.812 40.28 12.433 42.11 122 41.2
16.487 41.3 3.189 42.39 8.827 42.79 11.766 42.44 4.183 42.23 4.248 44.53 – – 41.627 40.59 22.987 39.96 – – – – 0.817 40.28 11.387 42.12 126 41.3
Indicated Mineral Resources 31.12.15 31.12.14
0.98 42.6 1.60 42.6 2.16 41.5 4.98 41.6 0.75 41.8 8.04 43.8 17.09 40.5 13.75 41.0 11.17 38.2 7.05 40.6 13.85 41.4 0.65 40.3 15.79 42.0 98 41.1
Measured and Indicated Resources 31.12.15 31.12.14
0.98 42.6 1.60 42.6 2.16 41.5 4.99 41.6 0.75 41.7 8.04 43.8 17.09 40.5 9.52 41.0 6.93 38.1 7.05 40.6 13.37 41.3 0.64 40.3 16.82 42.0 90 41.2
17.31 41.4 4.50 42.5 9.91 42.5 15.78 42.2 4.92 42.2 12.28 44.1 17.09 40.5 52.65 40.7 34.96 39.2 7.05 40.6 13.85 41.4 1.46 40.3 28.23 42.0 220 41.2
17.47 41.4 4.79 42.5 10.98 42.5 16.75 42.2 4.93 42.1 12.28 44.1 17.09 40.5 51.14 40.7 29.92 39.5 7.05 40.6 13.37 41.3 1.46 40.3 28.21 42.0 215 41.2
Inferred Mineral Resources Competent 31.12.15 31.12.14 Person
0.6 43 – – – – – – – – 2.4 44 – – 47.3 38 133.5 38 – – – – – – 116.0 42 300 40
0.6 43 – – – – – – – – 2.4 44 – – 34.1 40 85.8 39 – – – – – – 115.5 42 238 41
DR/MM DR/MM DR/MM DR/MM DR/MM DR/MM DR/MM DR/SV DR/SV DR/MM DR/MM DR/SV DR/MM
Chrome Ore Reserves Name of operation
Attributable interest
Mining method
Waterval Mine
79.5%
UG
Marikana West
79.5%
UG
Kroondal Mine
79.5%
UG/OC
Kroondal Gemini
79.5%
UG/OC
Marikana East
79.5%
UG
Horizon Mine
79.5%
UG
Boshoek Mine
79.5%
UG/OC
Thorncliffe Mine
79.5%
UG/OC
Helena Mine
79.5%
UG/OC
Klipfontein/ Waterval Total Chrome
79.5%
UG
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Commodity
31.12.15
31.12.14
31.12.15
31.12.14
31.12.15
31.12.14
Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) Ore (Mt) Cr2O3 (%) (Mt) Cr2O3 (%)
10.534 30.94 0.584 28.92 1.895 28.44 6.942 31.05 0.306 29.16 2.102 23.91 – – 22.413 36.94 3.640 34.73 0.232 25.94 49 33.5
10.737 30.93 0.777 28.87 2.548 28.87 7.774 31.00 0.005 28.89 2.102 23.91 – – 24.445 36.94 3.823 36.78 – – 52 33.8
0.91 26.0 – – 1.94 28.1 4.68 28.3 0.20 28.1 – – 0.58 26.1 7.80 37.9 0.18 30.6 0.29 27.3 17 32.6
0.91 26.0 – – 1.90 28.1 4.70 28.2 – – – – 0.58 26.1 5.94 35.5 – – – – 14 31.0
11.45 30.5 0.58 28.9 3.83 28.3 11.63 29.9 0.51 28.7 2.10 23.9 0.58 26.1 30.21 37.2 3.82 34.5 0.53 26.7 65 33.3
11.65 30.5 0.78 28.9 4.45 28.6 12.47 29.9 0.01 28.9 2.10 23.9 0.58 26.1 30.39 36.7 3.82 36.8 – – 66 33.2
Competent Person
DR/MM DR/MM DR/MM DR/MM DR/MM DR/MM DR/MM DR/SV DR/SV DR/MM
33 Glencore - Resources & Reserves Report 2015
Metals and Minerals Ferroalloys
Notes The tonnage and grade estimations are initiated by the geostatistical analysis of the exploration drill hole data. The outcomes of this analysis are used in the construction of block models for each and every mine and project area. The geostatistical analysis of the chromitite data indicates a high degree of continuity both in grade and thickness of the chromitite layers. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency to test the stability of the variograms used and the suitability of the selected cell sizes and Kriging parameters. Tonnages and grades are reported from these block models for each mine and project. There is a high degree of confidence in the tonnage and grade estimations derived from the block models. This is confirmed by the monthly and yearly reconciliation between the block model estimates, the monthly survey measurements and the actual mine production for each operating mine.
Tonnages are quoted as million metric tonnes. Grades are quoted as %Cr2O3. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves. The chromitite assets include those owned by Glencore and Merafe in different ownership percentages, the attributable interest in such assets remain as reflected. All Glencore Ferroalloys' chrome operations mine the chromitite deposits developed within the world renowned Bushveld Complex of South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGEs) in the world. The Bushveld Complex stretches 350km east-west and 450km north-south. The chrome ore is mined from shallow dipping (10o – 14o) tabular orebodies. Although there are numerous chromitite layers developed in the Bushveld Complex, the chromitite layers targeted for economic exploitation are the LG6/LG6A Chromitite Layer package and the MG1 Chromitite Layer.
The LOM for the operating chrome mines vary between 1 year and 6 years based on the declared Ore Reserves. The LOM periods for the various operating mines, based on all the Mineral Resources converted to Ore Reserves vary between 3 years and 38 years. The Mining Right expiry dates vary from 2022 to 2039 for the operating chrome mines. All the chrome mining rights were granted for an initial period of 30 years. The production rates for the various chrome mines vary from 34kt ROM per month to 110kt ROM per month. Horizon Mine has been put on care and maintenance.
No cut-off grades are applied to the chromitite layers currently being mined. The chromitite layer grades show exceptional regional grade consistency and continuity. The chromitite layers are mostly mined underground using trackless mechanised mining methods on a board and pillar mine layout design.
The Prospecting Rights are granted for an initial period of 5 years, extendable for an additional 2 periods of 3 years each. The project areas are mostly covered by Prospecting Rights and the current Prospecting Right periods vary from less than 1 year to 3 years. The Extension 9 Prospecting Right is in its’s final cycle of 3 years.
The Mineral Resources are estimated as chromitite tonnages and grades to reflect the grades of the various individual chromitite layers. Both the LG6 and MG1 Chromitite Layers which Glencore currently mine are discrete solid chromitite layers with sharp contacts. Changes in the year on year Mineral Resource tonnage and grade estimates are mainly due to mining depletion and changes due to additional geological information gained through exploration. These changes reflect in the tonnage and grade reports from the grade block models. The most significant changes are noted below.
Competent Persons PJG = Pieter-Jan Gräbe, Glencore Ferroalloys, (SACNASP); overall responsibility for Mineral Resources and Ore Reserves. SV = Solly Vaid, Glencore Ferroalloys, (PLATO); responsibility for Mineral Resources and Ore Reserves.
Thorncliffe: the Mineral Resources had a net increase of 18.0Mt. The main contributor to this change was the inclusion of the MG2 Chromitite Package resource tonnages to the tune of 17.0Mt. Mining depletions have been discounted.
DR
Helena: the MG2 Chromitite Package resource tonnages were added to the Helena resources and contributed 55.7Mt to arrive at a net Mineral Resource change of 54.0Mt. Mining depletions have been discounted.
= Dean Richards, Obsidian Consulting Services (SACNASP); responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.
MM = Mogomotsi Maputle, Glencore Ferroalloys, (SACNASP), Responsible for Mineral Resources and Ore Reserves.
Kroondal Mine: unmined and remnant mining areas have been removed from the 2015 Mineral Resource estimate. The total tonnage excluded is 0.9Mt. The net change in Kroondal resources is -0.7Mt. Mining depletions have been discounted.
34 Glencore - Resources & Reserves Report 2015
Metals and Minerals Ferroalloys
Vanadium Mineral Resources
Name of operation
Attributable Mining interest method
Rhovan
74.0%
OC
Commodity
(Mt) V2O5 (%)
Measured Mineral Resources 31.12.15 31.12.14
48.85 0.48
Indicated Mineral Resources 31.12.15 31.12.14
24.89 0.52
38.7 0.5
20.2 0.5
Measured and Indicated Resources 31.12.15 31.12.14
87.6 0.5
45.1 0.5
Inferred Mineral Resources 31.12.15 31.12.14
95 0.5
Competent Person
84 0.5
DR/SM
Total Ore Reserves 31.12.15 31.12.14
Competent Person
Vanadium Ore Reserves Name of operation
Attributable interest
Mining method
Rhovan
74.0%
OC
Commodity
Proved Ore Reserves 31.12.15 31.12.14
Ore (Mt) V2O5 (%)
26.66 0.48
6.88 0.52
Probable Ore Reserves 31.12.15 31.12.14
12.9 0.5
13.4 0.5
39.6 0.5
20.3 0.5
DR/SM
Notes Tonnages are quoted as million metric tonnes.
The tonnage and grade estimations were done using geostatistical analysis of the exploration drill hole and blast hole data. From this analysis the most appropriate parameters for the construction of block models for the various pits were derived. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency and Slope of Regression to test the stability of the variograms used and the suitability of the selected cell sizes. Other validations included a comparison of distributions of the source data versus estimated results as well as swath plots. Tonnages and grades are reported from the block models for each pit. The degree of confidence in the tonnage and grade estimations derived from the block models is reflected in the classified Mineral Resource classes.
Grades are quoted as %V2O5. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves. Glencore Ferroalloys' vanadium mining operations mine the vanadiferous magnetite deposits developed within the Bushveld Complex, South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGE’s) in the world. The magnetite ore is mined from shallow dipping (6o – 25o) stratified magnetite orebodies. Various ore zones with varying grades can be identified in the orebody. The ore zones are defined based on their magnetite and vanadium content.
The Rhovan LOM based on the declared Ore Reserves is 16.5 years. The LOM based on all the Mineral Resources converted to Ore Reserves is 33 years. Rhovan is mining from various open cast pits at a mining rate averaging 200kt of ROM per month. The Mining Right expiry date is 2027.
The magnetite ore is mined using open cast mining methods. Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, reclassification and changes in the Mineral Resource and Ore Reserve tonnages and grades due to additional geological information gained through exploration.
Competent Persons PJG = Pieter-Jan Gräbe, Glencore Ferroalloys, (SACNASP); overall responsibility for Mineral Resources and Ore Reserves.
Rhovan: There was a net increase of 56.2Mt in the Mineral Resource estimate after mining depletions have been discounted. This was mainly due to a lowering of the magnetite and V2O5 cut-off grades from 23.0% and 1.87% to 15% and 1.85% respectively. A further contribution was due to a correction of erroneous values in the geological database.
DR
The Ore Reserves had a net increase of 21.5Mt after mining depletions have been discounted. The correction in the Mineral Resources had the single biggest contribution to the increase in the Ore Reserves due to the inclusive reporting. Rhovan has completed a Whittle Pit Optimization exercise during the 2014 – 2015 reporting period, and is in the process of designing LOM pit shells based on the most appropriate pit optimization parameters.
= Dean Richards, Obsidian Consulting Services, (SACNASP); responsible for data validation, geo-statistical analysis of data, construction of tonnage and grade block models and reporting of tonnage and grades from block models for Mineral Resource and Ore Reserve estimates.
SM = Sydney Maseti, Glencore Ferroalloys, (SACNASP); Responsible for Mineral Resources and Ore Reserves.
Obsidian Consulting Services has estimated the Mineral Resources for Pit 1 and Pit 6. An updated grade block model was constructed during October 2015, following exploration drilling during the 2014 – 2015 reporting period.
35 Glencore - Resources & Reserves Report 2015
Metals and Minerals Ferroalloys
PGM Mineral Resources
Commodity
Measured Mineral Resources 31.12.15 31.12.14
UG/OC (Mt) 3PGE + Gold (g/t) UG/OC (Mt) 3PGE + Gold (g/t) UG/OC (Mt) 3PGE + Gold (g/t) UG/OC (Mt) 3PGE + Gold (g/t) (Mt) 3PGE + Gold (g/t)
29.191 32.394 4.15 4.13 55.957 56.884 4.49 4.49 – – – – – – – – 85 89 4.37 4.36
Name of operation
Attributable Mining interest method
Mototolo JV
37%
Eland Platinum 73.99% Zilkaatsnek
100%
Schietfontein
70%
Total PGM
Indicated Mineral Resources 31.12.15 31.12.14
– – 16.36 3.5 2.78 2.5 6.41 2.3 26 3.09
– – 16.40 3.5 2.78 2.5 6.41 2.3 26 3.09
Measured and Indicated Resources 31.12.15 31.12.14
29.19 4.2 72.32 4.3 2.78 2.5 6.41 2.3 111 4.09
32.39 4.1 73.29 4.3 2.78 2.5 6.41 2.3 115 4.09
Inferred Mineral Resources 31.12.15 31.12.14
– – 76.3 4.5 – – 7.0 2.3 83 4.3
Competent Person
– CL/DR/FF – 76.3 DR 4.5 – DR – 7.0 DR 2.3 83 4.3
PGM Ore Reserves Name of operation
Attributable Mining interest method
Mototolo JV
37%
Eland Platinum 73.99% Total PGM
UG/OC UG/OC
Commodity
Ore (Mt) 3PGE + Gold (g/t) Ore (Mt) 3PGE + Gold (g/t) (Mt) 3PGE + Gold (g/t)
Proved Ore Reserves Probable Ore Reserves 31.12.15 31.12.14 31.12.15 31.12.14
18.731 3.82 – – 19 3.82
16.284 3.66 9.664 2.77 26 3.33
– – – – – –
– – 0.13 3.1 0.1 3.10
Total Ore Reserves 31.12.15 31.12.14
18.73 3.8 – – 19 3.82
16.28 3.7 9.79 2.7 26 3.32
Competent Person
FF/DR DR/PJG
Notes Tonnages are quoted as million metric tonnes.
The annual Mineral Resource estimation was conducted by Obsidian Consulting Services on behalf of Glencore.
Grades are quoted as 3PGE + Au (Platinum, Palladium, Rhodium and Gold).
The net change in the year on year Mineral Resources is -0.7Mt. This change is mainly due to the re-estimation and adjustment of the oxidised ore boundaries, and the change in the thickness of the middling waste parameters. The change is after the mining depletions have been discounted.
The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves. Glencore Ferroalloys' platinum mining operations mine the platinum bearing UG2 Chromitite Layer of the Bushveld Complex, South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGEs), in the world.
The Ore Reserve changed year on year on a net basis, after mining depletions have been discounted, by 4.9Mt. The change was mainly due to an increase in the Mineral Resource re-estimation, an increase in the mining-cut and an area mined that was not previously in reserve.
The PGE ore at Mototolo Mine is mined from a shallow dipping (10o – 14o) tabular ore-body referred to as the UG2 Chromitite Layer. The chromitite layer is mined underground using a trackless mechanised mining method on a bord and pillar mine layout design.
The LOM period for Mototolo Platinum Mine is 7.9 years based on the declared Ore Reserves. The LOM period based on all the Mineral Resources converted to Ore Reserves is 9.7 years. The Mining Right expiry date is 2039. The planned production rate is 210kt ROM per month.
The Eland Platinum Mine has been put on care and maintenance. No Ore Reserves have been declared. Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, reclassification and changes in the Mineral Resource and Ore Reserve tonnages and grades due to additional geological information gained through exploration.
Eland, Zilkaatsnek and Schietfontein: Eland, Zilkaatsnek and Schietfontein are contiguous Mining and Prospecting Right areas, targeting the same orebody and together constitute the Eland Platinum Mine.
The tonnage and grade estimations are made using geostatistical analysis of the exploration drill hole data as well as underground channel sample data, where available. From this analysis the most appropriate parameters are derived for the construction of block models for the various orebodies. Tonnages and grades are reported from these block models for each mine and project. Confidence limit curves are derived from fitted distributions and used to classify the Mineral Resources at various confidence levels.
The current Mineral Resource estimate contained in this report is based only on mining depletions during 2015. No exploration activities were carried out during the reporting period. The Mineral Resources are constrained by lithological facies. The year on year changes in the Mineral Resources is only due to mining depletion during the 2014 - 2015 reporting period.
Mototolo JV: The structural and grade block model was updated with exploration drill hole data drilled during the 2014 – 2015 reporting period.
The LOM for Eland Platinum Mine based on all the Mineral Resources converted to Ore Reserves is 48 years. The Mining Right expiry date is 2039. 36 Glencore - Resources & Reserves Report 2015
Metals and Minerals Ferroalloys
Competent Persons PJG = Pieter-Jan Gräbe, Glencore Ferroalloys (SACNASP); overall responsibility for Mineral Resources. FF = Frikkie Fensham, Glencore Ferroalloys, (SACNASP); Responsible for Mineral Resources and Ore Reserves. DR
= Dean Richards, Obsidian Consulting Services (SACNASP); responsible for data validation, construction of tonnage and grade block models and reporting of tonnage and grades from block model.
CL = Carina Lemmer, Geological & Geostatistical Services (SACNASP); responsible for geostatistical analysis of data and classification of Mineral Resources.
37 Glencore - Resources & Reserves Report 2015
Metals and Minerals Ferroalloys
Silica Mineral Resources Attributable Name of operation interest
Mining method
Rietvly
OC
79.5%
Commodity
Measured Mineral Resources 31.12.15 31.12.14
(Mt) SiO2 (%)
– –
Indicated Mineral Resources 31.12.15 31.12.14
– –
23.81 91
24.34 91
Measured and Indicated Resources 31.12.15 31.12.14
23.81 91
Inferred Mineral Resources 31.12.15 31.12.14
24.34 91
– –
Competent Person
– –
CM
Total Ore Reserves 31.12.15 31.12.14
Competent Person
Silica Ore Reserves Name of operation
Attributable interest
Mining method
Rietvly
79.5%
OC
Commodity
Proved Ore Reserves 31.12.15 31.12.14
Ore (Mt) SiO2 (%)
– –
– –
Probable Ore Reserves 31.12.15 31.12.14
2.15 91
2.38 91
2.15 91
2.38 91
CM
Notes
Competent Person
Tonnages are quoted as thousand metric tonnes.
PJG = Pieter-Jan Gräbe, Glencore Ferroalloys (SACNASP); overall responsibility for Mineral Resources and Ore Reserve.
Grades are quoted as %SiO2. Glencore Ferroalloys' silica mining operation is an open cast mining operation mining a massive quartzite deposit of the Magaliesberg Formation of the Pretoria Group, which is a subgroup of the Transvaal Super Group, South Africa. The Magaliesberg Formation forms a prominent quartzite ridge striking north-south along the Magaliesberg Mountain Range. The formation is a few hundred meters thick and dips towards the east at over 20o. The Rietvly quartzite orebody is a very pure quartzite with a silica content of over 90% SiO2.
CM = Mogomotsi Maputle, Glencore Ferroalloys (SACNASP); responsible for Mineral Resources and Ore Reserves. Competent Person for Ore Reserve / Competent Person for Mineral Resource; where only one set of initials is listed, the same Competent Person is responsible for all categories quoted. Unless otherwise noted all Competent Persons are full time employees of Glencore plc subsidiaries.
The ore is mined through open cast mining methods and the ROM ore is crushed, washed and sized on site to produce a final sized and quality graded product. No silica cut-off grades are applied to the Mineral Resource estimation. The quartzite is mainly mined to supply the Glencore Ferroalloys furnaces with silica. No significant changes have been recorded in the year on year Mineral Resource estimation. No significant changes have been recorded in the year on year Ore Reserve estimation. The Ore Reserves for Rietvly Silica Mine is based on a 5 year mining footprint with a production rate of 42.590kt ROM per month. The LOM period based on all the Mineral Resources converted to Ore Reserves is 39.6 years. The Mining Right expiry date is 2037.
38 Glencore - Resources & Reserves Report 2015
Metals and Minerals Iron Ore Iron Ore Mineral Resources Name of operation
Attributable Mining interest method
El Aouj Mining Company S.A. Guelb el Aouj 48.8% OC East
Commodity
(Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Guelb el Aouj 48.8% (Mt) Centre Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Bou Derga 48.8% (Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Tintekrate 48.8% (Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Total El Aouj Mining Company S.A. (Mt) Iron (%) Sphere Mauritania S.A. Askaf North 87.8% OC (Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Askaf Centre 87.8% OC (Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Askaf East 87.8% OC (Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised (Mt) Iron (%) Total Sphere Mauritania S.A. (Mt) Iron (%) Sphere Lebtheinia S.A. Lebtheinia 97.5% (Mt) Centre Iron (%) DTC wt (%) DTC Iron (%) LOZ (Mt) Iron (%) Total Sphere Lebtheinia S.A. (Mt) Iron (%)
Measured Mineral Resources 31.12.15 31.12.14
Indicated Mineral Resources 31.12.15 31.12.14
Measured and Indicated Resources 31.12.15 31.12.14
Inferred Mineral Resources 31.12.15 31.12.14
Competent Person
400 36 45 69.8 70 34 – – – – – – – – – – – – – – – – – – 470 36
400 36 45 69.8 70 34 – – – – – – – – – – – – – – – – – – 470 36
1,170 36 45 69.2 80 35 185 34 43 69.6 – – – – – – – – – – – – – – 1,435 36
1,170 36 45 69.2 80 35 185 34 43 69.6 – – – – – – – – – – – – – – 1,435 36
1,570 36 45 69.3 150 35 185 34 43 69.6 – – – – – – – – – – – – – – 1,905 36
1,570 36 45 69.3 150 35 185 34 43 69.6 – – – – – – – – – – – – – – 1,905 36
300 36 45 69.5 30 35 615 35 44 69.8 45 33 510 36 43 69.7 130 35 710 36 44 69.4 180 34 2,520 35
300 36 45 69.5 30 35 615 35 44 69.8 45 33 510 36 43 69.7 130 35 710 36 44 69.4 180 34 2,520 35
AM/SvdM
200 36 47 69.8 15 35 – – – – – – – – – – – – 215 36
200 36 47 69.8 15 35 – – – – – – – – – – – – 215 36
160 35 45 69.4 30 35 – – – – – – – – – – – – 190 35
160 35 45 69.4 30 35 – – – – – – – – – – – – 190 35
360 36 46 69.6 45 35 – – – – – – – – – – – – 405 36
360 36 46 69.6 45 35 – – – – – – – – – – – – 405 36
45 36 45 69.2 15 35 95 36 42 69.9 13 37 70 35 42 70.3 13 31 251 35
45 36 45 69.2 15 35 95 36 42 69.9 13 37 70 35 42 70.3 13 31 251 35
AM/SvdM
– – – – – – – –
– – – – – – – –
2,180 32 27 68.6 – – 2,180 32
2,180 32 27 68.6 – – 2,180 32
2,180 32 27 68.6 – – 2,180 32
2,180 32 27 68.6 – – 2,180 32
350 32 27 68.1 210 31 560 32
350 AM/SvdM 32 27 68.1 210 AM/SvdM 31 560 32
AM/SvdM AM/SvdM
AM/SvdM AM/SvdM
AM/SvdM AM/SvdM
AM/SvdM
AM/SvdM AM/SvdM
AM/SvdM AM/SvdM
AM/SvdM
39 Glencore - Resources & Reserves Report 2015
Metals and Minerals Iron Ore
Name of operation
Attributable Mining interest method
Jumelles Limited Zanaga 50%
Commodity
OC
Measured Mineral Resources 31.12.15 31.12.14
(Mt) Iron (%)
2,300 34
Indicated Mineral Resources 31.12.15 31.12.14
2,300 34
2,500 30
2,500 30
Measured and Indicated Resources 31.12.15 31.12.14
4,800 32
4,800 32
Inferred Mineral Resources 31.12.15 31.12.14
2,100 31
2,100 31
Competent Person
MT
Iron Ore Reserves Name of operation
Attributable interest
Mining method
El Aouj Mining Company S.A. Guelb el Aouj East 48.8%
OC
Sphere Mauritania S.A. Askaf North
OC
87.8%
Total Sphere Mauritania S.A. Jumelles Limited Zanaga
Commodity
Proved Ore Reserves 31.12.15 31.12.14
Probable Ore Reserves 31.12.15 31.12.14
Total Ore Reserves 31.12.15 31.12.14
Competent Person
Ore (Mt) Iron (%) DTC wt (%) DTC Iron (%)
380 35 44 69.6
370 35 44 69.8
551 35 43 69.0
385 35 43 69.6
931 35 44 69.2
755 35 43 69.7
JS
Ore (Mt) Iron (%) DTC wt (%) DTC Iron (%) Oxidised Ore (Mt) Iron (%) DTC wt (%) DTC Iron (%) Ore (Mt) Iron (%)
– – – – – – – – – –
140 36 46 70 – – – – 140 36
– – – – – – – – – –
50 34 44 70 42 35 33 69 92 34
– – – – – – – – – –
190 35 45 70 42 35 33 69 232 35
MC
770 37
770 37
1,290 32
1,290 32
2,070 34
2,070 34
GB
MC
50% OC
Ore (Mt) Iron (%)
Notes All Mineral Resources are considered suitable for open cut extraction.
The full release of this Mineral Resource and Ore Reserve update is available on the Australian Securities Exchange website (www.asx.com.au). Please search for stock code Sphere Minerals (SPH).
DTC wt (%) – Davis Tube Concentrate mass recovery. DTC Iron (%) – Davis Tube Concentrate assay %Fe.
Guelb el Aouj Centre: The El Aouj Centre magnetite-quartzite (MQ) deposit is a highly metamorphosed banded iron formation (meta-BIF) unit that ranges in true thickness from 50m to over 200m. The geometry of the deposit is defined by a tight synformal structure with a sub-vertical axial plane. The synform outcrops over a strike length of about 2.4km. The thickest accumulation of magnetite-quartzite is found along the western limb of the synform, pinching out towards the east. A series of stacked recumbent isoclinal folds probably controlled the overall geometry of the deposit. The original bedding has been partially to completely obliterated by recrystallisation, resulting in a coarse-grained texture with aggregated magnetite grains. The weathered zone, though variable, has an average vertical thickness of approximately 40m. In this zone partial to complete oxidation of magnetite to hematite has occurred.
Davis Tube test work has been conducted at a grind size of 95% passing 80 micron. The rounding used for the values in this report reflects the confidence in the different levels of Mineral Resource and Ore Reserve classifications. El Aouj Mining Company: Sphere Minerals holds a 50% interest in the El Aouj Mining Company through a Joint Venture arrangement with SNIM. Guelb el Aouj East: The “Guelb” deposits are hosted in Banded Iron Formations (BIF) within the Dorsale Reguibat, an uplifted part of the Archaean West African Craton, which dominates the northern third of Mauritania’s surface geology. Recrystallisation and aggregation of the magnetite grains in BIF has resulted in the partial to total destruction of the original banded (bedding) texture to produce the Guelb el Aouj magnetite-quartzite deposits. The geological sequence is overprinted by a reasonably uniform, approximately 80m thick weathered zone in which much of the magnetite has oxidised to hematite.
This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%. Bou Derga: The Bou Derga deposit forms part of a larger scale synformal structure defined by an Archean magnetitequartzite (MQ) unit that ranges in true thickness from approximately 20m to 200m. The thicker parts of the deposit are considered to be a result of isoclinal folding. Drilling was restricted to the western fold closure. The deposit dips towards the northeast at about 60°. The deposit contains a number of internal waste bands (typically 5m to 50m thick) which have been modelled separately and
This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%. The Guelb el Aouj East Ore Reserve Statement is based on a Feasibility Study and uses a 20% DTC wt% cut-off. No oxidised material has been included in the Ore Reserves. 40
Glencore - Resources & Reserves Report 2015
Metals and Minerals Iron Ore
excluded from the Mineral Resource estimation. A northwest-southeast trending fault displaces the mineralisation in the south-eastern part of the deposit.
term iron ore market. No other changes have been made to the technical scope or financial elements of the project, as originally outlined in the 2012 Feasibility Study and the 2014 FEED planning as part of the original commencement of the Askaf North project. Prices have been based on International Consensus pricing of iron ore on the international market, benchmarked to the long term IODEX62 price.
This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%. The Bou Derga Mineral Resource Statement has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition).
Changes from the previous statement are the result of a reevaluation of the economics of the mine following an update to the international long term price outlook for iron ore. Economics show no viable investment case based on the existing CAPEX and OPEX estimates and hence Ore Reserves have been reduced to zero.
Tintekrate: The Tintekrate deposit is hosted within the Dorsale Reguibat, an uplifted part of the Archaean West African Craton, which dominates the northern third of Mauritania’s surface geology. Recrystallisation and aggregation of the magnetite grains in the meta-banded iron formation (BIF) units has resulted in partial to total destruction of the original banded (bedding) texture to produce the Tintekrate and other similar magnetite-quartzite deposits. The Tintekrate deposit is a circular structure defined by a steep dipping MQ unit with dips of 50° to 80° (locally overturned) with true mineralised thicknesses of 100m to 150m on the western side of the structure to 50m to 100m on the eastern side. The weathered zone averages 70m to 75m vertical depth below natural surface and its base tends to mirror the natural surface profile. In this zone, magnetite has been partially to completely oxidised to hematite.
The full release of this Mineral Resource and Ore Reserve update is available on the Australian Securities Exchange website (www.asx.com.au). Please search for stock code Sphere Minerals (SPH). Askaf Centre: The Askaf Centre deposit comprises a northern body that is exposed over a strike length of 3.5km and a southern body that is exposed over a strike length of 1.7km. Both bodies form part of a regional scale antiformal structure and each body is also duplicated within itself by outcrop-scale tight isoclinal folding. The northern and southern bodies are separated and displaced in a dextral shear sense by a regional scale fault/fracture system. The northern body is generally sub-vertical striking roughly northwest-southeast. The magnetite-quartzite unit ranges in thickness from approximately 50m in the west to approximately 70m in the east, with the magnetite-quartzite mineralisation being thinnest in the steep dipping middle portion (±10 m). The multiple layers reported is the result of tight isoclinal folding. The southern body comprises an open synformal structure with an undulating sub-horizontal fold axis that plunges at approximately 25° towards the southwest at the southern part of the deposit. At this locality the mineralisation is still open-ended at depth. The two limbs of the synform are exposed over a strike length of approximately 1km. The northern part of the synform is tighter than is the case in the south, with the eastern limb almost being overturned in some places. Magnetitequartzite ranges in thickness from approximately 30m to 35m in the limbs to approximately 45m to 55m in the synformal keel as a result of structural thickening with thicknesses of up to 90m reported. The magnetite-quartzite unit is embedded within an Archaen granitic/gneiss sequence. The weathered zone which, though variable, has an average vertical thickness of approximately 40m and in this zone partial to complete oxidation of magnetite to hematite has occurred. Oxidation significantly reduces the Davis Tube mass recovery (wt%) in mineralised drill samples.
This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%. Sphere Minerals: Glencore’s interest in Sphere Minerals stands at 97.5% as at 31 December 2015. Askaf North: Askaf North Deposit is an east-west striking synformal structure defined by a magnetite-quartzite (MQ) unit that ranges in true thickness from approximately 140m in the western hinge zone to approximately 30m along the eastern part of the southern limb. The synformal axis plunges at between 20° to 30° towards the east in the western part of the synform, and at about 35° to 45° towards the west at the eastern fold closure, producing a double plunging synform. A dolerite dyke has been emplaced along an east-west fault zone that displaces the northern part of the deposit in a dextral shear sense. The disruption and emplacement of the dolerite along the northern limb of the synform has not affected the quality of the mineralisation. The MQ unit represents a metamorphosed banded iron-formation (BIF). The precursor BIF was subjected to high-grade metamorphic conditions during the Archaean, which resulted in complete recrystallisation of the original fine-grained BIF. In most cases the primary textures have been destroyed by the recrystallisation. Coarse-grained (>1mm) MQ is produced as a result, with good Davis Tube liberation characteristics and concentrate grades at a liberation grind size of 95% passing 80 micron.
This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%. Askaf East: The Askaf East deposit occupies the southern limb of an apparent east-west striking synformal structure defined by an Archaean magnetite-quartzite unit that ranges in true thickness from approximately 20m at the western end of the limb to approximately 140m in the central part of the limb. The hinge zone is at the eastern end of the deposit. The synformal axis plunges about 40° towards the west in the eastern part of the synform. The thickening of the sequence in the eastern part of the deposit is probably as a result of isoclinal folding within the sequence. The MQ
The Askaf North Mineral Resource Statement uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%. The Ore Reserve estimate has been restated to reflect long term iron ore price assumptions that have been updated in response to a significant change in the outlook for the long 41
Glencore - Resources & Reserves Report 2015
Metals and Minerals Iron Ore
unit is embedded within an Archaen granitic/gneiss sequence. The weathered zone, though variable, has an average vertical thickness of approximately 40m. Partial to complete oxidation of magnetite to hematite has occurred in this zone and this significantly reduces the Davis Tube mass recovery (wt%) in mineralised drill samples.
The Mineral Resource is reported at a 0% Fe cut-off. The Zanaga Mineral Resource Statement has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition). The Zanaga Project Ore Reserve Statement was prepared by SRK Consulting (UK) Limited as part of a Feasibility Study.
This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.
The full release of this Mineral Resource and Ore Reserve update is available on the Zanaga Iron website (www.zanagairon.com).
Lebtheinia: The magnetite-rich Banded Iron Formations (BIF) at Lebtheinia form part of the Archaean Lebzena Group. The BIF units in EL264 are exposed over a total strike length of approximately 24km, of which Lebtheinia Centre has a strike length of 11.5km. Parts of the main BIF units at Lebtheinia Centre deposit are covered by laterite and colluvium consisting of BIF fragments.
Competent Persons AM = Alan Miller, Independent Consultant (MAusIMM (CP)), responsible for the construction of the geological block model, the grade interpolation and the Mineral Resource estimation (tonnage and grade) and classification.
The magnetite-BIF at Lebtheinia Centre averages about 240m thick. The BIF is characterised by a well-defined banding pattern, with individual bands ("mesobands") averaging 5-10mm thick. Drilling shows that mineralisation extends to at least 400m vertically below natural surface and is open at depth. The deposit is intruded by a series of sub-vertical dolerite dykes, striking NE-SW to NNE-SSW. Lebtheinia Centre has a hanging wall of (variously) quartzite, amphibolite, rhyolite, clay/saprolite (altered amphibolite) and a footwall of quartzite or amphibolite.
JS = Jean-François St-Onge, Eng. formerly of BBA (OIQ). GB = Gabor Bacsfalusi, SRK Consulting (UK) Limited (MAusIMM (CP)). MC = Malcolm Cox, Independent Consultant (FAusIMM). MT = Malcolm Titley, CSA Global (UK) Ltd (MAusIMM (CP)). SvdM = Schalk van der Merwe, Independent Consultant (SACNSP), responsible for the geological interpretation for the Mineral Resource estimation (wireframe model), and the drill hole data set used in these resource estimation.
The depth of weathering (oxidation) of the BIF averages around 50m. In the lower two thirds of the oxidised zone (the Lower Oxidised Zone, "LOZ") the degree of oxidation is less than in the more oxidised upper third. The Lebtheinia Centre Mineral Resource Statement for fresh mineralisation uses 20% DTC wt% cut-off. For the LOZ unit the cut-off is 14 SI x 10-3 units of magnetic susceptibility. The Lebtheinia Mineral Resource Statement has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition). Jumelles: Following exercise of its call option in February 2011, Glencore owns 50% plus one share in Jumelles Limited being the ultimate parent company of MPD Congo SA the holder of the Zanaga exploration licences in the Republic of Congo. Zanaga Project: Zanaga Project is owned 100% by Jumelles Limited. The Zanaga ELs are located within a north-south oriented greenstone belt which extends for over 47km in length, and vary between 0.5km and 3km in width. The mineralisation is hosted by metamorphosed volcanosedimentary itabirites, and is interbedded with amphibolites and mafic schists. The contact with the crystalline basement is typically faulted and sheared. The principal ore lithologies consist of itabirites, interbedded with basic lavas, which are later altered to amphibolites. Typically, the itabirites consist of layers of iron-rich and quartz rich meta-sediments, on a millimetre to centimetre scale. The orebody lithologies are crosscut by late intrusions and dolerite dykes, oriented northeast-southwest. The deposit comprises a sequence of weathering domains, which overlay an un-weathered protore comprising itabirite. The weathered sequence observed at Zanaga is typical of iron ore deposits, where the surficial material demonstrates enrichment in iron above the protore due to a mass reduction and associated leaching of the silicate layers. 42
Glencore - Resources & Reserves Report 2015
Energy Products Coal Australia Coal Resources – New South Wales
Name of operation
Attributable Mining interest Method
Oakbridge Group Bulga Complex
68.3%
Baal Bone
74.1%
Running Stream
78%
Macquarie Coal JV West Wallsend
80%
Commodity
Measured Coal Resources 31.12.15 31.12.14
Indicated Coal Resources 31.12.15 31.12.14
Inferred Coal Resources Competent 31.12.15 31.12.14 Person
Thermal Coal (Mt) OC/UG Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) UG Thermal Coal (Mt) CV (kcal/kg) UG Thermal Coal (Mt) CV (kcal/kg) UG Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) UG Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) Coking Coal (Mt) UG Coking Coal (Mt) UG Coking Coal (Mt) UG Thermal Coal (Mt) CV (kcal/kg)
1,184 1,150 5,800 15 5,800 19 5,050 62 60 5,500 – – 2 6,000 – – 150 6,200 280 140 6,250 65 5,700 75 5,900 250 6,200 285 240 6,600 45 4,950 434 24 6,000 410 6,000 140 5,150 65 45 20 320 5,800
1,183 1,150 5,800 15 5,800 18 5,050 60 60 5,500 – – – – – – 170 6,100 295 150 6,150 65 5,550 80 5,900 250 6,200 295 250 6,650 45 4,950 434 24 6,000 410 6,000 170 5,150 65 45 20 320 5,800
673 600 5,750 13 6,350 60 5,050 97 5 5,000 12 5,700 80 6,000 120 5,300 150 5,950 166 90 6,100 26 5,700 50 5,950 220 6,200 413 400 4,700 13 5,200 220 0.1 5,500 220 6,100 250 4,650 340 100 240 220 5,400
683 610 5,750 13 6,400 60 5,000 97 5 5,000 12 5,700 80 6,000 120 5,300 140 5,900 160 90 6,050 30 5,550 40 5,700 220 6,100 413 400 4,650 13 5,200 220 – – 220 6,100 65 4,950 340 100 240 220 5,400
1,030 800 5,600 80 5,000 150 5,150 30 – – 30 5,500 – – 400 5,000 400 6,150 241 150 6,050 1 5,750 90 5,850 600 5,850 720 700 5,000 20 4,900 150 – – 150 5,700 1,200 4,300 250 150 100 250 5,350
1,040 800 5,650 90 5,150 150 5,150 30 – – 30 5,700 – – 400 5,000 350 5,900 231 150 6,000 1 5,800 80 5,900 600 6,000 720 700 5,100 20 4,900 150 – – 150 5,700 1,100 4,600 250 150 100 250 5,350
Coal Resources New South Wales Coking/Thermal Coal (Mt)
3,170
3,242
2,869
2,678
5,271
5,121
Cardiff Borehole Teralba Mitchells Flat
100%
Liddell
67.5%
Mount Owen Complex Mount Owen
100%
Ravensworth East Glendell United
95%
Ulan Complex Ulan UGs
90%
Ulan Waratah OC Ravensworth Group Narama
100%
Ravensworth North
90%
Mangoola
100%
Tahmoor Complex Tahmoor North Tahmoor South Ravensworth UG
100%
70%
CS JMB JMB
CFP CFP CFP CFP ST/DS
DS DS DS RMD
ML ML
ST ST ML
PM KP PH
43 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Australia Coal Reserves – New South Wales
Name of operation
Oakbridge Group Bulga OC
Attributable Mining interest method
68.3%
Macquarie Coal JV West Wallsend
80%
Liddell
67.5%
Mount Owen Complex 100% Mount Owen Ravensworth East Glendell 95%
United A444 Ulan Complex Ulan #3 UG
90%
Ulan West UG Ulan Waratah OC Ravensworth Group Ravensworth North
90%
Mangoola
100%
Tahmoor Complex Tahmoor North
100%
Tahmoor South
Ravensworth UG
Thermal Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) UG Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) UG Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) OC Thermal Coal (Mt) CV (kcal/kg) UG Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) UG Thermal Coal (Mt) CV (kcal/kg) UG Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) Coking/Thermal Coal (Mt) UG Coking Coal (Mt) Ash (%) UG Thermal Coal (Mt) CV (kcal/kg) UG Coking Coal (Mt) Ash (%) UG Thermal Coal (Mt) CV (kcal/kg) UG Thermal Coal (Mt) CV (kcal/kg)
300 170
38 15
130
23
2 2
– –
27
15
123 80
12 11
16
1
27
–
– –
85 50
–
35
171 55
10 4
110
6
6
0.4
230 230
11 11
110
5
20 7
40 10
–
–
13
30
–
–
40
–
Thermal Coal (Mt) Coking Coal (Mt)
1,003 20
176 40
OC
Bulga UG
United United OC
Coal type
Coal Reserves Proved Probable 31.12.15 31.12.15
70%
Coal Reserves New South Wales
Marketable Coal Reserves Proved Probable 31.12.15 31.12.15
Total Marketable Coal Reserves 31.12.15
31.12.14
230 120 6,450 110 6,450 7 7 5,950 32 6,700 86 54 6,500 12 6,400 20 6,600 56 32 6,850 24 6,850 158 57 6,500 97 6,400 4 5,000 170 170 6,350 100 5,300 46 13 9.3 1 5,650 29 9.5 3 5,850 28 6,950 871 42
200 110 6,450 90 6,450 1 1 5,500 17 6,700 73 45 6,450 10 6,400 18 6,500 – – – – – 154 50 6,450 100 6,400 4 5,000 160 160 6,250 85 5,300 14 6 9.3 0.2 5,500 7 9.5 1 5,850 28 6,600
25 8 6,650 17 6,450 – – 10 6,700 7 6 6,550 1 6,400 – – 54 30 6,850 24 6,850 9 4 6,450 5 6,350 0.2 5,000 7 7 6,300 5 5,050 30 6 9.3 1 5,600 21 9.5 2 5,850 – –
225 118 6,450 107 6,450 1 1 5,500 27 6,700 80 51 6,450 11 6,400 18 6,500 54 30 6,850 24 6,850 163 54 6,450 105 6,400 4 5,000 167 167 6,250 90 5,300 44 12 9.3 1 5,600 28 9.5 3 5,850 28 6,600
719 13
120 27
839 40
Competent Person
DL MJ
AF NB
STH STH STH
STH STH
EMcG HE DL
CG MW
RO
RO
KB
Note: Hunter Valley Semisoft coking coal is included in Thermal Coal (Mt)
44 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Notes
Running Stream: Running Stream is an undeveloped thermal coal project. No material change in Coal Resources.
The Australian Coal Resources and Reserves are contained within the Sydney Basin (New South Wales), the Bowen Basin (Queensland), the Surat Basin (Queensland) and the Galilee Basin (Queensland).
Potential mining methods are open cut for the shallow Coal Resources (less than 60m depth of cover) and underground mining for Coal Resources in excess of 60m depth of cover.
Coal Resource tonnes have been reported on an in situ moisture basis while Coal Reserves are reported on an as received moisture basis. Coal Resources are reported inclusive of those Coal Resources modified to produce Coal Reserves.
Assessment Leases expire in May 2020. There is no mine plan current for this deposit. Macquarie JV West Wallsend: Coal Resource and Reserve depletion due to mining (-1.5Mt) and sterilisation/mine plan changes (-1.2Mt). Coal Reserves decrease due to reclassification of Reserve status (-6.1Mt).
Coal Resources have been re-estimated in 2015 for inclusion in this summary table except where otherwise stated. Revision of the totals includes changes to classifications of Coal Resource status due to exploration, geological reinterpretation remodelling, changes to lease holdings and depletion by mining.
Tenements for West Wallsend, Cardiff Borehole and Teralba expire between May 2007 and November 2035. Some tenements have expired and Renewal Applications have been submitted.
Thermal Coal Resource qualities are reported at an in situ moisture basis and Thermal Coal Reserve qualities are reported on a gross as received basis. Coal Resource qualities for coking coal are not reported, however Coking Coal Reserve qualities are reported on a gross as received basis.
Cardiff Borehole: Coal Resources were not re-estimated in 2015. There is currently no mine plan at Cardiff Borehole.
Unless otherwise stated, the product yields used to estimate Marketable Coal Reserves are derived from a simulation package applied to sizing and washability data from each deposit, commonly the "Resource Mastor" software developed by A&B Mylec. The plant simulation package forecasts future plant performance based on historical plant data and exploration drill core analysis.
Cardiff Borehole is a potential underground Coal Resource possibly accessible via the existing Teralba Colliery infrastructure. Teralba: Coal Resources were not re-estimated in 2015. Teralba was a longwall underground that ceased operations in 2001. The Coal Resource remains suitable for a potential underground mine.
Changes and issues material to the estimation of Coal Resources and Reserves are noted below for specific projects. Reference to production changes between 31 December 2014 and 31 December 2015 are detailed for each producing mine site.
Mitchells Flat: Coal Resource were not re-estimated in 2015. Liddell Open Cut: Coal Resource increase due to geology model change (Inferred 40Mt) and reclassification of Coal Resources (Measured and Indicated 5.5Mt). Coal Resource and Reserve depletion due to mining (-5.9Mt).
Tonnages are quoted as million metric tonnes. Oakbridge Group Bulga Complex: (-14.1Mt).
decrease
Tenements for Liddell expire between October 2023 and November 2028. Coal Reserves for Liddell operations are sufficient to support a mine life of 7 years.
Bulga open cut: Coal Resource depletion due to mining (-8.5Mt), offset by Coal Resource increase (+5.4Mt) from a newly-granted mining lease.
Mt Owen Complex Mount Owen: Coal Resource and Reserve depletion due to mining (-7.4Mt).
Coal Reserves for Bulga Open Cut operations are sufficient to support a mine life of 17 years.
Tenements for Mt Owen expire between November 2015 and July 2036. Some tenements have expired and Renewal Applications have been submitted.
Overall
Coal
Resource
Bulga underground: Coal Resource depletion due to mining (-3.3Mt) and sterilisation (-2.2Mt) due to mine plan changes.
Coal Reserves for Mt Owen Complex operations (including Mt Owen, Glendell and Ravensworth East) are sufficient to support a mine life of 14 years.
Tenements for the Bulga Complex expire between April 2015 and September 2036. Some tenements have expired and Renewal Applications have been submitted.
Ravensworth East: Coal Resource decrease due to geology model changes (-3.9Mt). Coal Resource depletion due to mining (-0.7Mt). Coal Reserve depletion due to mining (-1.5Mt) and dilution (-0.6Mt).
Baal Bone: Inferred Coal Resource decrease (-8Mt) as tonnes in the Lithgow Seam escarpment zone were removed due to surface lease constraints.
Tenements for Ravensworth East expire between July 2013 and November 2021. Some tenements have expired and Renewal Applications have been submitted.
Extraction of the remaining Lithgow Seam and Irondale Seam resources expected to be by underground methods except where the Lithgow, Irondale and Glen Davis Seams are potentially extractable by open cut methods.
Glendell: Coal Resource increase due to modelling changes (13Mt). Coal Resource depletion due to mining (-4.6Mt).
Tenements for Baal Bone expire between May 2017 and August 2032.
Increase in Indicated Coal Resource CV due to review of coal quality model (250kcal/kg). Coal Reserve depletion due to mining (-4.7Mt ROM) and dilution (-0.5Mt). Tenements for Glendell expire between July 2015 and March 2032. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for 45 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Glendell operations are sufficient to support a mine life of 6 years.
Coal Reserve decrease due to modelling and mine plan changes (-4Mt). Coal Reserve depletion due to mining (-10.9Mt).
Integra: The assets associated with the Integra underground mine including coal tenements, land, equipment and infrastructure adjacent to the Mt Owen Complex were acquired from the Integra JV in December 2015. Open cut mine and coal preparation assets were concurrently acquired by others.
Tenements for Mangoola expire between November 2014 and November 2029. Some tenements have expired but Renewal Applications have been submitted. Coal Reserves for Mangoola operations are sufficient to support a mine life of 11 years.
A full assessment and restatement of Coal Resources and Reserves will be completed during 2016.
Ravensworth Underground: No change in Coal Resource estimation since 31 December 2014. No material change in Coal Reserves since 31 December 2014.
Tenements for the area acquired by Glencore expire between March 2016 and November 2033.
Tenements for Ravensworth Underground expire between September 2012 and August 2036. Some tenements have expired and Renewal Applications have been submitted.
United: No change in the Coal Resource estimate since 31 December 2012. Tenements for United expire between May 2016 and March 2033.
Tahmoor Complex: Tahmoor North: No material change to Coal Resources since 31 December 2014. Coal Reserve depletion due to mining (-2.4Mt).
United A444 Underground: No change in the Coal Reserve estimate since 31 December 2012. United Open Cut: No change in the Coal Reserve estimate since 31 December 2012.
Tenements for Tahmoor North expire between August 2016 and March 2035. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for Tahmoor North underground operations are sufficient to support a mine life of 7 years.
Ulan Complex: Coal Resource decrease due to removal of sterilised mining section and reclassification (-5.2Mt). Underground Coal Resource depletion due to mining (-11.4mt).
Tahmoor South: No change in Coal Resource or Reserves since 31 December 2014.
Tenements for Ulan expire between February 2017 and January 2036.
Tenements for Tahmoor South expire in 2025.
Ulan Waratah open cut: No material changes to Coal Resources or Reserves since 31 December 2014. Ulan West underground: Coal Reserve increase due to mine plan changes (18.4Mt). Coal Reserve depletion due to mining (-6.6Mt) and sterilisation (-0.1Mt). Coal Reserves for Ulan West underground operations are sufficient to support a mine life of 14 years. Ulan #3 underground: Coal Reserve depletion due to mining (-4.9Mt). Coal Reserves for Ulan #3 underground operations are sufficient to support a mine life of 12 years. Ravensworth Group Narama: No material change to Coal Resources since 31 December 2014. Mining Operations in Narama ceased at the end of 2014 upon completion of the Life of Mine Plan. Tenements for Narama expire between December 2023 and August 2036. Ravensworth North: Coal Resource increase due to inclusion of new area within ML1669 (7Mt). Coal Resource and Reserve depletion due to mining (-8.6Mt). Tenements for Ravensworth North expire between May 2014 and February 2034. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for Ravensworth North operations are sufficient to support a mine life of 19 years. Mangoola: Coal Resource increase due to additional exploration drill data within Mangoola North (Measured and Indicated 162Mt, Inferred 167Mt). Coal Resource depletion due to mining (-10.8Mt). Decrease in Indicated & Inferred Coal Resource CV due to the addition of lower quality tonnes within Mangoola North (-300kcal/kg).
46 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Competent Persons AF = Alison Freeman, Senior Mining Engineer, West Wallsend Colliery (AusIMM). CFP = Charles Parbury, Director, McElroy Bryan Geological Services Pty Ltd (AusIMM). CG = Chris Gerard, Senior Mining Engineer, Ravensworth Open Cut (AusIMM). CS = Christopher Smith, Geologist, Bulga Underground Operations (AusIMM). DL = David Lennard, Xenith Consulting/Manager – Hunter Valley (AusIMM). DS = Daniel Saunders, Geologist, Glendell Mine (AusIMM); EMcG = Edward McGonigle, Senior Mining Engineer – Ulan Underground Mine (AusIMM). HE = Heath Evans, Technical Services Manager, Ulan West Operations (AusIMM). JMB = Janet Bartolo, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM). KB = Konrad Bawelkiewicz, Mining Engineer/Analyst, Glencore Coal Assets Australia (AusIMM). KP = Karol Patino, Senior Project Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM). MJ = Marc Justen, Senior Mining Engineer, Bulga Underground Operations (AusIMM). ML = Mark Laycock, Geology Superintendent, Glencore Coal NSW (AusIMM). MW = Mark Williams, Technical Services Manager, Mangoola (AusIMM). NB = Nicole Brook, General Manager – Business Development & Technical Services, Glencore Coal Australia (AUSIMM). PH = Paul Harrison, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM). PM = Paul Maddocks, Senior Geotechnical Engineer, Tahmoor Coal (AusIMM). RMD = Robert Dyson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM). RO = Rachelle Oliver, Project Manager, Glencore Coal Assets (AusIMM). STH = Shane Holmes, Technical Services Manager, Mt Owen (AusIMM). ST = Shaun Tamplin, Principal Consultant, Tamplin Resources (AusIMM).
47 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Australia Coal Resources – Queensland
Name of operation
Attributable Mining interest Method
Oaky Creek Red Rock
55% 75%
NCA Newlands, Suttor Eastern (RCM)
55%
Wollombi (MCM)
Sarum
Collinsville
Cook
95%
Rolleston Rolleston ML
75%
Rolleston MDL & EPCs Togara North
70%
Wandoan
75%
Milray
75%
Pentland
75%
Clermont
25%
Coal Resources Queensland
Measured Coal Resources 31.12.15 31.12.14
Commodity
Indicated Coal Resources 31.12.15 31.12.14
Inferred Coal Resources 31.12.15 31.12.14
OC/UG Coking Coal (Mt) OC/UG Coking/Thermal Coal (Mt) CV (kcal/kg) Coking/Thermal Coal (Mt) OC/UG Coking Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) OC/UG Coking Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) OC/UG Coking Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) OC/UG Coking Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) OC/UG Coking/Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) OC Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) OC/UG Thermal Coal (Mt) CV (kcal/kg) OC Thermal Coal (Mt) CV (kcal/kg)
260 – 7,450 513 13 330 5,700 11 19 4,800 30 – – 35 75 5,750 – – 225 140 5,750 85 5,700 370 6,350 1,450 5,200 – – 100 4,400 110 6,250
260 – 7,450 478 13 330 5,700 11 19 4,800 30 – – 35 40 5,850 – – 235 150 5,800 85 5,700 370 6,350 1,450 5,200 – – 65 4,450 150 6,200
350 150 5,950 542 7 120 5,350 27 60 4,650 8 65 5,450 75 180 6,200 100 6,650 215 45 5,550 170 5,550 250 6,000 1,700 5,150 – – 40 4,050 26 6,050
340 150 5,950 467 12 110 5,300 27 60 4,650 8 70 5,450 60 120 6,300 100 6,750 210 50 5,550 160 5,550 250 6,000 1,700 5,150 – – 12 4,100 5 6,100
80 150 6,200 1,018 3 400 5,200 70 90 4,550 60 250 4,650 45 100 5,800 900 6,850 370 20 5,450 350 5,550 730 6,000 4,400 5,200 600 4,900 10 4,100 11 5,750
70 150 5,900 880 10 290 5,450 70 90 4,550 60 250 4,650 60 50 5,850 900 6,700 370 20 5,500 350 5,600 800 6,000 4,400 5,200 600 4,900 20 4,300 – –
Coking/Thermal Coal (Mt)
3,028
3,008
3,373
3,234
8,269
8,190
Competent Person
RJH RJH
JT/BL JT/BL JT JT JT JT RJH RJH DP
JB JB DP RJ RJ RJ JT
48 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Australia Coal Reserves – Queensland
Name of operation
Oaky Creek Oaky No. 1
Attributable interest
Mining method
55% UG
Oaky North
UG
Oaky Acacia OC
OC
NCA Newlands OC
55% OC OC
Newlands UG
UG
Collinsville OC
OC OC
Rolleston
75%
OC
Togara North
70%
OC
Wandoan
75%
OC
Clermont
25%
OC
Coal Reserves Queensland
Coal type
Coal Reserves Proved Probable 31.12.15 31.12.15
Coking Coal (Mt) Coking Coal (Mt) Ash (%) Coking Coal (Mt) Ash (%) Coking Coal (Mt) Ash (%) Coking/Thermal Coal (Mt) Coking Coal (Mt) Ash (%) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Coking Coal (Mt) Ash (%) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) Coking Coal (Mt)
73 3
37 2
70
35
–
–
101 14
86 8
40
16
2
–
15
17
30
45
170
60
–
28
780
240
110
23
1,132 102
412 62
Marketable Coal Reserves Proved Probable 31.12.15 31.12.15
Total Marketable Coal Reserves 31.12.15
31.12.14
47 2 9.4 45 9.4 – – 74 10 9.1 27 6,150 1 6,300 10 10.2 26 5,950 170 5,700 – – 560 5,900 110 6,200
24 2 9.4 22 9.4 – – 62 5 9.6 10 5,900 – – 12 9.6 35 5,850 60 5,500 28 6,300 170 5,900 23 5,950
71 4 9.4 67 9.4 – – 136 15 9.3 37 6,100 1 6,300 22 9.9 61 5,900 230 5,650 28 6,300 730 5,900 133 6,150
118 8 9.4 71 9.4 39 9.4 132 16 9.3 39 6,050 2 6,300 30 10 45 6,300 240 5,600 160 6,350 740 5,900 150 6,300
894 67
326 41
1,220 108
1,376 164
Competent Person
SW SW LF
NB NB POG AC AC RM PJ PP BM
Notes Oaky Creek Complex Oaky Creek: Coal Resource increase due to addition of exploration area (13.9Mt). Coal Resource depletion due to mining (-9.1Mt).
NCA Newlands Open cut: Coal Reserve decrease (-3.7Mt ROM). Depletion due to mining (-6Mt), mining outside of 2014 reserve classified areas (2.3Mt).
Tenements for the Oaky Creek Complex expire between March 2016 and August 2035. Some tenements have expired and Renewal Applications have been submitted.
Coal Reserves for Newlands Open Cut operations are sufficient to support a mine life of 8 years. Newlands, Suttor, Eastern (RCM – Rangal Coal Measure): Newlands Coal Resource decrease due to minor model changes (-2.2Mt). Coal Resource depletion due to mining (-4.9Mt from 1 July 2014 to 31 December 2015) and sterilisation (-0.9Mt).
Oaky Creek No. 1: Coal Reserve decrease due to economic and access driven mine plan changes (-1.8Mt). Coal Reserve depletion due to mining (-4.6Mt). Coal Reserves are sufficient to support a mine life for 2-3 years.
Eastern Creek Coal Resource increased due to the addition of high ash thermal Coal Resources (100.6Mt). Coal Resource depletion due to mining (-3Mt from 1 July 2014 to 31 December 2015) and dilution (+0.2Mt).
Oaky Creek North: Coal Reserve depletion due to mining (-4.5Mt) and dilution (+0.2Mt). Coal Reserves are sufficient to support a mine life for 19-20 years.
Suttor Creek Coal Resource depletion due to mining (-0.9Mt) and sterilisation (-0.4Mt).
Oaky Acacia Open cut: Coal Reserve decrease due to a high level review of the project deeming the coal no longer eligible for Coal Reserve status (-49Mt ROM, -39Mt Marketable).
Tenements for Newlands Complex expire between October 2011 and December 2034. Some tenements have expired and Renewal Applications have been submitted.
Red Rock: No change in the Coal Resource estimation since 31 December 2014.
Wollombi (MCM – Moranbah Coal Measures): No change in the Coal Resource or Reserve estimation since 31 December 2012.
Tenements for Red Rock expire between September 2018 and September 2020.
Newlands Underground: Newlands’ Coal Reserve depletion due to mining (-1.6Mt) and dilution changes (0.3Mt).
49 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Sarum: No change in the Coal Resource estimation since 31 December 2012. Reporting changes are due to rounding rule application only.
Competent Persons
The Sarum Project is inclusive of the Sarum and Gattonvale deposits. Tenements at the Project expire between April 2016 and May 2018. An application for the grant of a new, singular, Mineral Development Licence that covers the entire project area has been lodged.
BL = Bronwyn Leonard, Senior Resource Geologist, Newlands Coal QLD (AusIMM).
AC = Andrew Connell, Principal Mining Engineer, Glencore Coal (AusIMM).
BM = Ben Myall, Production Manager, Clermont (AusIMM). DP = Doyle Pryde, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
Collinsville: Coal Resource increase as a result of additional exploration data (Measured and Indicated 51.6Mt, Inferred 31.3Mt) and the inclusion of low volatile matter coal. Coal Resource and Reserve depletion due to mining (-4.6Mt).
JB = Jarrod Bennedick, Senior Mine Geologist, Rolleston (AusIMM). JT = John Terrill, Principal Geologist, Glencore Coal QLD (AIG).
Thermal Coal Reserve increase (17.3Mt) and Coking Coal Reserve decrease (-8Mt) due to mine planning review.
LF = Lindsay Ford, Project Manager, Glencore Coal QLD (AusIMM).
Tenements for Collinsville expire between September 2015 and September 2035. Renewal Application has been submitted for the tenement that has expired.
NB = Nicole Brook, General Manager – Business Development & Technical Services, Glencore Coal Australia (AusIMM). PJ = Paul Jones, Principal Mining Engineer, Glencore Coal (AusIMM).
Cook (Blackrock): No change in Coal Resources since 31 December 2012. CVs have been updated following review.
POG = Paul O'Grady, Group Manager – Mine Planning, Glencore Coal (AusIMM).
Tenements for Cook expire between February 2020 and September 2028.
PP = Phil Price, Operation Manager – Rolleston (AusIMM).
Rolleston: Coal Resource depletion due to mining (-12Mt). Coal Reserve decrease due to changes in LOM plan (-4.7Mt). Coal Reserve depletion due to mining (-10.8Mt).
RJ = Rowan Johnson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM). RJH = Richard (AusIMM).
Tenements for Rolleston expire between October 2009 and May 2043. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for Rolleston are sufficient to support a LOM of 17 years.
Hingst,
Resource
Geologist,
Glencore
RM =Rob Molan, Senior Mining Engineer, Glencore Coal Qld (AusIMM).
Togara North: Coal Resource decreased (-0.5Mt) Indicated and (-54Mt) Inferred from the Aries 1, Aries 3 and Orion seams due to the thin nature of the seams. Coal Reserve reduction (-129.4Mt Marketable) following mine planning review, resulting in changes to pit shell.
SW = Steven Winter, Technical Services Manager, Glencore (AusIMM).
Tenements for Togara North expire between September 2018 and December 2046. Wandoan: No change in the Coal Resource estimation since 31 December 2014. No changes to the Coal Reserve estimation since 31 December 2012. Tenements for Wandoan expire between February 2016 and August 2020. Coal Reserves for Wandoan are sufficient to support a mine life of 32 years. Milray: No change in Coal Resources since 31 December 2012. Tenement for Milray expires in January 2021. Pentland: Coal Resource increase due to data review and reinterpretation/re-correlation of coal seams (61Mt). Tenements for Pentland expire between September 2016 and October 2019. Clermont: Clermont Coal Resources estimated for the extraction of thermal coal via open cut methods. Coal Resource decrease due to geology model changes and reclassification (-6.9Mt). Coal Resource depletion due to mining (-13Mt) and sterilisation (-0.1Mt). Coal Reserves decrease due to reclassification (-4.6Mt). Coal Reserves depletion due to mining (-12.8Mt). Tenements for Clermont expire between April 2020 and November 2027. Coal Reserves at Clermont are sufficient to support a mine life for 11 years. 50 Glencore - Resources & Reserves Report 2015
Energy Products Coal
South Africa Coal Resources
Name of operation
Tweefontein Tweefontein North
Attributable Mining interest Method
79.8% OC/UG
Tweefontein South Goedgevonden Complex iMpunzi iMpunzi North
OC/UG 74%
OC/UG
79.8% OC
iMpunzi East
OC
Zonnebloem Project 100%
OC
Oogiesfontein
100%
UG
Paardekop
100%
UG
Nooitgedacht
100%
UG
Undeveloped Resources Shanduka Graspan
100%
OC/UG
49.99% OC
Townlands
OC
Steelcoal
OC
Lakeside
OC/UG
Leeuwfontein
OC
Springlake
UG/OC
Argent
OC
Springboklaagte*
UG/OC
Corobrik
OC
Commodity
Thermal Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg) Thermal coal (Mt) CV (kcal/kg)
Measured Coal Resources 31.12.15 31.12.14
940 730 5,250 210 5,350 540 4,800 420 280 5,250 140 5,400 200 5,150 60 4,950 130 5,350 22 4,850 – – 190 9 5,350 15 4,850 10 4,650 5 4,500 5 4,600 17 6,300 29 5,100 86 4,500 16 5,100
940 730 5,250 210 5,350 530 4,800 430 290 5,250 140 5,400 200 5,150 60 4,950 130 5,350 22 4,850 – – 190 13 5,350 15 4,850 10 4,650 5 4,500 5 4,600 18 6,300 29 5,100 86 4,500 16 5,100
Indicated Coal Resources 31.12.15 31.12.14
65 – – 65 4,350 28 5,000 14 4 5,500 10 5,250 40 4,850 20 4,950 640 5,400 40 4,850 13 4,750 110 – – – – – – – – – – 10 6,300 – – 100 4,500 – –
65 – – 65 4,350 25 5,000 14 4 5,500 10 5,250 40 4,850 20 4,950 640 5,400 40 4,850 13 4,750 110 – – – – – – – – – – 10 6,300 – – 100 4,500 – –
Inferred Coal Resources 31.12.15 31.12.14
40 10 5,500 30 4,600 – – 3 3 5,600 – – – – – – 90 5,350 6 4,850 250 5,400 16 – – – – – – – – – – 6 6,300 – – 10 4,500 – –
40 10 5,500 30 4,600 1 5,000 3 3 5,600 – – – – – – 90 5,350 6 4,850 250 5,400 16 – – – – – – – – – – 6 6,300 – – 10 4,500 – –
Competent Person
KD KD KD
MS MS MS MS MS MS MS
KD KD KD KD KD KD MS MS KD
* Springboklaagte is held as a Joint Venture between Shanduka and Umcebo, 100% of the Springboklaagte resources are included in the table above under Shanduka and excluded from Umcebo.
51 Glencore - Resources & Reserves Report 2015
Energy Products Coal
South Africa Coal Resources (continued)
Name of operation
Umcebo Middelkraal
Attributable Mining interest Method
43.66% OC
Kleinfontein
OC
Klippan
OC/UG
Kleinfontein Jicama Wonderfontein
OC/UG
Norwesco
OC
Doornrug
OC
Hendrina
UG
Belfast
21.83%
UG
Wildfontein
23.26%
UG
Coal Resources South Africa
Commodity
Measured Coal Resources 31.12.15 31.12.14
Indicated Coal Resources 31.12.15 31.12.14
Inferred Coal Resources 31.12.15 31.12.14
Thermal Coal (Mt) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg)
410 – – – – 4 5,800 11 5,200 100 5,350 1 5,000 4 5,000 180 4,250 110 5,100 2 5,000
414 2 4,550 1 5,250 4 5,800 12 5,200 100 5,350 1 5,000 4 5,000 180 4,250 110 5,100 – –
181 – – – – 1 5,800 – – – – – – – – 180 4,250 – – – –
181 – – – – 1 5,800 – – – – – – – – 180 4,250 – – – –
30 – – – – – – 10 5,200 – – – – – – 10 4,250 10 5,100 – –
30 – – – – – – 10 5,200 – – – – – – 10 4,250 10 5,100 – –
Thermal Coal (Mt)
2,914
2,916
1,151
1,148
435
436
Competent Person
KD KD KD KD KD GC GC GC GC AB
52 Glencore - Resources & Reserves Report 2015
Energy Products Coal
South Africa Coal Reserves
Name of operation
Attributable interest
Tweefontein
79.8%
Mining method
UG/OC
Tweefontein North
UG/OC
Tweefontein South
Goedgevonden
iMpunzi iMpunzi North
74%
79.8% OC
OC
iMpunzi East
Zonnebloem
Oogiesfontein
Nooitgedacht
OC
100%
100%
100%
OC
OC
UG
Coal type
Extractable Coal Reserves Proved Probable 31.12.15 31.12.15
Saleable Coal Reserves Proved Probable 31.12.15 31.12.15
Total Saleable Coal Reserves 31.12.15
31.12.14
Thermal Coal (Mt) Thermal Coal (Mt) Export (Mt)
190 180 –
40 40 –
127 120 80
22 22 14
149 142 94
168 155 118 5,900
CV (kcal/kg)
–
–
5,900
5,900
5,900
Domestic (Mt)
–
–
40
8
48
37
CV (kcal/kg)
–
–
5,100
5,100
5,100
5,100
Thermal Coal (Mt)
9
0
7
–
7
13
Export (Mt)
–
–
7
–
7
11
CV (kcal/kg)
–
–
5,900
–
5,900
5,900
Domestic (Mt) CV (kcal/kg) Thermal Coal (Mt)
– – 305
– – 11
– – 200
– – 6
– – 206
2 5,100 206
Export (Mt) CV (kcal/kg)
– –
– –
85 6,000
4 6,000
89 6,000
90 6,000
Export (Mt) CV (kcal/kg) Domestic (Mt) CV (kcal/kg) Thermal Coal (Mt) Thermal Coal (Mt)
– – – – 170 55
– – – – 6 3
80 5,100 35 5,100 94 29
– 5,100 2 5,100 2 1
80 5,100 37 5,100 96 30
23 5,100 93 5,100 100 35
Export (Mt)
–
–
26
1
27
29
5,700
5,700
5,700
5,700
CV (kcal/kg)
–
–
Domestic (Mt)
–
–
3
0
3
6
CV (kcal/kg)
–
–
5,100
5,100
5,100
5,100
Thermal Coal (Mt)
115
3
65
1
66
65
Export (Mt)
–
–
60
1
61
60
CV (kcal/kg)
–
–
5,700
5,700
5,700
5,700
Domestic (Mt) CV (kcal/kg) Thermal Coal (Mt)
– – –
– – 160
5 5,100 –
– – 80
5 5,100 80
5 5,100 81
Export (Mt)
–
–
–
40
40
42
CV (kcal/kg)
–
–
–
6,000
6,000
6,000
Domestic (Mt) CV (kcal/kg) Thermal Coal (Mt)
– – –
– – 8
– – –
40 5,100 5
40 5,100 5
39 5,100 5
Export (Mt)
–
–
–
4
4
4 5,900
CV (kcal/kg)
–
–
–
5,900
5,900
Domestic (Mt)
–
–
–
2
2
2
CV (kcal/kg)
–
–
–
5,100
5,100
5,100
Thermal Coal (Mt)
–
35
–
22
22
22
Export (Mt)
–
–
–
11
11
11
CV (kcal/kg)
–
–
–
5,900
5,900
5,900
Domestic (Mt) CV (kcal/kg)
– –
– –
– –
11 5,100
11 5,100
11 5,100
Competent Person
TH
TH
CT
TH
TH
RR
RR
MS
53 Glencore - Resources & Reserves Report 2015
Energy Products Coal
South Africa Coal Reserves (continued)
Name of operation
Attributable interest
Shanduka
49.99%
Graspan
Townlands
Steelcoal
Springlake
Argent
Springboklaagte*
Corobrik
Mining method
OC
OC
OC
UG/OC
OC
UG/OC
OC
Coal type
Extractable Coal Reserves Proved Probable 31.12.15 31.12.15
Saleable Coal Reserves Proved Probable 31.12.15 31.12.15
Total Saleable Coal Reserves 31.12.15
31.12.14
Thermal Coal (Mt)
39
74
26
56
82
88
Thermal Coal (Mt)
2
–
1
–
1
4
Domestic (Mt)
–
–
0.5
–
0.5
1
5,900
–
5,900
5,900
CV (kcal/kg)
–
–
Domestic (Mt)
–
–
0.7
–
0.7
3
CV (kcal/kg)
–
–
4,500
–
4,500
4,500
Thermal Coal (Mt) Export (Mt)
6 –
– –
3 1
– –
3 1
3 1 5,800
CV (kcal/kg)
–
–
5,800
–
5,800
Domestic (Mt)
–
–
2
–
2
2
CV (kcal/kg)
–
–
4,500
–
4,500
4,500
Thermal Coal (Mt)
4
–
4
–
4
4
Domestic (Mt)
–
–
–
–
–
– 5,800
CV (kcal/kg)
–
–
5,800
–
5,800
Domestic (Mt)
–
–
4
–
4
4
CV (kcal/kg)
–
–
4,500
–
4,500
4,500
Anthracite (Mt)
12
–
6
–
6
7
Export (Mt)
–
–
5
–
5
6
CV (kcal/kg)
–
–
6,500
–
6,500
6,500
Domestic (Mt)
–
–
1
–
1
2
CV (kcal/kg)
–
–
6,500
–
6,500
6,500
Thermal Coal (Mt)
–
26
–
24
24
25
Export (Mt)
–
–
–
19
19
–
CV (kcal/kg)
–
–
–
4,500
4,500
–
Domestic (Mt)
–
–
–
5
5
25
CV (kcal/kg)
–
–
–
4,500
4,500
4,500
Thermal Coal (Mt)
–
48
–
33
33
33
Export (Mt)
–
–
–
18
18
18
6,000
6,000
6,000
CV (kcal/kg)
–
–
–
Domestic (Mt)
–
–
–
15
15
15
CV (kcal/kg)
–
–
–
4,500
4,500
4,500
Thermal Coal (Mt)
15
–
12
–
12
12
Domestic (Mt)
–
–
4
–
4
4 5,800
CV (kcal/kg)
–
–
5,800
–
5,800
Domestic (Mt)
–
–
8
–
8
8
CV (kcal/kg)
–
–
4,500
–
4,500
4,500
Competent Person
MC
MC
MC
MC
MC
MC
MC
* Springboklaagte is held as a Joint Venture between Shanduka and Umcebo, 100% of the Springboklaagte reserves are included in the table above under Shanduka and excluded from Umcebo.
54 Glencore - Resources & Reserves Report 2015
Energy Products Coal
South Africa Coal Reserves (continued)
Name of operation
Attributable Mining interest method
Umcebo
43.66% OC
Middelkraal
OC
Kleinfontein Jicama
Coal type
Extractable Coal Reserves Proved Probable 31.12.15 31.12.15
OC/UG
OC
Norwesco
Wildfontein
23.26%
Coal Reserves South Africa
OC
Total Saleable Coal Reserves 31.12.15
31.12.14
Thermal Coal (Mt)
42
–
28
–
28
31
Thermal Coal (Mt)
–
–
–
–
–
1
Domestic (Mt)
–
–
–
–
–
1
CV (kcal/kg)
–
–
–
–
–
4,500
Thermal Coal (Mt)
–
–
–
–
–
0.2
Export (Mt)
–
–
–
–
–
0.1
CV (kcal/kg)
–
–
–
–
–
6,000
Domestic (Mt)
–
–
–
–
–
0.2
CV (kcal/kg) Wonderfontein
Saleable Coal Reserves Proved Probable 31.12.15 31.12.15
– –
– 28
–
Thermal Coal (Mt)
– 42
–
– 28
4,500
Export (Mt)
–
–
22
–
22
24 5,700
30
CV (kcal/kg)
–
–
5,700
–
5,700
Domestic (Mt)
–
–
6
–
6
6
CV (kcal/kg)
–
4,500
–
4,500
4,500
Thermal Coal (Mt)
– 0.3
–
0.2
–
0.2
0.2
Export (Mt)
–
–
0.2
–
0.2
0.2 5,600
CV (kcal/kg)
–
–
5,600
–
5,600
Domestic (Mt)
–
–
0.05
–
0.05
0.05
CV (kcal/kg)
–
4,500
–
4,500
4,500
Thermal Coal (Mt)
– 2
–
2
–
2
–
Domestic (Mt)
–
–
2
–
2
–
CV (kcal/kg)
–
–
5,000
–
5,000
–
Thermal Coal (Mt)
748
334
477
193
670
701
Competent Person
HG
HG
HG
HG
AB
55 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Notes Valid prospecting rights have been issued for all the undeveloped Coal Resources. Some prospecting rights are being renewed, while application has been made for a number of mining rights.
Coal Reserve depletion due to mining: (-2.1Mt). Currently uneconomical reserves were taken out of the LOM plan including: No. 5 Seam OC pits (-1Mt), No. 2 Seam UG (-1Mt), Klippoortjie No. 4 Seam OC (-1.5Mt), No. 4 Seam SWC Development (-0.3Mt), and No. 4 Seam SWC Stooping (-1.7Mt), only No. 5 Seam Addcar Coal Reserves remaining.
Coal Resources have been re-estimated in 2015 for inclusion in this summary table except where otherwise stated. Revision of the totals includes changes to classifications of Coal Resource status due to exploration, geological reinterpretation and remodelling, and changes to lease holdings.
Tenements for Tweefontein South expire between August 2024 and August 2040. Coal Reserves for Tweefontein South are sufficient to support a mine life of 10 years.
Coal Resources and Reserve qualities are reported at an air dried moisture basis and Export Saleable Coal Reserves are reported at a net as received moisture basis. Coal Resources are reported inclusive of Coal Reserves.
Goedgevonden: Coal Resource depletion due to mining (-16.8Mt). Additional No. 4 and No. 2 Seam resources next to river diversion included (+32.2Mt). No. 4 and No. 2 Seam resources around Pre-Karoo sterilised due to spoils (-1.9Mt). Coal losses due to geological structures (-1.2Mt). Evaluation of No. 2 Seam pillars resulted in a gain in pillar resources due to a decrease in the original extraction factor (+1.2Mt). Seam thickness and footprint gain due to drilling and remodelling (+4Mt).
Product yields used to estimate Saleable Coal Reserves were derived from the “Limn Model” software. Inputs to this model are coal ply and in-seam dilution data, processed in the model. The model takes into account plant efficiencies to calculate practical yields. The model is calibrated to historical plant performance and where applicable, large diameter borehole data is used. Changes and notes relevant to the estimation of Coal Resources and Reserves are listed below for specific projects. Changes reported are exclusive of production from 31 December 2014 to 31 December 2015.
The Goedgevonden Complex is situated within the Witbank coal field. Opencast dragline mining operations in the area are extracting the No. 2, No. 4 and No. 5 seams. The No. 3 seam is too thin for practical extraction and the No.1 seam is not considered an economic Coal Resource in the area.
Coal Resource and Reserve totals are rounded to appropriate levels of accuracy in accordance with the 2007 SAMREC Code (as amended July 2009) and the Glencore Coal rounding process. In summary, Measured and Indicated Coal Resources are rounded to 1 significant figure if less than 10Mt and 2 significant figures if greater than 10Mt; calorific values are rounded to the nearest 50kcal/kg.
Coal Reserve depletion due to mining (-11.7Mt). Alignment of mine planning assumptions to reflect optimised mining sequence and practice, resulting in a net loss of -5.3Mt ROM, but an increase of 0.4Mt Saleable Coal Reserves. An additional gain of 11.1Mt of saleable production was realised through fines beneficiation. Tenements for Goedgevonden expire between February 2038 and May 2038. Coal Reserves for Goedgevonden are sufficient to support a mine life of 26 years.
Tweefontein Complex Tweefontein North: Coal Resource depletion due to mining: (-13.2Mt). Updated information on the extent of historic UG mining in the now opencast areas (+10Mt). Coal Resource gain in Boschmans South East Pit after additional drilling and remodelling added resource blocks (+0.6Mt).
iMpunzi iMpunzi North Coal Resource depletion due to mining (-7.5Mt). iMpunzi consists of iMpunzi Opencast (opencast dragline and truck and shovel operations) and iMpunzi Minipits (truck and shovel operations). The Opencast resources include the No.1, No. 2 and No. 4 seams, whilst the Minipit includes only the No. 4 seam.
The Tweefontein North development includes all five seams present in the Vryheid Formation, however, only the No.1, No. 2, No. 4 and No. 5 seams form part of the mineable and economic Coal Resources. The resources have the potential to be extracted via both opencast truck and shovel or dragline, and underground board and pillar mining methods.
Coal Reserve depletion due to mining: (-7.4Mt). Due to technical consideration the width of the South Pit barrier pillar was increased to 100 metres, resulting in a loss of Coal Reserves (-1.9Mt).
Coal Reserve depletion due to mining: (-12.2Mt). Loss of Coal Reserves due to the selective mining of the No. 4 seam in the OC, discarding the parting, which led to a drop in ROM, but an increase in yield (-5Mt). Loss of Coal Reserves on Vlaklaagte due to removal of currently uneconomic UG from the LOM: No. 1 seam (-13.6Mt), No. 4 seam (-5.7Mt), No. 5 seam (-10.7Mt), and No. 2 seam (-9Mt).
Mining Tenement for iMpunzi North expires in August 2040. Coal Reserves for iMpunzi North and East are sufficient to support a mine life of 25 years. iMpunzi East: Coal Resource depletion due to mining (-0.8Mt). A large portion of No.2 seam and a small area of No.4 seam have been previously mined via underground board and pillar method. The full seam is extracted through opencast mining methods – the lower zone of each seam was previously partially extracted by underground mining and the upper zone remains intact.
Mining Tenement for Tweefontein North expire in August 2020. Coal Reserves for Tweefontein North are sufficient to support a mine life of 19 years. Tweefontein South: Depletion due to mining: (-2.5Mt).
Depletion due to mining: 1Mt. Coal loss assumptions for the Rotary breaker was adjusted to reflect current practice, resulting in a decrease in ROM coal (marketable tonnes unaffected) (-2.4Mt). Change in the mining horizon definition resulted in a slight decrease in Coal Reserves but an increase in yield (-0.8Mt ROM).
Tweefontein South Complex is contained in the Tavistock and Klippoortje old order mining authorisations, situated within the Witbank Coalfield. The complex development includes all five seams, however, only the No.1, No. 2, No. 4 and No. 5 seams form part of the potentially mineable and economic Coal Resources. 56
Glencore - Resources & Reserves Report 2015
Energy Products Coal
Zonnebloem: The No. 1 and No. 2 seams are developed at Zonnebloem and will be extracted by opencast truck and shovel or dragline. Awaiting finalisation of the environmental licensing and permitting.
Springboklaagte is held as a Joint Venture between Shanduka and Umcebo, 100% of the Springboklaagte Coal Reserves and Resources is included in the table above. Graspan: Coal Resource depletion due to mining (-3.9Mt). Losses due to geological disturbances including wash-outs, pinching seams and geological structures (-0.4Mt).
Mining tenement for Zonnebloem expires in September 2039. Coal Reserves for Zonnebloem are sufficient to support a mine life of 24 years.
Coal Reserve depletion due to mining (-3.6Mt).
Oogiesfontein: There have been no changes to the Coal Resource or Reserve. A Section 102 application has been lodged to incorporate Oogiesfontein into the Goedgevonden Complex.
Townlands: No mining was conducted at Townlands and the reserves will be reported in future in the Graspan Coal Resources and Reserves.
Mining Tenement for Oogiesfontein expires in October 2018.
Steelcoal: No change in Coal Resources or Reserves, and the reserves have been earmarked as a future expansion to Graspan.
Paardekop: A mining right application was submitted in 2012. Awaiting approval of right and environmental licensing and permitting.
Lakeside and Leeuwfontein: No change to Coal Resources or Reserves, mines are on care and maintenance.
The only seam of economic importance in Paardekop project area is the Main seam which contains nearly 95% of the extractable coal. The seam has a mean thickness of 2.5m and is structurally almost flat. The upper zone is of poor CV whilst the lower zone has an average raw CV over 5,300kcal/kg. The project area comprises of underground resources in a single-seam deposit.
Springlake: Coal Resource depletion due to mining (-0.98Mt). Coal Reserve depletion due to mining (-0.96Mt). Mine layout changes implemented at Clive Shaft resulted in a decrease in Coal Reserves (-0.2Mt). Argent: There have been no changes to the Coal Resource estimate, awaiting mining right approval, and environmental licensing and permitting.
Undeveloped Coal Resources: The Coal Resource estimation includes: Amersfoort (contained in the southern portion of the Ermelo Coalfield, Mpumalanga province southwest of Breyten). Estimation for Amersfoort is based on the C seam which is at a depth of 200m and a thickness of 2.5m;
Decrease in Saleable Coal Reserves due to product optimization (-1.4Mt). Springboklaagte: There have been no changes to the Coal Resource estimate, awaiting mining right approval, and environmental licensing and permitting.
Boschmanspoort (located in the Witbank Coalfield of Mpumalanga southeast of Middleburg). Estimation for Boschmanspoort is based on the No. 2 seam which dips towards the east, therefore allowing some potential opencast resources in the west; and
Corobrik: The resource forms a natural extension to Graspan Colliery. There have been no changes to the Coal Resource estimate, awaiting mining right approval, environmental licensing and permitting.
Trichardsfontein (located north of Trichardt). Estimation for Trichardsfontein is based on the No. 4 seam lower at approximately 90m depth. The seam has potential for underground extraction.
Optimum: Is currently undergoing a sale process with completion effective 1 January 2016 (subject to certain conditions precedent). Coal Resources and Reserves have been removed from this report.
Mining right applications have been lodged for all the Undeveloped Coal Resources, awaiting mining rights, environmental licensing and permitting.
Umcebo: The remaining mine life of the individual mining operations range up to 10 years. Expiry date of relevant mining/concession licenses are different for each mine, ranging from October 2015 to December 2021 in respect of Middelkraal, Kleinfontein, Klippan and Doornrug. Norwesco mining right lapsed on 28 September 2011; however a renewal has been lodged. Wonderfontein had a mining right granted in February 2012.
Shanduka: The remaining mine life for individual mining operations range from 3 to 12 years, based on the Coal Reserves except for the Springboklaagte deposit that extends Shanduka’s expected life by approximately 20 to 25 years. Expiry date of relevant mining/concession licenses are different for each mine, ranging from October 2015 to March 2027 in respect of Graspan, Townlands, Steelcoal, Lakeside and Springlake. Leeuwfontein remains an ‘old order right’ or mining license, with applications pending for conversion into a ‘new order right’ or mining license (only upon conversion will the expiry date be known). Springboklaagte is a prospecting right, which is granted for 5 year periods and are renewable for a further 3 year period. The main prospecting right expired on 3 August 2011 and an application for the renewal of the prospecting right was lodged on 3 June 2011. Further to this an application for a mining right was also lodged in April 2011. Argent had a prospecting right valid until 29 June 2013. An application for a mining right was also lodged in December 2012.
Middelkraal: Coal Resource depletion due to mining: (-0.8Mt). Only un-mineable pillar (-0.2Mt) and sterilised coal in berms (-0.6Mt) are remaining. Depletion due to mining: (-0.9Mt). Coal Reserve depleted, and only un-mineable pillar remaining (-0.19Mt). Kleinfontein: Coal Resource depleted and only unrecoverable pillar remaining (0.5Mt). Removed from Coal Resources. Klippan: The mine is currently closed with 4.2Mt of Coal Resources remaining. Kleinfontein Jicama: Mining commenced in 2015. Coal Resource depletion due to mining: (-0.66Mt). Coal Reserve depletion due to mining: (-0.5Mt). Coal Reserve now totally depleted. 57 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Competent Persons:
Wonderfontein: Coal Resource depletion due to mining (-2.7Mt).
AB = Allen Bullock; N.H.Dip. Coal Mining; Pr Sc Nat (400059/98); Director, Hlagisa Mining (Pty) Ltd.
Norwesco, Doornrug, Hendrina and Belfast: future projects and there are no changes in Coal Resources or Reserves for the current reporting period.
CT = Chris Theart; ND, NHD Metal Mining; SAIMM (706513); Group Mining Engineer, Glencore Coal South Africa. GC = Gerrit Cronjé, BSc Hons Geology; Pr Sc Nat 400128/86, employed by Shanduka Coal (Pty) Ltd.545.
Hlagisa: Wildfontein is held under a Joint Venture agreement between Umcebo and Hlagisa. Wildfontein is an opencast truck and shovel operation and has a 2 year LOM.
HC = Hlayiseka Chauke; B Tech Mining Engineering; MCC; employed by Optimum Coal (Pty) Ltd. HG = Hugo Grobler B Engineering Mining; MSc Engineering Mining; MCC, SAIMM; employed by Shanduka Coal (Pty) Ltd. KD = Karin van Deventer; (MSc Geochemistry; Pr Sc Nat 400705/15, employed by Glencore Coal South Africa. MC = Mark Cunney, BEng Hons Mining Engineering, MCC; Pr Cert Eng 2007 0114, employed by Shanduka Coal (Pty) Ltd. MS = Marius Smith; B Sc. Honours Geology; MBA; Pr Sc Nat 400075/03; Group Coal Geologist, Glencore Coal South Africa. RR = Rohan Roach; B Com; B Tech Mine Engineering; Coal Mine Managers Certificate of Competency, Metalliferous Mine Managers Certificate of Competency; SAIMM, ECSA; Group Mining Engineer, Glencore Coal South Africa. TH = Trevor Howard; B Eng. Mining; Coal Mine Managers Certificate of Competency; SAIMM (701062); Group Mining Engineer, Glencore Coal South Africa. WH = Willem Heyneke, B Tech Mining Engineering, MCC; Pr Cert Eng 2008 900 44, who is employed by subsidiary company of Optimum Coal (Pty) Ltd.
58 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Colombia Coal Resources and Reserves Prodeco Coal Resources
Name of operation
Attributable Mining interest Method
Calenturitas
100%
OC
La Jagua
100%
OC
Coal Resources Prodeco
Commodity
Measured Coal Resources 31.12.15 31.12.14
Indicated Coal Resources 31.12.15 31.12.14
Inferred Coal Resources Competent 31.12.15 31.12.14 Person
Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg)
110 6,300 75 7,100
110 6,330 90 7,100
190 6,200 30 7,050
220 6,270 20 7,060
70 6,250 – –
70 6,200 – –
Thermal Coal (Mt)
185
200
220
240
70
70
KJW KJW
Prodeco Coal Reserves
Name of operation
Attributable Mining interest method
Calenturitas
100%
OC
La Jagua
100%
OC
Coal Reserves Prodeco
Coal type
Coal Reserves Proved Probable 31.12.15 31.12.15
Marketable Coal Reserves Proved Probable 31.12.15 31.12.15
Total Marketable Coal Reserves 31.12.15
31.12.14
Thermal Coal (Mt) CV (kcal/kg) Thermal Coal (Mt) CV (kcal/kg)
55 6,200 65 6,800
55 6,000 25 6,700
55 6,200 65 6,800
55 6,000 25 6,700
110 6,100 90 6,750
170 6,150 100 6,750
Thermal Coal (Mt)
120
80
120
80
200
270
Competent Person
GL GL
Cerrejón Coal Resources
Name of operation
Carbones del Cerrejón
Attributable Mining interest Method
33.3%
OC
Commodity
Measured Coal Resources 31.12.15 31.12.14
Thermal Coal (Mt) CV (kcal/kg)
2,950 6,550
3,300 6,600
Indicated Coal Resources 31.12.15 31.12.14
1,150 6,550
1,100 6,550
Inferred Coal Resources Competent 31.12.15 31.12.14 Person
800 6,550
700 6,550
GH
Cerrejón Coal Reserves
Name of operation
Carbones del Cerrejón
Attributable Mining interest method
33.3%
OC
Coal type
Extractable Coal Reserves Proved Probable 31.12.15 31.12.15
Thermal Coal (Mt) CV (kcal/kg)
530 6,150
100 6,200
Saleable Coal Reserves Proved Probable 31.12.15 31.12.15
520 6,100
90 6,100
Total Saleable Coal Reserves 31.12.15
31.12.14
610 6,100
650 6,200
Competent Person
GH
Notes Glencore’s Colombian coal interests are located in two different coal provinces; La Guajira Department (Cerrejón) and Cesar Department (Prodeco).
seams. Additional Inferred Coal Resources (+6Mt) reported for seams C155-C130 in the south of Sector A. Marketable Coal Reserves depletion due to mining (-11.0Mt). Coal Reserves sterilisation in steep dip areas (-3.0Mt). Coal Reserves have been decreased due to economic assessment (-43.0Mt).
Coal Reserves are reported on a ROM moisture basis. Coal Resources are reported on an in situ moisture basis. Coal Resource and Coal Reserve estimates tabulated above are stated on a total mine basis as at 31 December 2015.
Remaining mine life expected to be 13 years. Expiry date of relevant mining/concession licenses: 2035.
Coal Resource qualities are reported at an in situ moisture basis and Coal Reserve qualities are reported at a gross as received basis.
La Jagua: Historical records and a recent drill hole provided additional data to rebuild the surface under a spoil pile in the eastern flank of the syncline within the Carbones de La Jagua (CDJ) area. Updated topography limiting coal seams were found to be higher than previously modelled (+0.8Mt). Base of weathering updated using recent drill hole data and review of weathering horizon (+0.3Mt). Area in the west flank and CDJ leases 0.4Mt of coal mainly in seam M45 was sterilised for pit stability. Geological model update, including latest drill hole data and pit mapping, led to a reclassification of Measured (-15Mt) and Indicated (+10Mt) Coal Resources, mostly in the deepest part of the basin below Cerro de Piedra.
Changes and issues material to the estimation of Coal Resources and Reserves are noted below for specific projects. Reference to production changes between 31 December 2014 and 31 December 2015 are summarised for each producing mine site. Prodeco: Calenturitas: The geological model was updated with new exploration and mining data that resulted in a decrease of coal seam thickness near the identified fault in Sector A and within the steep dip areas of Sector A and the northern area of Sector B (-9.0Mt Indicated and -7.0Mt Inferred Coal Resources). A small decrease of 0.3Mt due to update of base of weathering using new exploration and in-pit data. Indicated Coal Resources for seams C195-C120 in Sector CD were removed (-8.7Mt) due to low potential for mining these thin
Marketable Coal Reserves depletion due to mining was (-7.0Mt). Seam 45 in south-eastern corner of the deposit is now included based on new drilling in the area (1.1Mt). Remaining mine life expected to be 13 years. Expiry date of relevant mining/concession licenses: Carbones El Tesoro 59 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Competent Persons
(CET) and Carbones de La Jagua (CDJ) expire between 2027 and 2038.
GL = Guillermo Leon, Senior Mining Engineer, Prodeco, (AusIMM).
Some tenements have expired and Renewal Applications have been submitted.
KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd (AusIMM).
Cerrejón: Coal Resources are reported as gross tonnes in situ (GTIS) with no geological losses applied. The Coal Resources occur within a geoshell constrained by the horizontal and vertical distribution of data within the drill hole (data limits) envelope. Coal Resources include coal for which the continuity, quality and mineability are established but are outside the current LOM plan. There are approximately 220Mt of coal that occurs within the geoshell and under mining restricted areas within 1km of major towns. This coal has not been included in the Coal Resources in 2015. These Coal Resources comply with current and foreseen mining and marketing criteria and have economic potential.
GH = German Hernandez; BSc, BHPBilliton Certificate of Competent Person; GSSA; APS Geology Superintendent, Carbones del Cerrejón.
Coal Reserves have reduced by 40Mt due principally to depletion by mining (-33.1Mt). The estimates of Coal Resources and Reserves presented in this table for Cerrejón have been prepared in accordance with the 2007 SAMREC Code (South African Code for Reporting of Mineral Resources and Mineral Reserves) (as amended July 2009).
60 Glencore - Resources & Reserves Report 2015
Energy Products Coal
Canada Coal Resources
Name of operation
Attributable Mining interest Method
Suska
75%
OC
Sukunka
75%
UG/OC
Coal Resources Canada
Commodity
Measured Coal Resources 31.12.15 31.12.14
Indicated Coal Resources 31.12.15 31.12.14
Inferred Coal Resources 31.12.15 31.12.14
Coking/Thermal Coal (Mt) CV (kcal/kg) Coking Coal (Mt)
– – 45
– – 45
13 6,100 100
13 6,100 100
90 6,100 40
90 6,100 40
Coking/Thermal Coal (Mt)
45
45
113
113
130
130
Qualified Person
KJW KJW
Notes
Competent Persons
The Canadian Coal Resources and Reserves occur in the Peace River area of the Province of British Columbia (Sukunka, Suska). Additional tenements adjacent to these Peace River projects are targeted for exploration. These include tenement areas identified as Central South, South Cirque and other tenements that extend north and south of the Pine River.
KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd (AusIMM).
Coal Resource tonnage and quality are reported at an in situ moisture basis. Coal Resources are reported in accordance with the JORC Code 2012 edition. There has been no coal mined from the Glencore Canadian coal assets in 2015. Suska: Coal Resources have not been re-estimated since 2013. Sukunka: Very minor Coal Resource changes resulting from 2015 recent exploration. Improved coal seam correlations and an updated geological model led to increased resource confidence in some parts in the north of the deposit. Coal Resources reported include seams from Upper and Lower Members of the Gething Formation. Open cut and underground mining studies are in progress. No Coal Reserves are reported, at the end of December 2015.
61 Glencore - Resources & Reserves Report 2015
Energy Products Oil Net Reserves (Proven and Probable)
1
Equatorial Guinea Oil mmbbl
31 December 2014 Revisions Acquisitions/Divestments Discoveries Production 31 December 2015
Gas bcf
25 – – – (6) 19
Net Contingent Resources (2C)
Chad Oil mmbbl
– – – – – –
150 1 – 21 (6) 166
Oil mmbbl
1
Gas bcf
– – – – – –
Oil mmbbl
– – – – – –
Total Gas bcf
– – – – – –
Oil mmbbl
Gas bcf
175 1 – 21 (12) 185
– – – – – –
Combined mmboe
175 1 – 21 (12) 185
1
Equatorial Guinea
31 December 2014 Revisions Acquisitions/Divestments Discoveries 31 December 2015
Working Interest Basis Cameroon
23 – – – 23
Gas bcf
Chad Oil mmbbl
562 – – – 562
9 – – – 9
Working Interest Basis Cameroon Gas bcf
– – – – –
Oil mmbbl
53 – (6) – 47
Total Gas bcf
714 – (119) – 595
Oil mmbbl
85 – (6) – 79
Gas bcf
1,276 – (119) – 1,157
Combined mmboe
305 – (26) – 278
"Net" Reserves or Resources are equivalent to Glencore's working interest in the asset/property.
Notes The Badila field is an onshore development which came on stream in September 2013. Oil is transported through an export pipeline to the Chad/Cameroon export pipeline (Totco/Cotco pipeline) with off-take at the Marine Terminal in Cameroon. Average gross 2015 production stands at 13,300 barrels per day. Badila has an anticipated 13 year life from first oil.
Equatorial Guinea: Equatorial Guinea Reserves and Contingent Resources consist of Block O (Glencore 25% working interest (“WI”)) and Block I (Glencore 23.75% WI) reserves and resources. The Aseng field (Block I, 23.75% WI) came on stream in November 2011. The field is produced from subsea wells tied back to an FPSO. Average 2015 gross production was 33,600 barrels per day. Aseng has an anticipated 11 year life from first oil.
The Mangara field is an onshore development that has been producing since late December 2014. Gross production in 2015 averaged 7,900 barrels per day. Oil is transported through an export pipeline to the Totco/Cotco pipeline with off-take at the Marine Terminal in Cameroon. Mangara has an anticipated 13 year life from first oil.
The Alen field (95% Block O, 25% working interest and 5% Block I, 23.75% working interest) came on stream in May 2013. Gross production in 2015 averaged 29,400 barrels per day. The field is produced from subsea wells tied back to a production platform where condensate is stripped and transported to the Aseng FPSO via a subsea pipeline. The produced gas is re-injected into the field. Alen has an anticipated 8 year life from first oil.
The EXA's have a 25 year exploitation term after the authorisation of the EXA. Reserves for Chad were independently assessed by McDaniel & Associates (McDaniel), have been prepared in accordance with PRMS and have been extracted without material adjustment from the McDaniel report dated 31 December 2015. Contingent Resources are based on Glencore estimates and have been prepared in accordance with PRMS.
The Aseng and Alen fields have a 25 year exploitation term from approval of a plan of development. Reserves for Equatorial Guinea were independently assessed by Gaffney, Cline & Associates (GCA), have been prepared in accordance with the Petroleum Resources Management System (PRMS) and have been extracted without material adjustment from the GCA report dated 31 December 2015. Contingent Resources are based on Glencore and GCA estimates and have been prepared in accordance with PRMS.
Cameroon: Glencore holds 100% WI of the Bolongo license and 75% WI of the Matanda license (following a 15% divestment in Q4 2015). Technical and development studies are underway on the Bolongo license. There are no Reserves currently attributable to Cameroon. Contingent Resources are based on Glencore estimates and have been prepared in accordance with PRMS.
Chad: Following on from the 2014 acquisition of Caracal, Glencore holds a majority WI in the DOB/DOI, Doseo/Borogop and DOH production sharing contracts. Glencore now holds an 85% WI in the Badila and Mangara oil field Exclusive Exploitation Authorisations (EXAs). In addition McDaniel have classified the Kibea, Baouda East and Krim discovered fields as reserves in which Glencore has a 75% WI.
62 Glencore - Resources & Reserves Report 2015
