Glencore: Proposal to sell Glencore’s Bolivian zinc asset



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Baar, Switzerland – Glencore announces today that it has entered into an agreement with Santa Cruz Silver Mine, Ltd (“Santa Cruz”) to acquire the holding companies which own the Bolivian zinc assets of Glencore, including Sinchi wayra and Illapa (each as defined in the appendix).

Glencore will receive an initial amount of $ 20 million (subject to customary working capital adjustments) (the “Initial Consideration Amount”) at the Completion Date and another $ 90 million (the “Deferred Consideration Amount”) payable within 4 years or less (depending on certain mandatory market provisions and prepayment) of completion.

Completion of the sale is conditional, but not limited to obtaining certain regulatory approvals in accordance with Canada and is expected to occur within the next three months.

Upon completion, Glencore will enter into a number of net smelter royalty agreements at 1.5% each with respect to Bolivian mining activities with Santa Cruz, which provide for a continuous life of mine payments based on the performance of the mines concerned. Glencore will also retain the offtake rights throughout the life of the mine with respect to production from the affected mines.

BMO Capital Markets is acting as financial advisor to Glencore in connection with the transaction.

Contact:

Investors

Martin Fewings

Phone. : +41 41 709 28 80

phone: +41 79 737 56 42

[email protected]

Media

Charles Watenphul

Phone. : +41 41 709 24 62

phone: +41 79 904 33 20

[email protected]

Notes for Editors

Glencore is one of the world’s largest diversified natural resources companies and a leading producer and distributor of more than 60 responsibly sourced raw materials that advance everyday lives. The Group’s activities include around 150 mining and metallurgical sites and oil production assets.

With a strong presence in more than 35 countries in established and emerging regions for natural resources, Glencore’s industrial activities are supported by a global network of more than 30 marketing offices. Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and petroleum industries. We also provide financing, logistics and other services to producers and consumers of raw materials. Glencore companies employ approximately 135,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and International Council on Mining and Metals. We actively participate in the Extractive Industries Transparency Initiative. Our ambition is to be a net zero emissions company by 2050.

Annex

Glencore’s Bolivian zinc assets include:

Sinchi Wayra SA (100% stake), which owns the Reserva, Tres Amigos and Colquechaquita mines, the Don Diego concentrator and power plants, the Sorocaya project and San Lucas (‘Sinchi wayra‘); and

Sociedad Minera Illapa SA (“Illapa”) (100% interest) which owns a 45% contractual joint venture right in the Porco and Bolivar mines (the “Illapa Mines”). Corporación Minera From Bolivia (“COMIBOL”) will continue to own the Illapa mines and will retain a 55% joint venture contractual right to them.

Disclaimer

The companies in which Glencore plc a directly and indirectly an interest are separate and distinct legal entities. In this document, ‘Glencore’, ‘Glencore group’ and ‘Group’ are used for convenience only when reference is made to Glencore plc and its subsidiaries in general. These collective expressions are used for information purposes only and do not imply any other relationship between the companies. Likewise, the words “we”, “our” and “our” are also used to refer collectively to the members of the Group or those who work for them. These expressions are also used when it is not useful to identify the particular company or companies.

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