Analyst Visit, Ravensworth North 29 September 2014
Sell-side analyst visit Coal
29 September 2014
Forward looking statements
This document contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may be identified by the use of forward looking terminology, or the negative thereof such as "plans", "expects" or "does not expect", "is expected", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks", "intends", "positioned", "predicts", "anticipates" or "does not anticipate", or "believes", or variations of such words or comparable terminology and phrases or statements that certain actions, events or results "may", "could", "should", “shall”, "would", "might" or "will" be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy.
By their nature, forward looking statements involve known and unknown risks and uncertainties, many of which are beyond Glencore’s control. Forward looking statements are not guarantees of future performance and may and often do differ materially from actual results. Important factors that could cause these uncertainties include, but are not limited to, those discussed under “Principal risks and uncertainties” of Glencore’s Annual Report 2013 and “Risks and uncertainties” in Glencore’s 2014 Half-Year Report.
Neither Glencore nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. You are cautioned not to place undue reliance on these forward-looking statements which only speak as of the date of this document. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and the Listing Requirements of the Johannesburg Stock Exchange Limited), Glencore is not under any obligation and Glencore and its affiliates expressly disclaim any intention, obligation or undertaking to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. This document shall not, under any circumstances, create any implication that there has been no change in the business or affairs of Glencore since the date of this document or that the information contained herein is correct as at any time subsequent to its date.
No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Glencore share for the current or future financial years would necessarily match or exceed the historical published earnings per Glencore share.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this document does not constitute a recommendation regarding any securities.
2
Agenda
• Welcome – Senior Management Team
• Tor Peterson – Head of Coal Marketing • Thermal coal market outlook
• Peter Freyberg – Head of Coal Assets • Global asset overview
• Questions
3
Leading Coal Portfolio
22 operating coal complexes
Exporting equity coal through 9 ports
40Mtpa, low cost rail business
#1 in high energy export thermal coal Significant position in export
metallurgical coal
Diversified global footprint
58.4
15.8
0 10 20 30 40
Others
BHP
Anglo
Drummond
Glencore
Mt
COLOMBIA
0 10 20 30 40 50 60
Sasol
Exxaro
BHPB
Anglo
Glencore
Mt
SOUTH AFRICA
0 20 40 60 80 100
Anglo
Peabody
Rio Tinto
BHPB
Glencore
Mt
AUSTRALIA
Australia proforma for full year Clermont. Includes export and domestic coal sales 4
Supportive thermal coal seaborne market outlook
• Attractive long-term thermal coal market fundamentals remain in place based on economics and availability
• Seaborne thermal coal is more than a China story • energy key to emerging market growth / industrialisation • thermal coal central to this for the foreseeable future
• Thermal demand growth projected at 5% pa; slowing supply growth • Lack of ongoing investment helping to rebalance the market
• Our export coal business is the largest, most diversified, best positioned on margin curve and possesses the greatest growth optionality • majors either don't have much thermal coal or are under-investing as viewed as non-core
5
China re-balances supply and demand
6
Net imports have grown by 350Mt in the last 10 years
Long term impact on coal demand driven by Chinese economic growth • A sustained GDP growth rate of around 7% pa would see the Chinese economy double in 10 years • Elasticity of electricity with respect to GDP in China is ~1.0, declining over time • Even with lower growth rates energy demand will grow significantly • We expect at least 50% of new electricity demand will need to be met with coal based generation • The Chinese economy will require significant coal feedstock for conversion purposes
As expected, China is addressing air pollution issues • Imposition of coal quality constraints • Principal impact on inefficient industrial boilers and utilities • Action to address urban pollution will include remotely produced coal based electricity and coal based gas • Utilities with de-sulphurisation and particulate controls expected to be excluded from current pollution
measures • Sulphur relaxation permissible for coking coal
Over 2 billion tonnes of Chinese domestic coal production capacity does not meet the quality criteria / environmental objectives for the 3 identified regions
Glencore's product portfolio, trading position and embedded optionality means we are well positioned to manage market dynamics
• Change creates arbitrage opportunities upon which our trading business is built
India has emerged as the dominant growth market
7
• 12th 5yr plan • $36bn invested in generation
capacity • $61bn invested in transmission
capacity
• Coal fired capacity • Currently 145GW installed • Target 214GW installed by 2020
• 65.5% capacity utilisation and >26%
transmission losses • 10% capacity improvement = 48Mt
coal demand with no new installed generation capacity
• New installed capacity adds 345Mt coal demand
0
50
100
150
200
250
300
350
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Indonesia South Africa Australia USA Others
Indian thermal coal imports (Mt)
YTD Annualised
Sources: CEA, Government budget, Glencore
Forecast range
0
200
400
600
800
1'000
1'200
2011 2012 2013 2014F 2015F 2016F 2017F
China India Japan KoreaTaiwan Germany Other
1,114
Market update – thermal coal supply and demand
8
Seaborne thermal coal demand (Mt)
792
880 931
960 1,019
1,063
Source: Glencore
-100
-80
-60
-40
-20
0
20
2011 2012 2013 2014 2015 2016 2017
Supply Demand Balance (Mt)
Supply growth exceeded demand • Chinese repositioning creating uncertainty
Demand growth forecast at +5% pa (+50Mtpa) over next 3 years • Supply growth expected to lag
Thermal coal margins will need to increase to support investment in new capacity
0
50
100
150
200
250
300
350
400
2011 2012 2013 2014F 2015F 2016F 2017F
China India Japan KoreaTaiwan EU Other
Market update – metallurgical coal supply and demand
9
Seaborne metallurgical coal demand (Mt)
261 280
312 308 317 322 324
Source: Glencore
Demand reduction yoy from 2013 / 2014 • Supply growth is being constrained due to demand
growth and lower prices during 2013 / 2014
Constrained demand growth forecast • < 2% over the next 3 years
Current metallurgical coal margins are expected to lead to further mine closures
-100
-80
-60
-40
-20
0
20
2011 2012 2013 2014 2015 2016 2017
Supply Demand Balance (Mt)
Glencore best positioned for current and future markets
Mt Seaborne thermal coal supply
GlencoreMajor 1Major 2Major 3Major 4Major 5Major 6Major 7Major 8Other
10 Source: Glencore
FOB thermal coal cash margins at current market prices ($/t)
Best in Class Operator
Leader in safe operations
12
Group coal safety performance • Visible leadership a key management approach
• Strong focus on management of catastrophic risks and risk controls
• SafeCoal initiative established 12 Fatal Hazard Protocols now rolled out across Glencore in SafeWork
• Efficient assurance and verification processes
• Consistent improvement in LTIFR and TRIFR
0
5
10
15
2009 2010 2011 2012 2013 2014YTD
Inju
ries
per m
illion
hou
rs w
orke
d
TRIFR LTIFR
2010 2011 2012 2013 H1 2014
Prod
uctiv
ity (
Bcm
.m3/
Annu
m)
Leader in operational performance
13
Glencore Coal - Tier 1 All T & S Loading Units Fleet Performance
Undergrounds • Blakefield South best performing longwall in
Australia for FY 13/14 • 3 of top 4 longwalls in Australia (Blakefield
South, Oaky North and Ulan West1) • Glencore has had the highest producing
longwall in Australia for the last 10 years • Ulan West longwall commenced 3 months
ahead of schedule • Development and tonnage ramp up ahead of
budget • Initial run rate positions Ulan West productivity
within top 3 producers in Australia • South African continuous miners performing at the
top end of 2 seam sections
Open Cuts • 26% increase in Tier 1 loading unit
performance • Compared to global trend of declining
performance2
1 Based on annualised production since commissioning 2 Source PwC Report “Mining for Efficiency” August 2014
Open cut mining efficiency
• PwC provided an independent assessment of Australian and Global mining equipment performance over the period 2002-2013
• Glencore performance across the board compares very favourably
• Glencore equipment performance is higher than the industry medium and best practices
• Whilst productivity trends have reduced (pre August 2014) Glencore excavator units continues to improve
• Similar leading operational performance by Glencore is also demonstrated in other loading unit categories
14 Source: Glencore data and PwC Report “Mining for Efficiency” August 2014
Hydraulic Excavator Performance Summary 2009
Glencore – ‘Tier 1’ Hydraulic Excavators
2009 Actual
Liebherr Liebherr Liebherr Liebherr Liebherr Liebherr Hitachi Hitachi Hitachi O&K Liebherr Hitachi Liebherr Hitachi Hitachi Hitachi Hitachi O&K Hitachi Hitachi O&K O&K O&K Hitachi Hitachi Cat Cat Hitachi Cat R996 996 996B R996B R996B 996 EX5500 EX3600 EX5500 RH 170B R9400 EX3600 996B EX3600 EX3600 EX5600 EX2500 RH 340B EX3600 EX5500 RH 170B RH 170B RH 170B EX3600 EX3600 6040 6050 EX2500 6060
Newlands Mt Owen Mangoola Liddell Liddell Mt Owen Rav Ops Calenturitas Glendell La Jagua Mangoola Calenturitas Mt Owen Calenturitas Calenturitas Bulga Glendell La Jagua Calenturitas Glendell La Jagua La Jagua La Jagua Calenturitas Calenturitas Rav Ops La Jagua Glendell Calenturitas
Glencore - Hydraulic Excavators Q2-2014 - Tier 1
Operational Best
Practice
Glencore – ‘Tier 1’ Hydraulic Excavators
15
Hydraulic Excavator Performance Summary 2014
Glencore – ‘Tier 1’ Hydraulic Excavators
2009 Actual
Liebherr Liebherr Liebherr Liebherr Liebherr Liebherr Hitachi Hitachi Hitachi O&K Liebherr Hitachi Liebherr Hitachi Hitachi Hitachi Hitachi O&K Hitachi Hitachi O&K O&K O&K Hitachi Hitachi Cat Cat Hitachi Cat R996 996 996B R996B R996B 996 EX5500 EX3600 EX5500 RH 170B R9400 EX3600 996B EX3600 EX3600 EX5600 EX2500 RH 340B EX3600 EX5500 RH 170B RH 170B RH 170B EX3600 EX3600 6040 6050 EX2500 6060
Newlands Mt Owen Mangoola Liddell Liddell Mt Owen Rav Ops Calenturitas Glendell La Jagua Mangoola Calenturitas Mt Owen Calenturitas Calenturitas Bulga Glendell La Jagua Calenturitas Glendell La Jagua La Jagua La Jagua Calenturitas Calenturitas Rav Ops La Jagua Glendell Calenturitas
Glencore - Hydraulic Excavators Q2-2014 - Tier 1
Operational Best
Practice
Glencore – ‘Tier 1’ Hydraulic Excavators
16
25
50
75
FY 12 FOB cashcosts
Inflation FX Real saving 1H 14 FOB cashcosts
US $/t Chart Title
US $1.8bn cost improvement since 2012
Sustained reduction in FOB cash costs since 2012, achieved through: • Reduced overheads • Optimisation of underground rosters • 20% improvement in reliability of
underground development • Increased productivities – 26%
improvement in productivity of Tier 1 shovels & excavators
• Removal of high cost production • Rationalisation of contractor spend • Negotiations with key suppliers • New production firmly in first quartile
(Ulan West, Rolleston expansion, Clermont)
17
Uncontrollable Controllable
Focus shift from growth to margin….
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Other Producers
2015 Surplus port contracted capacity as a percentage of contract1
Significantly lower 2015 take-or-pay exposure than other exporters Glencore maintains a strategic advantage over other coal exporters in Australia through a significantly lower 2015 take-or-pay exposure
18
Contracted Capacity (Mt)
Surplus (Mt)
Surplus as % Contracted
Total industry ~475 ~100 21%
1 All ports except Brisbane and PKCT, based on 2015 forecast production
Coal assets totaling 196 Mtpa (installed)
19
Managed Production (Mt)*
Australia Interest 2012 2013 2014** Installed
Mt Owen / Glendell 100% 9.1 8.8 8.8 9.0
Mangoola 100% 8.2 8.2 10.2 10.3
Tahmoor 100% 1.6 2.0 1.4 2.2
Ravensworth 90% 6.0 8.5 8.6 12.0
Ulan 90% 6.1 6.5 7.2 15.0
West Wallsend 80% 3.3 3.1 3.0 3.3
Rolleston 75% 8.9 10.2 11.4 12.0
Bulga 68.3% 9.8 11.0 11.4 11.4
Liddell 67.5% 4.6 4.6 4.0 4.6
Collinsville 55% 3.4 2.4 1.8 4.0
Newlands 55% 5.9 7.1 7.2 7.4
Oaky Creek 55% 7.5 8.0 7.6 8.0
Clermont 25% - - 11.4 13.0
Total 74 81 94** 112
Managed Production (Mt)*
South Africa Interest 2012 2013 2014 ** Installed
Tweefontein 79.8% 7.2 7.2 7.4 7.2
Impunzi 79.8% 6.3 5.1 5.6 6.7
GGV 74% 7.7 7.6 7.0 7.7
Optimum 67.6% 11.0 10.1 9.8 11.2
Koornfontein 67.6% 2.8 2.4 1.8 2.8
Shanduka 49.9% 6.3 6.5 5.6 6.3
Umcebo 45.7% 7.1 6.7 7.2 7.7
Total 48 46 42** 50
Total Coal 148 157 168** 196
Managed Production (Mt)*
Colombia Interest 2012 2013 2014 ** Installed
Prodeco 100% 14.8 18.6 20.2 21
Cerrejón* 33% 11.5 11.0 11.8 13.3
Total 26 30 32** 34
*Production figures on a managed basis except Cerrejón. Percentage refers to Glencore’s attributable interest. ** 2014 based on H1 14 production annualised, Clermont included on a pro-forma basis.
Growth and optionality
Growth and optionality
Organic and acquisition growth • Synergistic and targeted acquisition strategy • Successful delivery of high returning projects • Early cashflow to improve returns • High margin assets positioned favourable on the cost curve
21 *Production figures on a managed basis except Cerrejón 33% equity interest
-
20
40
60
80
100
120
140
160
180
2006 2007 2008 2009 2010 2011 2012 2013
Man
aged
sal
eabl
e pr
oduc
tion
(Mt)
Colombia*
South Africa
Australia
Production growth history
History of creating value through acquisitions of adjacent resources and brownfield expansions
22
Australia •Mt Owen Complex: Mt Owen (BHP), Glendell/Liddell (Savage Resources), Rav East (Rio Tinto)
•Ravensworth North: Cumnock (listed co.), Narama (50% Rio Tinto; 50% Iluka), Rav West (Rio Tinto), RCT(RSP)
Colombia •Prodeco: Calenturitas (local entrepreneur), Carbones de La Jagua (Caribe), CMU (Consorcio Minero Unido), CET (Carbones el Tesoro)
South Africa • Impunzi: ATCOM OC (50% Duiker; 50% Total) with rationalisation of Vandyksdrift (BHP B), DTJV (JCI)
•Tweefontein: Boschmans, Witcons, Waterpan (Duiker) •GGV project: GGV (Duiker); Zaaiwater (Anglo) •Optimum Complex: Optimum ; Zonnebloem (Xstrata)
Brownfield expansions in Australia
•Delivered projects: Beltana, Glendell, Rolleston, Wollombi, Liddell, Mangoola, Blakefield South, Ulan West
•Pipeline projects: Mt Owen extension, Liddell extension, Bulga life extension, Rolleston Phase II expansion, Mangoola extension
Clermont coal mine acquisition
• Recently developed open cut thermal coal mine
• Minimal future capital requirements • Product coal transported 13.5km by conveyor
to rail loadout • Truck & shovel fleet feed In-Pit Crushing and
Conveying system (IPCC); now ex-pit • Low cost operation (1st quartile margin),
underpinned by 3.3:1 LOM strip ratio • Connected by rail to DBCT (280km) and
Abbott Point (380km) • Ownership: Glencore/Sumitomo 50.1%,
Mitsubishi 31.4%, J-Power 15%, JCD 3.5%
23
Clermont: optimisation under Glencore management
• Acquisition price of US$1,015m for Rio Tinto’s 50.1% stake, through GS Coal (owned 50:50 by Glencore & Sumitomo)
• Successfully syndicated bank facility provided US$550m of debt to GS Coal
• Cash contribution by Glencore of approximately US$270m after transaction costs
• Glencore appointed manager for operating and marketing entity, earning relevant fees
• Closed 31 May 2014
Changed management structure, reduced overall numbers
Program in place to bring equipment productivity up to Glencore standards
Steady state output expected to be in excess of 13 Mtpa product
Lowered operating costs
Improving resource recovery
Review of E-IPCC
24
Glencore post acquisition initiatives
1
2
3
4
5
6
Coal project pipeline update
25
2013 2014 2015 2016
Ravensworth North 8Mtpa brownfield capacity
Australia Complete
Puerto Nuevo 21Mtpa port capacity
Colombia Complete
Ulan West 8Mtpa brownfield capacity
Australia Commissioned May 14
Tweefontein 8Mtpa brownfield capacity
South Africa Expected commissioning Q4
Cerrejón 7Mtpa brownfield
capacity Colombia
2016+ Mt Owen extension, Liddell extension, Bulga life extension, Rolleston Phase II, Mangoola extension, GGV expansion, Optimum/Zonnebloem
Ulan West Project delivered
26
Underground mine entry
First longwall shear
Asset details • 90% Glencore • 8Mtpa export thermal coal • 14 year mine life • First quartile cash cost at full production
Project details • Approved 2010 Construction update • Longwall commenced operating May 2014
– 3 months ahead of schedule and on budget US $1.2bn
Tweefontein Optimisation Project update
27
Coal Processing Plant
Rail load-out
Asset details • Glencore effective ownership: 79.8% • Capex: US $823m • Brownfields expansion of existing operations
• replacement of 3 old processing plants with modern plant
• construction of rapid loading rail terminal • development of large open cut mine with 7
pits and owner operated fleet • Production capacity: 13.6Mtpa ROM; 7Mtpa
Saleable • Thermal: 75% Export; 25% Domestic
Project status • Rail loadout commissioned and operational • Plant operational Q4 2014 • Project completion Q2 2015 • Ahead of schedule, under budget
Cerrejón P40 update
28
Marine works
Ship loader
Asset details • 33% Glencore / 33% Anglo / 33% BHPB • +20 year mine life • By-pass export thermal coal • First quartile cash cost
Project details • 95% complete • Mine expansion, upgraded rail & second ship
loading facility • Ship loader currently being commissioned
Ravensworth North
Hunter Valley overview
30
10kmMangoola
Liddell Mt OwenGlendell
Rav UGRav Nth
United(Project)
Bulga OCBulga UG
Mt Pleasant(Project)
Bengalla
HV Ops
Warkworth
Mt Thorley
Rail
UlanUlan WestUlan OC
XC NSW Operations
C&A Operations
Hunter Valley, NSW
• Opportunities: • Maximised recovery –
• open pit boundaries
• undeveloped undergrounds
• Operational sequencing
• Implementation of best practices
• Product optimisation
• Blending opportunities
• Logistics management
• Overhead reduction
• Procurement
Glencore Operations
31
31
Ravensworth North
Ravensworth North
Pit Shell
Hunter River
Mt Owen
Glendell
Ravensworth Surface Operations
Ravensworth Underground
Liddell
31
Ravensworth North
32
Mine development
Life of Mine production profile
Asset details • 90% Glencore / 10% Itochu • Brownfield project • 8Mtpa, export thermal 80% and semi-soft
coking 20% • 23 year mine life • Second quartile cash cost
Project scope • Upgrade to Ravensworth CHPP and
stockpile facilities • Relocation of roads and power lines • Ultra class truck and shovel fleets • MIA, water and rail infrastructure
Project details • Project commenced 2011 • First coal produced 2012 utilising existing
CHPP capacity at Ravensworth UG • Project completed Q4 2013
Delivered on time, on budget at US$1.4bn
-
2
4
6
8
-
5
10
15
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Strip
ratio
Prod
uctio
n (M
t)
ROM Product Strip ratio
Ravensworth North History
33
The transactions
combined enabled
development of one of the
Hunter Valley’s largest
brownfield developments
CHPP, rail load-out
facilities and tenure. Enabled consolidation of leases with Cumnock &
Narama
Surface access to enable out of
pit dumping
Obtained control of site infrastructure,
mining equipment and
tenure
Narama - Buy out Iluka 50% interest
Aug 2007
MacGen / Coal & Allied
Access agreements
2010 /11
Resource Pacific
- Off-market takeover
Mar 2011
Ravensworth North Project delivered on
time, on budget
Sept 2014
Cumnock OC
Ravensworth West
Narama
Ravensworth Ops off Lemington Road
Exploration license granted
Complex project approval
34
Exploration license granted
Project combines: • Multiple surface titles • Varying stratified mining
depth approvals • Negotiating a number of
minority joint venture interests
• Obtaining adjacent landholder consents
To achieve a combined Ravensworth North project approval
Q&A
Ravensworth North - Induction & tour guide slides
Ravensworth Operations - Site safety requirements
• When in the Mine or CHPP the following PPE must be worn: • Hi-vis shirt or vest
• Safety helmet
• Safety glasses
• Steel toe boots
• No smoking is permitted on site
• It is prohibited to be under the influence of alcohol or illicit drugs on this site
• Stay with a site representative at all times, follow their instruction & do not wander off or near highwalls edges - Always remain behind safety fences, bunds or windrows
• In case of emergency follow the directions of your site representative
• All Incidents, Near Misses and Hazards must be reported to your site representative ASAP
• Be careful where you walk and uneven surfaces in the mine
37
Safety and Environmental care are of paramount importance
https://www.google.com.au/url?q=http://coalfaceworkwear.com.au/&sa=U&ei=nkErU96XFM_ZkgWaq4GQAw&ved=0CC8Q9QEwAQ&usg=AFQjCNEhp8MBlnQf10MRRYY-Dp5uF9R2pw
— Tour Route — NE Hwy — Railway Viewing Point
38
Narama
ROM Ravensworth
North Operations MIA
WEA Dump
RCHPP
Tour Plan
Narama West
Mine planning – geology • Coal seams extend from the Bulga
Formation through to the Foybrook Formation of the Wittingham Coal Measures
• Over 64 coal working sections • Coal thickness 0.3 – 4.0m • Approx 40% coals 270m • Relatively flat dipping deposit with a
number of regional faults / dykes • 280Mt ROM resources • Avg Strip Ratio 5.2:1
39 Copy to go here
Loading Units • 3x Cat 6090 Shovels (980t) • 1x Cat 6060 Excavator (600t) • 3x Cat 6040 Excavators (350t) • 2x LeTourneau L-1850 Loaders
Trucks • 23x Cat 797F XQ Haul Trucks • 31x Cat 789 Haul Trucks • 4x Cat 789D XQ Water Trucks • 2x Cat 775F Service Trucks
Drills • 2x Cat MD6420 Drill Rigs • 2x Cat MD6290 Drill Rigs
Dozers • 8x Cat D11T Track Dozers • 4x Cat D10T Track Dozers • 4x Cat D11T CHPP Dozers • 3x Cat 854K Rubber Tyre Dozers
Ancillaries • 2x Cat 24M Graders • 1x Cat 16M Grader
40
Mobile equipment
Sell-side analyst visit�CoalSlide Number 2AgendaLeading Coal PortfolioSupportive thermal coal seaborne market outlookChina re-balances supply and demand�India has emerged as the dominant growth marketMarket update – thermal coal supply and demandMarket update – metallurgical coal supply and demandGlencore best positioned for current and future marketsBest in Class OperatorLeader in safe operationsLeader in operational performanceOpen cut mining efficiency�Hydraulic Excavator Performance Summary �Hydraulic Excavator Performance Summary US $1.8bn cost improvement since 2012Significantly lower 2015 take-or-pay exposure than �other exportersCoal assets totaling 196 Mtpa (installed)Growth and optionalityGrowth and optionalityHistory of creating value through acquisitions of adjacent resources and brownfield expansionsClermont coal mine acquisitionClermont: optimisation under Glencore managementCoal project pipeline updateUlan West Project deliveredTweefontein Optimisation Project updateCerrejón P40 updateRavensworth North�Hunter Valley overviewSlide Number 31Ravensworth NorthRavensworth North HistoryComplex project approvalQ&ARavensworth North - Induction & tour guide slidesRavensworth Operations - Site safety requirementsTour PlanMine planning – geologySlide Number 40