Glencore Operations in South Africa: Overview & Mining Rights
Glencore Operations in South Africa encompass coal, chrome ore, ferrochrome, and vanadium production. The company holds mining rights in Limpopo, Northwest, and Mpumalanga provinces, focusing on environmental compliance and financial provision. Despite global issues, Glencore's activities in South Africa are notable for their workforce and operational sites.
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Presentation to the Portfolio Committee on Mineral Resources and Energy on Glencore Operations in South Africa 1 November 2022
PRESENTATION OUTLINE Background Overview of Glencore Operations SA Mining Rights Issued in Limpopo Mining Rights issued in Northwest Mining Rights issued in Mpumalanga Environmental compliance(Financial Provision) Conclusion
BACKGROUND In May 2022 Glencore International A.G. entered into a Plea Agreement with the United States Department of Justice In terms of the Agreement, Glencore admitted to engaging in conduct that violated the Foreign Corrupt Practices Act of the United States of America The offences admitted to were committed with parties in the US, Brazil, Mexico, Venezuela, Cameroon, Ivory Coast, Equatorial Guinea, Nigeria and the Democratic Republic of Congo The offences appeared to have been mainly in Oil Trading Nowhere in the 97 Page Agreement is South Africa or Subsidiaries of Glencore in RSA mentioned In response to above offences, the Portfolio Committee directed the Department should present Glencore s activities in South Africa
OVERVIEW OF GLENCORE OPERATIONS SA Glencore Operations SA (Pty) Ltd is the producer of Coal, Chrome ore, Ferrochrome and Vanadium. The company produces thermal coal for export and domestic power generation from its operations in Mpumalanga. Its Ferroalloys mines are located in both the Northwest and Limpopo Provinces. The vanadium mine is located in the Northwest Province. Glencore also Acquired the Astron refinery and its associated Service Stations from Chevron
MINING RIGHTS ISSUED TO GLENCORE LIMPOPO REGION Glencore SA (Pty) Ltd was issued with a converted mining right for Chrome mining on the 17 December 2009 for a maximum period of 30 years on the farm Helena, Thorncliffe and Magareng It is an underground operation situated within mineral rich bushveld complex of south Africa ( Sekhukhune) It is located approximately 35 KM south of Steelpoort and about 33 km northwest of Lydenburg. Glencore Operations has three shafts namely Helena, Magareng and Thorncliffe. The mine employs 12300 employees including contractors.
MINING RIGHTS ISSUED TO GLENCORE NORTH WEST REGION KROONDAL MINE Glencore SA (Pty) Ltd/Kroondal Mine is part of Glencore Merafe Venture and has 4 mining rights for Chrome and PGM mining, issued on the 20/02/2007, 28/09/2008, 30/09/2008 and 18/06/2009 respectively, all for a maximum period of 30 years on various portions of the farm Kroondal 304 JQ, Rustenburg. It is an underground operation situated within mineral rich bushveld complex of south Africa (Bojanala, Rustenburg). It is located approximately 10 KM east of Rustenburg. Glencore Operations/Kroondal Mine has one shaft only. The mine employs 898 employees including 542 contractors
MINING RIGHTS ISSUED TO GLENCORE NORTH WEST REGION RHOVAN MINE Glencore SA (Pty) Ltd/Rhovan Mine has 1 mining right for Vanadium, Iron Ore, Silicon and Calcium mining, issued on the 03/08/2007, for a maximum period of 20 years on the farms Berseba 397 JQ, Losperfontein 405 JQ, and Leeuwpen 403 JQ, Rustenburg. It is an opencast operation situated within mineral rich bushveld complex of south Africa (Bojanala, Rustenburg) It is located approximately 35 KM north-east of Rustenburg. The mine employs 720 employees including 273 contractors.
MINING RIGHTS ISSUED TO GLENCORE NORTH WEST REGION BOSCHHOEK MINE Glencore SA (Pty) Ltd/Boschhoek Mine has 1 mining right for Chrome mining, issued on the 03/08/2007, for a maximum period of 15 years on the farms Boschhoek 103 JQ, Boekenhoutfontein 260 JQ, and Bultfontein 205 JQ, Rustenburg. It is an opencast operation situated within mineral rich bushveld complex of south Africa (Bojanala, Rustenburg) It is located approximately 30 KM north-west of Rustenburg town. The mine does not have any employees as it is not operational. The mine has applied for a Renewal in 2022.
MINING RIGHTS ISSUED TO GLENCORE NORTH WEST REGION WATERVAL MINE Glencore SA (Pty) Ltd/Waterval Mine has 2 mining rights for Chrome and PGM mining, issued on the 20/02/2007 and 28/09/2008 respectively, for a maximum period of 30 years on various portions of the farm Waterval 306 JQ, and various portions of the farm Waterval 307 JQ, Rustenburg. It is an underground operation situated within mineral rich bushveld complex of south Africa (Bojanala, Rustenburg) It is located approximately 03 KM east of Rustenburg town. The mine employs 14 employees including 35 contractors. The mine was placed on care and maintenance in 2019, and now is in process to develop new opencast for UG1.
MINING RIGHTS ISSUED TO GLENCORE NORTH WEST REGION RIETVLY MINE Glencore SA (Pty) Ltd/Rietvly Mine has 3 mining rights for Silica mining, issued on the 08/01/2007, 08/03/2007, and 18/06/2009 respectively, for a maximum period of 30 years on various portions of the farm Rietvly 271 JQ, Rustenburg. It is an opencast operation situated within mineral rich bushveld complex of south Africa (Bojanala, Rustenburg) It is located approximately 10 KM west of Rustenburg town. The mine employs 19 employees including 38 contractors.
ENVIRONMENTAL COMPLIANCE MERRAFE CHROME MINE The company submitted latest environmental liability assessment done in March 2022. Closure cost report reflects the current closure cost amounts to R27 502 999.29 The company has a bank guarantee to the amount of R26 193 332.66. The shortfall amount of R1 309 666.63 has since been addressed in a form of guarantee submitted on 13/09/2022 .
ENVIRONMENTAL COMPLIANCE KROONDAL MINE The current environmental liability of the mine amounts to R38 155 025,95. The Department holds a financial provision for R41 673 241.91 in the form of a Bank Guarantee. The financial provision is regarded as sufficient for now.
ENVIRONMENTAL COMPLIANCE THORNCLIFF,MAGARENG & HELENA The current environmental liability for the mine amount to the value of R 158 949 698 The department has a financial provision from the mine to the amount of R 127 963 094,86. The leaves the mine to have Shortall to the value of R 30 986 603,14.
ENVIRONMENTAL COMPLIANCE WATERVAL MINE The current environmental liability of the mine amounts to R56 676 138.35. The Department holds financial provision in the amount of R55 502 014.45 in the form of a guarantee. There is a shortfall in financial provision(R1 174 123.90) Due date for payment is 31/10/2022.
ENVIRONMENTAL COMPLIANCE RHOVAN MINE The current environmental liability amounts to R223 578 247.03 The Department holds a bank guarantees in the amount of R248 631 966.20. The operation is regarded as adequately funded.
