Glencore PLC Prodeco to relinquish mining contracts (0565O)
February 04 2021 - 8:18AM
UK Regulatory
TIDMGLEN
RNS Number : 0565O
Glencore PLC
04 February 2021
Glencore plc
Baar, Switzerland
4 February 2021
Prodeco to relinquish mining contracts
Glencore can confirm that its Colombian subsidiary, Prodeco will
commence the process of handing its mining contracts back to the
Republic of Colombia through the National Mining Agency (ANM). The
mines will remain on care and maintenance (C&M) until the
formal process of relinquishing the contracts is complete. The port
will continue to operate in line with its obligations as a public
service port.
Last month the Colombian National Mining Agency (ANM) declined
Prodeco's request for the Calenturitas and La Jagua mines to remain
on C&M. Further to ANM's decision to decline Prodeco's request,
Prodeco conducted another operational review to identify further
cost efficiencies, given that the ANM expected prices to remain low
in Prodeco's target markets. The conclusion of the review was no
different to previous ones conducted by the business; it continues
to remain uneconomic to re-commence operations.
The decision to relinquish the mining contracts was not taken
lightly and is a disappointing outcome. Grupo Prodeco has over the
last 30 years invested in excess of US$3bn and paid almost US$3bn
in royalties and taxes. We are proud that our investment in a
multitude of social engagement projects and initiatives, has
delivered tangible improvements in the quality of life for the
surrounding communities, and supported the important Peace Process
in Colombia.
Prodeco's key priority is its workforce and local
communities.
Prodeco will engage with its employees, contractors and host
communities on the impact of relinquishing the titles. Prodeco has
re-commenced the voluntary redundancy programme which significantly
exceeds the statutory requirements under Colombian law.
This process will also be supported by a social transition
programme for the workforce and the communities surrounding
Prodeco's operations.
Further updates will be issued as appropriate.
For further information please contact:
Investors
Martin Fewings t: +41 41 709 2880 m: +41 79 737 5642 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 60 responsibly-sourced commodities that advance everyday
life. The Group's operations comprise around 150 mining and
metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both 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 oil sectors. We also provide financing, logistics
and other services to producers and consumers of commodities.
Glencore's companies employ around 145,000 people, including
contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative. Our ambition is to be a net
zero total emissions company by 2050.
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