GLN: Acquisition of a 77% interest in Teck’s steelmaking coal business for US$6.93 bn

GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955

Baar, Switzerland
14 November 2023


Acquisition of a 77% interest in Teck's steelmaking coal business for US$6.93 bn

Glencore plc ("Glencore") announces that it has entered into a binding agreement with Teck Resources
Limited ("Teck"), for the acquisition of a 77% effective interest in the entirety of Teck's steelmaking coal
business, Elk Valley Resources ("EVR"), for US$6.93 bn in cash, on a cash free debt free basis, subject to a
normalised level of working capital.

Concurrently, Teck has agreed with Nippon Steel Corporation ("NSC") that its current 2.5% interest in
Elkview Operations will be rolled up to equity in EVR, and that NSC will acquire additional equity in EVR
from Teck, such that on closing NSC will hold a 20% equity interest in EVR.

POSCO has advised Teck that it intends to exchange its current 2.5% interest in Elkview Operations and
its 20% interest in the Greenhills joint venture, for a 3% interest in EVR.

At closing, Glencore will also acquire from Teck, NSC and POSCO's attributable share of a shareholder
loan from Teck to EVR which is repayable out of EVR's cash flows. The amount payable for this portion
of the loan is expected to be some US$250-US$300 million on closing.

The transaction is subject to mandatory regulatory approvals, being Investment Canada Act ("ICA") and
competition approvals. The transaction is expected to close in Q3 2024.

Commenting on the transaction, Gary Nagle, CEO of Glencore, said:

"We are pleased to have reached agreement to acquire Teck's steelmaking coal operations in the Elk
Valley. These world-class assets and the experienced people that operate them are expected to
meaningfully complement our existing thermal and steelmaking coal production located in Australia,
Colombia and South Africa.

"Glencore has high regard for the business that has been developed over many decades in British
Columbia and looks forward to maintaining and enhancing its operational performance,
environmental stewardship and social contribution.

"We are dedicated to working with all governing bodies and stakeholders to ensure that the transaction
is of benefit to Canada, which includes a commitment from Glencore regarding employment, engaging
in further reclamation efforts and to engage constructively and meaningfully with the Indigenous
Nations in the Elk Valley.

"This transaction also deepens our longstanding commitment to Canada, supporting our position as
one of the largest diversified miners and suppliers of critical minerals in Canada, in one of the world's
leading mining jurisdictions.

We have a longstanding relationship with NSC and POSCO and we look forward to working closely with
them as our future partners in EVR."

Overview of EVR

On close, assuming the POSCO roll-up proceeds, EVR will own 100% interests in the entities holding the
Elkview, Fording River, Greenhills and Line Creek mines in Southeast British Columbia, and 46% of
Neptune Terminals in North Vancouver.


Key historical information on EVR, as reported by Teck, is outlined below:

    -   Production of steelmaking coal of 21.5 mt in 2022 and 17.3 mt year to date to 30 September 2023
    -   EBITDA of C$7.4 bn in 2022 and C$3.7 bn year to date to 30 September 2023
    -   Profit before tax of C$6.0 bn in 2022 and C$3.1 bn year to date to 30 September 2023
    -   Gross assets as at 30 September 2023 of C$18.5 bn

Global population growth, increased urbanisation, and a growing middle class should continue to drive
long-term demand for steel and the steelmaking coal required to produce it. The high-quality
steelmaking coal mined in the Elk Valley is an essential input to steelmaking in its current form. Steel is
necessary for constructing transportation and infrastructure such as ocean-going vessels, rail, bridges
and buildings, as well as energy transition infrastructure including wind turbines, all such products being
critical to our current and future way of life.

Benefits to Canada

Glencore has a proven history and track record of acquiring, developing, operating and rehabilitating
coal mines, for the benefit of stakeholders, including employees, local communities, and host
governments.

Glencore's Canadian assets form a significant part of our global business with c. 9,000 people in Canada
including contractors and have a history that dates back more than 100 years. Glencore is one of the
largest diversified miners and suppliers of critical minerals in Canada. Our current operations span seven
industrial assets producing and recycling mainly nickel, copper, zinc and cobalt.

Glencore has a strong track record of investment in the country and is committed to building on EVR's
continuing success as a world-class Canadian steelmaking coal producer with a focus on social and
environmental responsibility. In this respect, consistent with Glencore's long history of success in, and
commitment to, Canada, under the terms of the agreement with Teck, Glencore will offer to enter into
commitments with the Canadian government under the ICA that will ensure, among other things, that:

    •   EVR will continue to operate in Canada through both a Vancouver head office and regional
        offices in Calgary, Alberta, and Sparwood, British Columbia, including completing the
        construction of a new Sparwood office.
    •   EVR will maintain significant employment levels in Canada with no net reduction in the number
        of employees in the business in Canada as a result of the transaction.
    •   EVR will increase capital expenditures in Canada such that they will amount to over C$2 billion
        (excluding deferred stripping) over three years.
    •   EVR will increase research and development activities in Canada to at least C$150 million over
        three years, including on innovation in relation to water quality treatment technologies – a 50%
        increase over current levels.
    •   EVR will increase its contributions to Canadian sponsorship, community and charitable
        programs.
    •   EVR will participate as a major funding partner with up to C$15 million for the proposed
        renal/oncology addition to the East Kootenay Regional Hospital in Cranbrook.
    •   EVR will have a goal to become a nature positive business by conserving or rehabilitating at least
        three hectares for every one hectare affected by its mining activities going forward.
    •   EVR will develop and implement a climate transition strategy which will include medium term
        scope 1 and 2 emissions reduction targets, a long-term goal of net zero in respect of scope 1 and
        2 emissions by 2050 as well as a commitment to work with partners towards an ambition to
        achieve net-zero Scope 3 emissions by 2050.
    •   EVR will honour the existing agreements between EVR and Indigenous Nations and will work
        with local Indigenous Nations to identify opportunities to increase participation in benefits from
        the activities of EVR.

A summary of these commitments is set out in the Appendix to this announcement.


Demerger

Glencore continues to believe that a standalone company containing its combined coal and carbon steel
materials business, including Glencore's stake in EVR, would be well positioned as a leading, highly cash-
generative bulk commodity company, likely attracting strong investor demand given such yield
potential.

As before, Glencore therefore intends to demerge the combined business, once Glencore has sufficiently
delevered, which is expected to occur within 24 months from close. Glencore will manage its post-
demerger balance sheet, post servicing its formulaic base cash distribution, to a revised c.US$5 billion
net debt cap, down from the current level of c.US$10 billion, alongside our continued commitment to
minimum strong BBB/Baa ratings.

Glencore intends for the demerged company to continue to oversee the responsible decline of its
thermal coal operations in line with Glencore's current targets and ambition to achieve net zero by 2050,
with a supportive policy environment, and to adopt the climate transition strategy for the EVR business
that will be developed and implemented pursuant to Glencore's ICA commitments.

For further information please contact:
Investors
Martin Fewings          t: +41 41 709 28 80   m: +41 79 737 56 42    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
This announcement contains inside information.

Glencore LEI: 2138002658CPO9NBH955



                                                Appendix 1

                                Summary of Proposed ICA Commitments


Glencore will submit to the Director of Investments written undertakings to His Majesty the King in right
of Canada that are consistent with all of the commitments set out below, each of which shall have a term
of three years commencing from closing of the acquisition of EVR.

   1.    EVR will continue to be operated through an entity incorporated under the laws of Canada or of
         a province or territory thereof.

   2.    EVR will maintain its Canadian head office in Vancouver, British Columbia, and will have regional
         offices in Calgary, Alberta, and Sparwood, British Columbia, that will oversee and support EVR's
         operations. EVR's offices will perform a wide range of functions in Canada including finance
         (management reporting and budgeting, internal controls and assurance, financial reporting and
         accounting), logistics, research and innovation, technical services, community and government
         affairs, legal, ESG engagement, stakeholder relations, human resources, compliance, regulatory
         and public affairs.

   3.    EVR will complete construction of the new office facility in Sparwood, British Columbia.

   4.    At least a majority of the directors of EVR, and at least a majority of executive and senior
         management level roles of EVR, will be comprised of Canadians.

   5.    In the event of a public listing of a company that, directly or indirectly, owns EVR following a
         demerger, during the term of these undertakings, the company whose shares are listed will have
         a listing on the Toronto Stock Exchange (TSX) and Canadians will participate on the board of
         directors of any such listed company.

   6.    EVR will continue to have significant employment levels in Canada.

   7.    EVR will maintain the terms of its current collective bargaining agreements and when they expire
         negotiate in good faith the terms of the new agreements.

   8.    EVR will maintain and, where appropriate, enhance health and other benefits provided to its
         employees.

   9.    Canadians will be given a full and fair opportunity to apply and compete for employment
         opportunities that arise at EVR in Canada; separately, opportunities will be created for Canadians
         to obtain international experience in Glencore's global operations.

   10. EVR will increase capital expenditures such that they will amount to over C$2 billion over the term
       of the undertakings, not including deferred stripping.

   11.   EVR will undertake significant research and development activities in Canada, totalling at least
         C$150 million over the term of the undertakings, including on innovation to develop water quality
         treatment technologies.

   12. EVR will continue to use Canadian and Indigenous suppliers of goods and services in a manner
       consistent with its past practice.

   13. EVR will spend at least C$30 million on sponsorship, community and charitable programs in local
       communities over the term of the undertakings which will include honoring EVR's existing
       commitments in respect of specific projects and ongoing participation in local community events
       and charities investing in improvements to housing and daycare access.

   14. EVR will participate as a major funding partner for the proposed renal/oncology addition to the
       East Kootenay Regional Hospital in Cranbrook should it proceed, with a funding commitment of
       up to C$15 million.

   15. EVR will continue to maintain in Canada all of its registered Canadian IP (namely patents,
       trademark registrations, and copyright registrations).

   16. EVR will maintain or, where appropriate, enhance its training and development programs.

   17. EVR will maintain a Graduate program that provides at least 40 Engineer-in-
       Training/Professional-in-Training graduate positions per year to people with mining and mining
       industry related technical qualifications from universities in Canada.

   18. EVR will maintain a co-op training program for university students to help build a pipeline of
       Canadian mining professionals in a range of disciplines which could include mining engineering,
       geotechnical engineering, geology, mechanical engineering, electrical engineering, process
       engineering, environmental science, organizational development, health & safety, business and
       information technology. This training program will support a cohort of at least 220 students
       annually.

   19. EVR will maintain its participation in relevant Canadian industry associations.

   20. EVR will spend at least C$200 million on rehabilitation and closure activities over the term of the
       undertakings and will implement Glencore's Policies and Standards in relation to rehabilitation
       and closure which includes:

        a.   closure practices that are aligned to international good practice including those of the
             ICMM;

        b.   progressive rehabilitation being undertaken wherever possible;

        c.   having a credible closure plan in place that could be initiated at any time;

        d.   external financial provisioning, as required by the relevant regulatory authority in the
             jurisdiction, e.g., bonds, payments or other, based on the rehabilitation liability for the
             current disturbance footprint;

        e.   internal provisioning for post-closure costs that matches the asset's specified closure
             objective; and

        f.   ensuring that consideration has been given to all options for post operational land use.

    21. EVR will have a goal to becoming a nature positive business by conserving or rehabilitating at
        least three hectares for every one hectare affected by its mining activities going forward.

    22. EVR will continue to implement the Elk Valley Water Quality Plan, including by continuing
        ongoing research and development aimed at developing and implementing innovations to
        manage and improve water quality in relation to its operations.

    23. EVR will develop and implement a climate transition strategy for its business that will include:

        a.   medium term targets in respect of Scope 1 and Scope 2 emissions at EVR's operations
             which will seek to achieve or enhance the existing goals or targets set by EVR having
             regard to what is practical and feasible given existing technologies;

        b.   a long-term goal to net zero in respect of Scope 1 and 2 emissions by 2050; and

        c.   a commitment to work with partners towards an ambition to achieve net-zero Scope 3
             emissions by 2050, recognising that achievement is uncertain and we cannot ensure the
             outcome alone;

    24. EVR will implement Glencore's ethics and compliance programme and will appoint a Regional
        Compliance Officer for its business.

    25. EVR will maintain and, where appropriate, enhance its corporate policies regarding diversity and
        inclusion and health and safety.

    26. EVR will implement Glencore's Group Sustainability Framework with the following specific goals:

        a.   Protecting its people and communities' health and promoting well being;

        b.   Protecting its people by creating workplaces free from fatalities and injuries;

        c.   Being a responsible operator who minimises and mitigates its impacts on the
             environment and seeks opportunities to protect and restore ecosystems where we
             operate;

        d.   Ensuring the safe, responsible and sustainable management of its Tailings Storage
             Facilities; and

        e.   Being a trusted community partner and supporter of socio-economic opportunity.

    27. EVR will honour the existing agreements between Teck Coal Limited and Indigenous Nations in
        a manner commensurate with its past practice, and will work with local Indigenous Nations to
        identify opportunities to increase participation in benefits from the activities of EVR.

    28. Glencore or EVR, as appropriate, will notify the Director of Investments at least five days prior to
        the implementation of any decision that would materially affect the performance of these
        undertakings.


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 commodities that advance everyday life. Through a network of
assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and
distribute the commodities that support decarbonisation while meeting the energy needs of today.
With around 140,000 employees and contractors and a strong footprint in over 35 countries in both
established and emerging regions for natural resources, our marketing and industrial activities are
supported by a global network of more than 40 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 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.

We recognise our responsibility to contribute to the global effort to achieve the goals of the Paris
Agreement by decarbonising our own operational footprint. We believe that we should take a holistic
approach and have considered our commitment through the lens of our global industrial emissions.
Against a 2019 baseline, we are committed to reducing our Scope 1, 2 and 3 industrial emissions by 15%
by the end of 2026, 50% by the end of 2035 and we have an ambition to achieve net zero industrial
emissions by the end of 2050. For more detail see our 2022 Climate Report on the publication page of
our website at glencore.com/publications.

linkedin.com/company/glencore
twitter.com/glencore
instagram.com/glencoreplc
facebook.com/glencore
youtube.com/glencorevideos

Disclaimer
This document is not intended to, and does not constitute, represent or form part of any offer, invitation or
solicitation of any offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any
securities or the solicitation of any vote or approval in any jurisdiction. Any securities referred to herein have
not been registered under the US Securities Act of 1933, as amended and may not be offered or sold in the
United States absent registration or an applicable exemption from registration requirements. No shares are
being offered to the public by means of this communication.
Given the focus of this document, it is necessarily oriented towards future events and therefore contains statements
that are, or may be deemed to be, "forward-looking statements" which are prospective in nature. Such statements
may include (without limitation) statements in respect of trends in commodity prices and currency exchange rates;
demand for commodities; reserves and resources and production forecasts; expectations, plans, strategies and
objectives of management; climate scenarios; sustainability performance (including, without limitation,
environmental, social and governance) related goals, ambitions, targets, intentions, visions, milestones and
aspirations; approval of certain projects and consummation of certain transactions (including, without limitation,
acquisitions and disposals); closures or divestments of certain assets, operations or facilities (including, without
limitation, associated costs); capital costs and scheduling; operating costs and supply of materials and skilled
employees; financings; anticipated productive lives of projects, mines and facilities; provisions and contingent
liabilities; and tax, legal and regulatory developments. These forward-looking statements may be identified by the use
of forward-looking terminology, or the negative thereof including, without limitation, "outlook", "guidance", "trend",
"plans", "expects", "continues", "assumes", "is subject to", "budget", "scheduled", "estimates", "aims", "forecasts", "risks",
"intends", "positioned", "predicts", "projects", "anticipates", "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. The information in this document provides an insight into how we
currently intend to direct the management of our businesses and assets and to deploy our capital to help us
implement our strategy. The matters disclosed in this document are a 'point in time' disclosure only. 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 conditions
and discussions of strategy, and reflect judgments, assumptions, estimates and other information available as at the
date of this document or the date of the corresponding planning or scenario analysis process. By their nature, forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results,
performance or achievements to differ materially from any future event, results, performance, achievements or other
outcomes expressed or implied by such forward-looking statements. Important factors that could impact these

uncertainties include (without limitation) those disclosed in the risk management section of our latest Annual Report
and Half-Year Report (which can each be found on our website). These risks and uncertainties may materially affect
the timing and feasibility of particular developments. Other factors which impact risks and uncertainties include,
without limitation: the ability to produce and transport products profitably; demand for our products; changes to the
assumptions regarding the recoverable value of our tangible and intangible assets; changes in environmental
scenarios and related regulations, including (without limitation) transition risks and the evolution and development
of the global transition to a low carbon economy; recovery rates and other operational capabilities; health, safety,
environmental or social performance incidents; natural catastrophes or adverse geological conditions, including
(without limitation) the physical risks associated with climate change; the outcome of litigation or enforcement or
regulatory proceedings; the effect of foreign currency exchange rates on market prices and operating costs; actions
by governmental authorities, such as changes in taxation or regulation or changes in the decarbonisation plans of
other countries; and political uncertainty. Readers, including (without limitation) investors and prospective investors,
should review and take into account these risks and uncertainties (as well as the other risks identified in this
document) when considering the information contained in this document. Readers should also note that the high
degree of uncertainty around the nature, timing and magnitude of climate-related risks, and the uncertainty as to
how the energy transition will evolve, makes it difficult to determine and disclose the risks and their potential impacts
with precision.

Neither Glencore nor any of its affiliates, associates, employees, directors, officers or advisers, provides any
representation, warranty, assurance or guarantee (in each case whether express or implied): (i) as to the accuracy or
completeness of the information contained in this document, or otherwise made available, nor as to the
reasonableness of any assumption contained herein or therein; or (ii) that the occurrence of the events, results,
performance, achievements or other outcomes expressed or implied in any forward-looking statements in this
document will actually occur, and in each case and any liability therefor (including in respect of direct, indirect,
consequential loss or damage) is expressly disclaimed. Glencore cautions readers against reliance on any forward-
looking statements contained in this document, particularly in light of the long-term time horizon for some
statements and the inherent uncertainty in possible policy, market and technological developments in future.

No statement in this document is intended as any kind of forecast (including, without limitation, a profit forecast or a
profit estimate), guarantees or predictions of future events or performance and past performance cannot be relied
on as a guide to future performance. Neither Glencore nor any of its affiliates, associates, employees, directors, officers
or advisers, provides any representation, warranty, assurance or guarantee as to the accuracy, completeness or
correctness, likelihood of achievement or reasonableness of any forward-looking information contained in this
document. Glencore operates in a dynamic and uncertain market and external environment. Plans and strategies can
and must adapt in response to dynamic market conditions, joint venture decisions, new opportunities that might
arise or other changing circumstances. Investors should not assume that our strategy on climate change will not
evolve and be updated as time passes. Additionally, a number of aspects of our strategy involve developments or
workstreams that are complex and may be delayed, more costly than anticipated or unsuccessful for many reasons,
including (without limitation) reasons that are outside of Glencore's control. There are inherent limitations to scenario
analysis and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis relies on
assumptions that may or may not be, or prove to be, correct and that may or may not eventuate and scenarios may
also be impacted by additional factors to the assumptions disclosed. Given these limitations we treat these scenarios
as one of several inputs that we consider in our climate strategy. Due to the inherent uncertainty and limitations in
measuring greenhouse gas (GHG) emissions and operational energy consumption under the calculation
methodologies used in the preparation of such data, all CO2e emissions and operational energy consumption data or
volume references (including, without limitation, ratios and/or percentages) in this document are estimates. There
may also be differences in the manner that third parties calculate or report such data compared to Glencore, which
means that third-party data may not be comparable to Glencore's data. For information on how we calculate our
emissions and operational energy consumption data, see our latest Basis of Reporting, Climate Report and Extended
ESG Data, which can be found on our website. 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. Except as required by
applicable regulations or by law, 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. Certain statistical and other
information about Glencore included in this document is sourced from publicly available third-party sources. As such
it has not been independently verified and presents the view of those third parties, but may not necessarily
correspond to the views held by Glencore and Glencore expressly disclaims any responsibility for, or liability in respect
of, and makes no representation or guarantee in relation to, such information (including, without limitation, as to its
accuracy, completeness or whether it is current). Glencore cautions readers against reliance on any of the industry,
market or other third-party data or information contained in this document. Subject to any terms implied by law
which cannot be excluded, Glencore accepts no responsibility for any loss, damage, cost or expense (whether direct
or indirect) incurred by any person as a result of any error, omission or misrepresentation in information
in this document.

Nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the
future and no reliance, in whole or in part, should be placed on the fairness, accuracy, completeness and correctness

of the information contained herein or therein. Further, nothing in this document should be construed as constituting
legal, business, tax or financial advice. Certain information contained in this document, including in relation to EVR
and other companies, has not been independently verified or is derived from publicly available information. This
document also contains certain unaudited interim financial information. This information has been derived from
management accounts, is preliminary in nature and subject to change.

The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities.
In this document, "Glencore", "Glencore group" and "Group" are used for convenience only where references are
made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only
and do not imply any other relationship between the companies. Likewise, the words "we", "us" and "our" are also
used to refer collectively to members of the Group or to those who work for them. These expressions are also used
where no useful purpose is served by identifying the particular company or companies.

Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited

Date: 14-11-2023 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.