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Glencore PLC Audit Report / Information 2015

Dec 31, 2015

6185_rns_2015-12-31_4726a292-6e8a-42e6-a15c-b6d0db046d5e.pdf

Audit Report / Information

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Resources & Reserves as at 31 December 2015

Contents

Page number

About this report 2
Definitions 4
Metals and Minerals:
Copper 5
Zinc 16
Nickel 29
Ferroalloys 33
Iron ore 39
Energy Products:
Coal 43
Oil 62

About this report

We report our resources and reserves in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC), the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2014 edition) and the Petroleum Resources Management System (PRMS) for reporting oil and natural gas Reserves and Resources.

Overview

The resource and reserve data in the following tables are as at 31 December 2015, unless otherwise noted. For comparison purposes, data for 2014 has been included.

Metric units are used throughout.

All data is presented on a 100% asset basis, with the Glencore attributable percentage shown against each asset, with the exception of Oil assets which are shown on a working interest basis.

All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals.

The Measured and Indicated resources are reported inclusive of those resources modified to produce reserves, unless otherwise noted.

Commodity prices and exchange rates used to establish the economic viability of reserves are based on long-term forecasts applied at the time the reserve was estimated.

Where resources and reserves have not been updated, on the basis that the information has not materially changed since it was reported under JORC 2004, this information has not been updated to comply with the JORC code 2012. Reference is given in the report where this is the case.

Copper

Copper has adopted the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) as its standard for all public reports of exploration results, Mineral Resources and Ore Reserves.

The Mineral Resources and Ore Reserves Statement has been compiled in accordance with the JORC Code.

The Mineral Resources and Ore Reserves statements for Australia and Asia have been reviewed and the relevant data extracted and compiled by Jason Hosken, Glencore Copper.

The Mineral Resources and Ore Reserves statements for each African and South American operation and project have been reviewed, with the data being extracted and compiled by the respective competent person for each operation and project.

Zinc

The Zinc Mineral Resource and Ore Reserve Statement at 31 December 2015 has been compiled in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

The term 'Ore Reserves', as defined in Clause 28 of the JORC Code, has the same meaning as 'Mineral Reserves' as defined in The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves.

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Ignacio Seebold, Glencore Zinc (ICOG-EurGeol).

Nickel

The majority of the Mineral Resources and Mineral Reserves estimates are prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on 10 May 2014, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on 23 November 2003, and have been compiled using geo-statistical and/or classical methods, plus economic and mining parameters appropriate to each project.

The Mineral Resource and Ore Reserve estimates at Murrin Murrin in Australia have been prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Steve Kormos, Glencore Nickel.

Ferroalloys

South African chromite, vanadium and PGM's (platinum group metals) Mineral Resources and Ore Reserves in this report were prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

The Chromite, Vanadium and PGM's Mineral Resource and Ore Reserve Statement at 31 December 2015 is based on the Glencore Ferroalloys "Procedure for the Estimation of Mineral Resources and Ore Reserves".

About this report

Definitions of all the terms used in this report can be found in the relevant code.

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Pieter-Jan Gräbe, Glencore Ferroalloys (SACNASP).

Iron Ore

Iron ore Mineral Resources and Ore Reserves have been compiled in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), unless otherwise stated in the notes for a particular Mineral Resource and Ore Reserve.

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Nick Brett, Glencore Iron Ore.

Coal

Australian, Canadian and Colombian (Prodeco) Coal Resources and Reserves have been prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

South African and Colombian (Cerrejón) Coal Resources and Reserves have been prepared in accordance with the 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC).

The Coal Resource and Reserve Statements as at 31 December 2015 conform to the requirements of these Codes and are consistent with Glencore Coal's internal Coal Resource and Reserve Estimation and Reporting Standard.

Coal resources have been estimated for all coal seams that have reasonable prospects for eventual economic extraction by open cut or underground mining methods within mining leases or exploration licences. In general, Coal Resources are reported within a geoshell limited by the areal and depth extent of the drill holes; i.e. there is very little inclusion of Coal Resources extrapolated beyond the extent of the geological data.

Coal Resources are excluded from those areas where the seam has been extracted or sterilised by mining.

Coal Resources do not include out-of-seam dilution. Underground Coal Resources are typically reported on a full seam or working section basis, and therefore may contain thin stone bands within the seam. Coal Resources are reported on an in situ moisture basis.

All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals.

Coal Resource and Reserve totals are rounded to appropriate levels of accuracy in accordance with the 2012 JORC Code and the Glencore Coal rounding procedures. The following table summarises the data rounding assumptions for the 2015 report.

Classification Tonnage Range Rounding
Measured + < 10Mt 1 significant figure
Indicated
Resources		 10Mt - 30Mt 2 significant figures
/ 30Mt - 100Mt Nearest 5Mt
Proved + > 100Mt 2 significant figures
Probable
Reserves		 >1000Mt Nearest 50Mt
< 100Mt Nearest 10Mt
Inferred 100Mt - 400Mt Nearest 50Mt
> 400Mt Nearest 100Mt

Coal Reserves are rounded to the same assumptions as Measured and Indicated Coal Resources above. Individual tonnage assessments are added to show Group or Complex tonnages and geographical accumulations. These are not subjected to further rounding.

The Coal Resource and Reserve Competent Person statements have been reviewed and the relevant data extracted and compiled by Jeff Gerard, Glencore Coal.

Oil

Oil and natural gas Resources and Reserves have been prepared in accordance with the PRMS jointly published by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers, as amended.

The Equatorial Guinea Oil Reserves statement has been reviewed and the relevant data extracted and compiled by Gaffney, Cline & Associates (GCA).

The Chad Oil Reserves statement has been reviewed and the relevant data extracted and compiled by McDaniel & Associates (McDaniel).

The Oil Resources statements for Equatorial Guinea, Chad and Cameroon have been reviewed and the relevant data extracted and compiled by Glencore.

Competent/Qualified Persons

Resource and reserve estimates are based on information compiled by Competent Persons (as defined by the JORC, SAMREC Codes), Qualified Persons (as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves) and Adequately Qualified Persons (as defined by PRMS).

Each of the Competent/Qualified Persons has the appropriate professional membership and the relevant experience in relation to the resources and/or reserves being reported by them to qualify as a Competent or Qualified Person as defined in the relevant code or standard. Each has consented to the inclusion of their resource and reserve estimates in the form and context in which it appears in this report.

Definitions

Throughout this report, the following abbreviations and definitions have been used:

3PGE Three Platinum Group Elements (Platinum, Palladium and Rhodium)
AIG Australian Institute of Geoscientists
APEGBC Association of Professional Engineers and Geoscientists of BC
APEGGA Association of Professional Engineers Geologists and Geophysicists of Alberta
APEGNB Association of Professional Engineers and Geoscientists of New Brunswick
APEO Association of Professional Engineers of Ontario
APGO Association of Professional Geoscientists of Ontario
AusIMM Australasian Institute of Mining and Metallurgy
CIM Canadian Institute of Mining, Metallurgy and Petroleum
CV (kcal/kg) Calorific Value, kilo calories per kilogramme
DTC Davis Tube Concentrate
ECSA Engineering Council of South Africa
EL Exploration Licence
FPSO Floating production, storage and offloading
Geoshell A broad envelope limited by the depth and areal extent of geological data points (primarily drill holes)
GSL Geological Society of London
ICOG-EurGeol Ilustre Colegio Oficial de Geólogos – European Geologist
JORC Joint Ore Reserves Committee
kt Thousand tonnes
LOM Life of Mine
LOX Limit of Oxidation
LOZ Lower Oxidised Zone
OC Open cast or Open cut
OGQ Ordre des Géologues du Québec
OIQ Ordre des Ingénieurs du Québec
MR Mineral Resources
Mt Million tonnes
NSR Net Smelter Return
OR Ore Reserves
PLATO South African Council for Professional and Technical Surveyors
PRMS Petroleum Resources Management System
ROM Run of Mine
SACNASP The South African Council for Natural Scientific Professions
SAMREC South African Code for Reporting of Mineral Resources and Mineral Reserves
tpd Tonnes per day
UG Underground
UG2 Upper Group 2 Reef
VMS Volcanogenic Massive Sulphide

Marketable Coal Reserves (CIM/JORC) and Saleable Coal Reserves (SAMREC) are the tonnage and coal quality that will be available for sale, either in the raw ROM state at specific moisture content or after beneficiation of the ROM Coal Reserve has produced materials at specified qualities, moisture contents and size ranges.

Definitions of many of the terms used in this report can be found in the relevant codes.

African Copper Mineral Resources (Katanga, Mutanda, Mopani)

Attributable Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and Inferred
Name of
operation		 interest Mining
method		 Commodity 31.12.15 31.12.14 31.12.15 31.12.14 Indicated Resources 31.12.15 31.12.14 31.12.15 31.12.14 Mineral Resources Competent person
Katanga
Kamoto 56.4% UG (Mt) 9.5 26.8 72.9 32.9 82.4 59.7 49.2 11.0 CS
Copper (%) 3.91 4.48 3.84 4.78 3.85 4.65 4.44 5.00
Cobalt (%) 0.48 0.59 0.43 0.58 0.43 0.58 0.34 0.59
T17 (OC&UG) 56.4% (Mt) 4.2 4.2 9.4 9.4 13.6 13.6 5.2 5.2 CS
UG/OC Copper (%) 2.66 2.66 4.44 4.44 3.89 3.89 4.21 4.21
Cobalt (%) 0.51 0.51 0.65 0.65 0.61 0.61 0.98 0.98
Mashamba 56.4% OC (Mt) – – 26.2 75.0 26.2 75.0 37.2 65.3 CS
East Copper (%) – – 1.51 1.80 1.51 1.80 2.33 0.76
Cobalt (%) – – 0.71 0.38 0.71 0.38 0.53 0.10
KOV OC, 56.4% OC (Mt) – – 71.4 110.6 71.4 110.6 91.0 68.9 CS
KOV UG, Copper (%) – – 4.16 5.37 4.16 5.37 4.44 3.59
KTE Cobalt (%) – – 0.51 0.41 0.51 0.41 0.36 0.32
Kananga 56.4% (Mt) – – 4.1 4.1 4.1 4.1 4.0 4.0 CS
Copper (%) – – 1.61 1.61 1.61 1.61 2.00 2.00
Cobalt (%) – – 0.79 0.79 0.79 0.79 0.98 0.98
Tilwezembe 56.4% (Mt) – – 9.5 9.5 9.5 9.5 13.8 13.8 CS
Copper (%) – – 1.89 1.89 1.89 1.89 1.75 1.75
Cobalt (%) – – 0.60 0.60 0.60 0.60 0.60 0.60
Total Katanga (Mt) 14 31 194 242 207 273 200 168
Copper (%) 3.53 4.23 3.53 3.94 3.53 3.98 3.81 2.41
Cobalt (%) 0.49 0.58 0.52 0.45 0.52 0.46 0.43 0.31
Mutanda
Mutanda 69.0% OC (Mt) 193.7 177.5 168.1 122.1 361.8 299.6 162.4 149.8 CS
South Copper (%) 1.78 1.83 1.16 1.38 1.49 1.65 0.90 1.05
Cobalt (%) 0.70 0.62 0.43 0.57 0.57 0.60 0.29 0.42
Mutanda 69.0% OC Mt 48.1 48.1 29.1 29.1 77.2 77.2 58.9 58.9 CS
North Copper (%) 0.73 0.73 0.51 0.51 0.65 0.65 0.48 0.48
Cobalt (%) 0.34 0.34 0.14 0.14 0.26 0.26 0.08 0.08
Total Mutanda (Mt) 242 226 197 151 439 377 221 209
Copper (%) 1.57 1.60 1.06 1.21 1.34 1.45 0.79 0.89
Cobalt (%) 0.63 0.56 0.39 0.49 0.52 0.53 0.23 0.32
Mopani
Nkana 73.1% UG (Mt) 151.7 143.8 47.0 46.2 198.7 190.0 51.1 47.9 CS
Sulphides Copper (%) 2.10 2.08 2.00 1.87 2.08 2.03 1.97 1.86
Cobalt (%) 0.11 0.11 0.12 0.12 0.11 0.11 0.14 0.13
Nkana 73.1% UG/OC (Mt) 7.5 9.0 1.9 0.9 9.4 9.9 1.6 0.9 CS
Oxides Copper (%) 2.32 2.30 1.94 2.58 2.24 2.33 1.92 1.92
Cobalt (%) 0.03 0.03 0.05 0.01 0.03 0.03 0.04 0.01
Nkana 73.1% (Mt) – – 5.7 5.7 5.7 5.7 0.8 0.8 CS
Tailings Copper (%) – – 0.71 0.71 0.71 0.71 0.94 0.94
Dump Cobalt (%) – – 0.07 0.07 0.07 0.07 0.07 0.07
Mufulira 73.1% UG (Mt) 28.0 21.1 12.5 9.2 40.5 30.3 24.0 34.3 CS
Sulphides Copper (%) 2.46 2.49 2.75 2.55 2.55 2.51 2.46 2.46
Mufulira 73.1% UG (Mt) 8.8 7.0 2.0 1.5 10.7 8.5 1.3 0.9 CS
Oxides Copper (%) 1.19 1.35 0.90 1.08 1.14 1.31 0.82 1.11
Mufulira 73.1% (Mt) 3.0 3.0 1.8 1.8 4.9 4.9 1.3 1.3 CS
Surface Copper (%) 1.81 1.81 1.80 1.80 1.81 1.81 1.76 1.76
Total Mopani (Mt) 199 184 71 65 270 249 80 86
Copper (%) 2.11 2.11 1.99 1.85 2.08 2.04 2.08 2.08
Cobalt (%) 0.08 0.09 0.09 0.09 0.08 0.09 0.09 0.07

African Copper Ore Reserves (Katanga, Mutanda, Mopani)

Name of
operation		 Attributable
interest		 Mining
method		 Commodity Proved Ore Reserves
31.12.15		 31.12.14 Probable Ore Reserves
31.12.15		 31.12.14 31.12.15 31.12.14 Total Ore Reserves Competent
person
Katanga
Kamoto 56.4% UG Ore (Mt) 8.2 15.3 17.2 11.6 25.5 27.0 JL
Copper (%) 3.68 3.52 3.57 3.47 3.60 3.50
Cobalt (%) 0.37 0.56 0.52 0.53 0.47 0.54
T17 (OC & UG) 56.4% UG/OC Ore (Mt) 2.2 2.2 9.1 9.1 11.3 11.3 JL
Copper (%) 3.42 3.42 3.71 3.71 3.65 3.65
Cobalt (%) 0.54 0.54 0.64 0.64 0.62 0.62
Mashamba East 56.4% OC Ore (Mt) – – 5.8 5.9 5.8 5.9 JL
Copper (%) – – 2.68 3.00 2.68 3.00
Cobalt (%) – – 0.37 0.36 0.37 0.36
KOV OC, 56.4% OC Ore (Mt) – – 55.9 43.8 55.9 43.8 JL
KOV UG, KTE Copper (%) – – 4.23 4.56 4.23 4.56
Cobalt (%) – – 0.47 0.44 0.47 0.44
Total Katanga (Mt) 10 18 88 70 99 88
Copper (%) 3.62 3.51 3.94 4.14 3.91 4.01
Cobalt (%) 0.41 0.56 0.49 0.47 0.48 0.49
Mutanda
Mutanda South 69.0% OC Ore (Mt) 93.1 120.7 42.9 62.8 136.0 183.5 JL
Copper (%) 2.24 2.01 1.77 1.53 2.09 1.84
Cobalt (%) 0.84 0.68 0.69 0.67 0.79 0.68
Stockpiles 69.0% Ore (Mt) 20.8 17.5 – – 20.8 17.5 JL
Copper (%) 1.68 1.59 – – 1.68 1.59
Cobalt (%) 0.92 1.08 – – 0.92 1.08
Total Mutanda (Mt) 114 138 43 63 157 201
Copper (%) 2.14 1.96 1.77 1.53 2.04 1.82
Cobalt (%) 0.85 0.73 0.69 0.67 0.81 0.71
Mopani
Nkana Sulphides 73.1% UG Ore (Mt) 100.2 102.4 22.9 21.2 123.1 123.5 HT
Copper (%) 1.86 1.89 1.78 1.79 1.84 1.87
Cobalt (%) 0.09 0.09 0.09 0.09 0.09 0.09
Nkana Oxides 73.1% UG/OC Ore (Mt) – 5.1 – 5.7 – 10.8 HT
Copper (%) – 2.83 – 0.81 – 1.76
Cobalt (%) – 0.11 – 0.07 – 0.09
Mufulira Sulphides 73.1% UG Ore (Mt) 14.1 12.2 7.0 4.8 21.1 17.0 HT
Copper (%) 2.19 2.15 2.36 2.21 2.25 2.17
Mufulira Oxides 73.1% UG Ore (Mt) – 0.6 – 0.1 – 0.6 HT
Copper (%) – 1.05 – 1.01 – 1.04
Total Mopani (Mt) 114 120 30 32 144 152
Copper (%) 1.90 1.95 1.92 1.68 1.90 1.89
Cobalt (%) 0.08 0.08 0.07 0.07 0.08 0.08

Notes

Katanga: Remaining life of mine: expected to be in excess of 20 years. Expiry date of relevant permits: 7 May 2022 for the Kananga Extension and 3 April 2024 for all remaining permits (KTO and Mashamba East Open Pit, T-17 Open Pit, KOV Open Pit, Tilwezembe Open Pit, Kananga Mine), renewable in accordance with the DRC mining code for a period of 15 years.

Glencore owns 75.2% of Katanga Mining Limited ("KML"), which in turn owns 75% of Kamoto Copper Company SARL ("KCC"). KCC owns the material assets, including the mining and exploration rights related to the mining assets. La Generale des Carrieres et des Mines and La Société Immobilière du Congo, which are state-owned mining companies in the DRC, own the other 25% of KCC.

With the exception of Tilwezembe, primary mineralisation, in the form of sulphides, within the Lower Roan is associated with the Stratified Dolomite and Silicified Rocks for the Orebody Inferior and the Basal Schists and Upper Dolomitic Shales for the Orebody Superior and is thought to be sys-sedimentary in origin. Typical primary copper sulphide minerals are bornite, chalcopyrite, chalcocite and occasional native copper while cobalt is in the form of carrolite. The mineralisation occurs as disseminations or in association with hydrothermal carbonate alteration and silicification.

The mineralisation at Tilwezembe Mine is atypical being hosted by the Mwashya or R4 Formation. The mineralisation generally occurs as infilling of fissures and open fractures associated with the brecciation. The typical copper minerals are mainly chalcopyrite, malachite and pseudomalachite while cobalt is in the form of heterogenite, carrolite and spherocobaltite. Manganese minerals are psilomelane and manganite.

Mutanda: Remaining mine life: estimated in excess of 15 years. Expiry date of relevant mining permits: 26 May 2022 for Mutanda and 1 July 2022 for Kansuki. Both mining permits are renewable in accordance with the DRC mining code for periods of 15 years.

Mutanda North (Kansuki) consists of Kabwimia, Area 2 East, and Area 2 West. Mutanda South (Mutanda) consists of East (includes Area 1), Central (includes Central North West), and West.

Drilling undertaken in Mutanda South in 2015 provided an increased level of geological knowledge and confidence in the resource.

Mopani: Remaining life of mine: 29 years for Nkana and 14 years for Mufulira. Expiry date of relevant mining/ concession licences: 31 March 2025 for both of these mines.

Within the Nkana mining area there are four underground mines and a series of open pits. The open pits are under care and maintenance and have therefore been excluded from Ore Reserves and included under Mineral Resources. All are situated on the north-eastern limb of the Nkana Syncline area. Other cupriferous zones are present in the nose and southwest limb of the syncline. The orebodies are stratiform and are mainly confined to a recognisable ore formation, which occurs near the base of the Katangan sequence within the Lower Roan Group of the Mine Series. In the underground workings, the principal copper ore minerals are chalcopyrite and bornite with subordinate chalcocite. There is a zoning in the geographical distribution of these minerals. Cobalt occurs as carrollite and cobaltiferious pyrite. The principal ore minerals are malachite, pseudomalchite, chrysocolla, native copper, cuprite and libethenite. In the open pit, malachite and chrysocolla are the principal ore minerals in the zone of oxidation closer to the surface. In some places however, vermiculite, malachite pseudomalachite and accessory wad are more important. At deeper levels chalcopyrite, bornite and chalcocite are predominantly present.

In the Mufulira mining area, the Basement Complex topography appears to have exerted a significant structural control during deformation. The distribution of ore minerals in all three orebodies is stratigraphically controlled, occurring dominantly as disseminations, blebs and irregular masses. The principal copper minerals are chalcopyrite (60%), bornite (40%), and minor/trace chalcocite. Oxide minerals are confined to near surface occurrences, and supergene enrichment zones. Generally the deposit is structurally simple being characterised by three main folds that are in part overturned with a plunge and dip approximately 10º to the northeast. The basin is open and untested at depth.

  • CS = Christiano Santos Goncalves of Golder Associates Africa (Pty) Ltd, (MAusIMM CP (Geo)).
  • HT = Hugo Tukker of Golder Associates Africa (Pty) Ltd, (ECSA, PrEng).
  • JL = Jacobus Lotheringen of Ukwazi Mining Solutions (Pty) Ltd, for Golder Associates Africa (Pty) Ltd, (SAIMM, PrEng.).

Collahuasi Mineral Resources

Name of Attributable
Mining		 Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred
Mineral Resources Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Collahuasi 44% OC Sulphide (Mt) 757 681 4,261 4,136 5,019 4,818 4,851 5,030 LA
Copper (%) 0.82 0.82 0.82 0.82 0.82 0.82 0.80 0.80
Molybdenum (%) 0.020 0.019 0.023 0.022 0.023 0.022 0.017 0.020
Oxide & Mixed (Mt) 34 31 49 47 83 78 25 30 LA
Copper (%) 0.66 0.67 0.68 0.61 0.67 0.63 0.54 0.50
Total Collahuasi (Mt) 791 712 4,310 4,183 5,102 4,896 4,876 5,060
Copper (%) 0.81 0.81 0.82 0.82 0.82 0.82 0.80 0.80
Molybdenum (%) 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02

Collahuasi Ore Reserves

Name of
Attributable
Mining		 Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Collahuasi 44% OC Sulphide (Mt) 501 464 2,592 2,753 3,093 3,217 AP
Copper (%) 1.00 0.97 0.82 0.78 0.85 0.80
Molybdenum (%) 0.023 0.027 0.020 0.017 0.020 0.018
Oxide & Mixed (Mt) 15 18 15 20 30 38 AP
Copper (%) 0.63 0.67 0.73 0.73 0.68 0.70
Total Collahuasi (Mt) 516 482 2,607 2,773 3,123 3,255
Copper (%) 0.99 0.96 0.82 0.78 0.85 0.80
Molybdenum (%) 0.02 0.03 0.02 0.02 0.02 0.02

Notes

Collahuasi: The Collahuasi district is located in northern Chile, Tarapacá Region, and host large Copper-Molybdenum porphyry-type deposits: Ujina, Rosario, and peripheral vein deposits such as Rosario Oeste and Rosario Sur. Sulphides as chalcopyrite, bornite and less chalcosite are the main copper minerals at Ujina and Rosario. At Rosario Oeste, supergene chalcosite is the main copper mineral. Rosario Sur is a small oxide-bearing deposit, mainly chrysocolla. Collahuasi is mined by open cut methods. The Rosario orebody is the main source of mineral for current Collahuasi operation. Mineral Resources for Rosario, Ujina, Rosario Oeste and Rosario Sur have been classified into Measured, Indicated and Inferred categories based on minimum search radius constraints and drill hole spacing. Mineral Resources are reported within the constraints of optimised pit shells. Mineral Resources and Ore Reserves have been updated on the basis of new drilling information, updated geological-geostatistical models, mining parameters and adjustments to metal prices forecast. The 49Mt ore production for 2015 is already depleted from the reported Ore Reserves. Ore Reserves estimates are based only on Measured and Indicated Mineral Resources, optimised mine plans and meet minimum operational cutoff requirements. The Ore Reserves include all Proved and Probable Ore Reserves above the mill (operational) cut-off grade. Changes to the block model and an increase in mill cut-off grade have decreased the Ore Reserves by 83Mt. The process of generating the resource model and optimised pit shells incorporated diluting materials as such no additional dilution factors were required in converting Mineral Resources to Ore Reserves. Both Mineral Resources and Ore Reserves include estimates of stockpile material at time of reporting. Material included in stockpile is periodically verified and re-evaluated through drilling, trenching, and sampling. Stockpile material from Rosario and Ujina pits are classified according to the level of perceived uncertainty. These materials have been downgraded to Probable Ore Reserves. All sulphide stockpiles are considered Indicated Mineral Resources and are classified as Probable Ore Reserves.

Collahuasi has a life of mine of 70 years from 2016 to 2085, according to the most recent Life of Mine plan that supports the present Ore Reserves report.

  • LA = Luis Aedo, Employee of Compañía Minera Doña Inés de Collahuasi (AusIMM).
  • AP = Andrés Pérez, Employee of Compañía Minera Doña Inés de Collahuasi (AusIMM).

Antamina Mineral Resources

Name of Attributable
Mining
interest
method
Commodity		 Measured Mineral
Resources
31.12.15 31.12.14		 Indicated Mineral
Resources
31.12.15 31.12.14		 Measured and
Indicated Resources
31.12.15 31.12.14		 Inferred Mineral
Resources
31.12.15 31.12.14		 Competent
operation person
Antamina 33.75% OC Sulphide Cu (Mt) 173 188 506 514 679 702 780 770 LC
Copper (%) 0.89 0.88 0.88 0.89 0.88 0.89 0.83 0.80
Zinc (%) 0.14 0.14 0.14 0.16 0.14 0.15 0.14 0.10
Silver (g/t) 8.0 7.9 8.0 8.3 8.0 8.2 8.0 9.0
Molybdenum (%) 0.034 0.034 0.027 0.027 0.029 0.029 0.022 0.023
Sulphide Cu-Zn (Mt) 83 86 335 348 418 434 493 510 LC
Copper (%) 1.00 0.95 0.94 0.87 0.95 0.89 1.02 0.90
Zinc (%) 1.88 1.95 1.84 1.89 1.85 1.90 1.53 1.50
Silver (g/t) 16.0 16.0 15.0 14.3 15.2 14.6 16.0 15.0
Molybdenum (%) 0.011 0.012 0.009 0.009 0.009 0.010 0.008 0.008
Total Antamina (Mt) 256 274 841 862 1,097 1,136 1,273 1,280
Copper (%) 0.93 0.90 0.90 0.88 0.91 0.89 0.90 0.84
Zinc (%) 0.70 0.71 0.82 0.86 0.79 0.82 0.68 0.66
Silver (g/t) 10.6 10.4 10.8 10.7 10.7 10.6 11.1 11.4
Molybdenum (%) 0.027 0.027 0.020 0.020 0.021 0.022 0.017 0.017

Antamina Ore Reserves

Name of Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Antamina 33.75% OC Sulphide Cu (Mt) 128 145 207 231 335 376 LM
Copper (%) 1.02 1.00 0.99 0.97 1.00 0.98
Zinc (%) 0.14 0.15 0.17 0.18 0.16 0.17
Silver (g/t) 8.0 8.6 8.0 8.0 8.0 8.2
Molybdenum (%) 0.037 0.035 0.032 0.032 0.034 0.033
Sulphide Cu-Zn (Mt) 63 65 200 206 263 271 LM
Copper (%) 1.08 1.07 0.83 0.83 0.89 0.89
Zinc (%) 2.10 2.24 1.98 2.06 2.01 2.10
Silver (g/t) 17.0 17.1 13.0 13.1 14.0 14.1
Molybdenum (%) 0.009 0.010 0.008 0.008 0.008 0.008
Total Antamina (Mt) 191 210 407 437 598 647
Copper (%) 1.04 1.02 0.91 0.90 0.95 0.94
Zinc (%) 0.79 0.80 1.06 1.07 0.97 0.98
Silver (g/t) 11.0 11.2 10.5 10.4 10.6 10.7
Molybdenum (%) 0.028 0.027 0.020 0.021 0.023 0.023

Notes

Antamina: Antamina is a polymetallic (copper, zinc and molybdenum predominate) skarn deposit resulting from complex multiple intrusive events. Copper mineralization occurs mainly as chalcopyrite except for some areas of bornite, representing approximately 5% of the deposit. Zinc mineralization generally occurs as sphalerite. Other significant sulphide minerals include molybdenite and pyrite, while trace amounts of numerous silver and bismuth bearing minerals and local areas of galena (lead sulphide) are also found within the deposit.

The Mineral Resource classification is based on geologic risk factors (proportion of breccia indicator), geologic continuity (intrusive, endoskarn and exoskarn-waste) and drill hole spacing. The Antamina deposit is sufficiently well drilled to support the classification criteria.

Ore Reserves results were developed during the mine planning process in 2015, which is based on the end of year 2015 topography projection. The life-of-mine plan, and subsequent Ore Reserve estimation used for this statement considers only Measured and Indicated Mineral Resources; all Inferred Mineral Resources within this pit has been treated as waste. The cut-off grade for the Ore Reserves estimate varies by year in an effort to maximize the net present value of the life-of-mine. Ore Reserves are limited to the current operation tailings dam capacity.

The total Sulphide Ore Reserves (Cu and Cu-Zn) decreased 49Mt, primarily due to depletion during 2015.

Antamina has an approved life of mine plan of 13 years (2016-2028), based on Ore Reserves. Operating permits are valid until the end of the life of mine.

  • LC = Lucio Canchis, Employee of Compania Minera Antamina S.A. (AusIMM);
  • LM = Luis Mamani, Employee of Compañia Minera Antamina S.A. (AusIMM).
Name of Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Alumbrera 50%
Bajo de la Alumbrera OC Ore (Mt) 82 145 4 5 86 150 1 – FM
Copper (%) 0.31 0.33 0.25 0.25 0.31 0.33 0.23 –
Gold (g/t) 0.30 0.31 0.22 0.21 0.29 0.31 0.22 –
Molybdenum (%) 0.012 0.012 0.014 0.014 0.012 0.012 0.014 –
Bajo El Durazno OC (Mt) 57 7 44 30 101 37 59 104 FM
Copper (%) 0.15 0.17 0.15 0.15 0.15 0.15 0.14 0.14
Gold (g/t) 0.39 0.37 0.41 0.37 0.40 0.37 0.33 0.37
Lomas Bayas 100%
Lomas Bayas I OC Oxide & Mixed (Mt) 110 134 469 432 579 566 45 29 MR
Copper (%) 0.28 0.36 0.21 0.26 0.22 0.28 0.20 0.20
Soluble Copper (%) 0.17 0.19 0.19 0.13 0.13 0.15 0.10 0.10
Lomas Bayas II OC Oxide & Mixed (Mt) 198 221 359 325 557 546 49 25 MR
Copper (%) 0.30 0.30 0.23 0.24 0.26 0.26 0.10 0.10
Soluble Copper (%) 0.21 0.20 0.14 0.15 0.17 0.17 0.10 0.10
Lomas Bayas III OC Sulphide&Mixed (Mt) 17 17 431 431 448 448 443 433 MR
Copper (%) 0.54 0.54 0.36 0.36 0.37 0.37 0.30 0.30
Oxide & Mixed (Mt) 1 1 58 58 59 59 26 26
Copper (%) 0.23 0.23 0.22 0.22 0.22 0.22 0.20 0.20
Antapaccay 100% OC (Mt) 198 238 488 502 686 740 165 160 HB
Copper (%) 0.60 0.60 0.46 0.45 0.50 0.50 0.40 0.40
Gold (g/t) 0.13 0.13 0.09 0.09 0.10 0.10 0.10 0.10
Silver (g/t) 1.6 1.6 1.3 1.3 1.4 1.4 0.9 0.9
Molybdenum (%) 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.005
Coroccohuayco 100% OC (Mt) 9 9 247 240 256 249 80 80 HB
Copper (%) 0.71 0.71 1.02 1.02 1.01 1.01 1.20 1.20
Gold (g/t) 0.08 0.08 0.10 0.11 0.10 0.11 0.10 0.10
Silver (g/t) 2.1 2.1 3.2 3.2 3.1 3.2 4.7 4.8
Punitaqui 100% UG (Mt) 1.25 4.15 4.2 3.8 5.4 8.0 1.9 2.0 CM
Copper (%) 1.70 1.30 1.00 1.00 1.19 1.20 1.12 1.20
Silver (g/t) 5.9 5.8 1.8 2.0 2.8 4.0 1.1 1.0
Total Other South America (Mt) 673 776 2,104 2,027 2,777 2,803 870 859
Copper (%) 0.39 0.42 0.40 0.41 0.40 0.42 0.37 0.37
Gold (g/t) 0.11 0.10 0.04 0.04 0.06 0.06 0.05 0.07
Silver (g/t) 0.5 0.5 0.7 0.7 0.6 0.7 0.6 0.6

Other South America Mineral Resources (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)

Name of Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Alumbrera 50%
Bajo de la Alumbrera OC Ore (Mt) 25 145 1 5 26 150 FM
Copper (%) 0.39 0.33 0.27 0.25 0.39 0.33
Gold (g/t) 0.38 0.31 0.29 0.21 0.38 0.31
Molybdenum (%) 0.012 0.012 0.012 0.014 0.012 0.012
Bajo el Durazno OC Ore (Mt) 3 5 – 3 3 8 FM
Copper (%) 0.18 0.19 – 0.18 0.18 0.19
Gold (g/t) 0.36 0.41 – 0.36 0.36 0.39
Lomas Bayas 100%
Lomas Bayas I OC Oxide & Mixed (Mt) 82 73 151 115 233 188 MR
Copper (%) 0.28 0.32 0.21 0.25 0.23 0.28
Soluble Copper (%) 0.17 0.19 0.13 0.15 0.14 0.17
Lomas Bayas II OC Oxide & Mixed (Mt) 185 209 235 233 420 442 MR
Copper (%) 0.30 0.30 0.23 0.24 0.26 0.26
Soluble Copper (%) 0.21 0.21 0.15 0.15 0.18 0.18
Antapaccay 100% OC (Mt) 194 230 353 367 547 597 HB
Copper (%) 0.60 0.61 0.48 0.47 0.52 0.52
Gold (g/t) 0.13 0.14 0.10 0.10 0.11 0.12
Silver (g/t) 1.6 1.6 1.4 1.4 1.4 1.5
Punitaqui 100% UG Ore (Mt) 1.1 2.7 0.2 1.8 1.3 4.6 CM
Copper (%) 1.47 1.26 1.30 0.95 1.44 1.14
Silver (g/t) 5.0 6.0 5.5 2.6 5.0 4.6
Total Other South America (Mt) 490 665 740 725 1,230 1,390
Copper (%) 0.42 0.42 0.35 0.36 0.37 0.38
Gold (g/t) 0.07 0.12 0.05 0.05 0.06 0.09
Silver (g/t) 0.6 0.6 0.7 0.7 0.6 0.7

Other South America Ore Reserves (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)

Notes

Bajo de La Alumbrera and Bajo El Durazno:

The Bajo de la Alumbrera copper-gold porphyry deposit is located in the Hualfin district, Belen department of the Catamarca province, in the northwest region of Argentina. The orebody consists of primary sulphide mineralised ore which comprises disseminated, vein and fracture controlled chalcopyrite in altered dacite and andesite host rocks, with minor chalcocite and covellite in the enriched zone that surrounds the major faults.

The variations from the 31 December 2014 published statement are a result of the latest review of the geotechnical model, the final design of the pit slopes, updated new economic parameters, and depletion for milled tonnage.

The Ore Reserves and Mineral Resources figures are obtained using Ordinary Kriging interpolation within geological constraints from an assay database comprising some 116,000m of diamond drilling and 15,000m of reverse circulation drilling. Ore Reserves are based on a pit optimisation, and are reported using an economic 0.22% Cu equivalent cut-off grade. The strip ratio for the updated pit is 0.29 and defined as the in-pit tonnes of waste divided by the in-pit tonnes of ore. The life-of-mine is up to 2017.

The concession and permits of the operation/exploration are valid to the end of the life of the mine.

The Mineral Resources (Measured and Indicated) are 86Mt due to changes in metal prices and operational cost. In 2014 there were no Mineral Resources additional to the Ore Reserves statement.

The Bajo el Durazno deposit belongs to the mining district of Agua de Dionisio and is located 5km northeast of the Bajo de la Alumbrera deposit and 2km from Minera Alumbrera's concentrator plant. The deposit is located within the Farallón Negro volcanic complex, which is eroded, deformed by faults and mineralized, resulting in a "depressed geomorphological" with hydrothermal alteration known as "Bajo".

39,444m of diamond drilling was completed between 2009 and 2015. Ore Reserves and Mineral Resources figures are obtained using Ordinary Kriging interpolation for Cu and Au. The size of the block in the geological model (10x10x15) was based on geological criteria stemming from the geological interpretation and the proposed drilling grid.

The Mineral Resources were estimated using a cut-off 0.20g/t for Au. Ore Reserves are based on a pit optimization and are reported on an economic 0.30g/t Au equivalent cut-off grade.

The variations from the 31 December 2014 published statements are a result of incorporating data from an additional 17,800m of infill diamond drilling during the last campaign (2014) as well as mining during 2015.

Lomas Bayas (I) – Lomas Bayas (III): Lomas Bayas is a low grade Cu-Mo deposit resulting from the intrusion of several porphyry and breccia systems that were later exposed to leaching and subsequent supergene enrichment and in situ oxidation. Green copper oxides, copper sulphates in various forms and less partially mixed ores are the main source of ore for the existing SX/EW operation. The copper oxidessulphate mineralisation is the basis of the Lomas Bayas Ore Reserves (Lomas Bayas I).

Mineral Resources and Ore Reserves estimation has been completed using Ordinary Kriging on a block model that includes historic drill holes totalling 317,277m and sampled at 2m intervals. Ore Reserves are as of 31 December 2015 using projected topography; operational pit life-of-mine developed in 2015; cut-off grade Heap: 0.281% CuT and ROM: 0.06% CuT. Lomas Bayas (I) Ore Reserves increased by 45Mt due to a decrease in cut-off grade as a result of lower consumable costs such as fuel, power and reagents. The Lomas Bayas (III) Mineral Resources estimates sulphides in a pit shell calculated using Measured, Indicated and Inferred Mineral Resources; Oxides-Mixed within this pit are also considered Mineral Resources that will eventually feed the SX/EW operation.

The SX/EW operation plant has a current life of mine that extends to 2028; permits for the operation are valid to the end of the life of the mine.

Lomas Bayas (II): This low grade Cu deposit is located 2km south of Lomas I pit, in the same district and geological environment as Lomas Bayas deposit. The main difference is a larger presence of water soluble copper oxides and lower geotechnical rock quality. The Lomas II block model includes historic drill holes totalling 122,723m and sampled at 2m intervals. Mineral Resources and Ore Reserves estimation has been completed using Ordinary Kriging. Ore Reserves are as of 31 December 2015, considering: operational pit life-of-mine developed in 2015; cut-off grade Heap: 0.333% CuT and ROM: 0.07% CuT. Mineral Resources as of 31 December 2015 considers economic pit shell at similar cut-off grade.

The SX/EW operation plant has a current life of mine that extends to 2028; permits for the operation are valid to the end of the life of the mine.

Antapaccay: The Antapaccay orebody is located 10km southwest of Tintaya, and together with Coroccohuayco is part of the Tintaya mineralised district. It is a sulphide mineralised system comprising disseminated, vein and fracture controlled chalcopyrite and bornite in altered quartz–monzonite and diorite in a limestone host rock, with some mineralised exoskarn areas and minor copper oxides and copper carbonates in the upper part of the deposit.

Antapaccay Ore Reserves and Mineral Resources as at 31 December 2015. Mineral Resource categorisation is based on assessment of orebody and grade continuity, structural complexity, data quality, adequacy of data coverage, and reasonable prospects of economical extraction. The Mineral Resources estimation is based on a block model with grade interpolation by using Ordinary Kriging. Mineral Resources are stated at defined internal copper cut–off, which is maintained at 0.15% TCu. Ore Reserves are then derived from Measured and Indicated Mineral Resources after applying economical and technical modifying factors. Ore Reserves decreased by 50Mt as a result of depletion and changes to the block model.

The deposit geology model and Mineral Resources estimate has been updated in 2015 using a drill hole database that now includes over than 228,700m of total drilling data. The major variations from the previous published Mineral Resources statement are due to the inclusion of new infill drilling to the updated geological model and block grade interpolate.

The Ore Reserves are for 15 years ending in 2030. From 2015 the plant is considered Tintaya plus Antapaccay. Operation permits are valid until the end of the life of mine.

  • Coroccohuayco: The Coroccohuayco copper–gold skarn deposit is located 9km southeast of Tintaya. Together with Tintaya and Antapaccay this orebody is part of the Tintaya mineralised district. The main copper bearing minerals are bornite, chalcopyrite and chalcocite. The Coroccohuayco orebody is defined as a copper skarn deposit, which consists of Cretaceous sedimentary rocks of the Ferrobamba and Mara formation intruded by monzonitic plutons of the Eocene–Oligocene Andahuaylas–Yauri batholiths. The deposit geology model and Mineral Resources estimate has been updated at 31 December 2015. The major variations from the previous published Mineral Resources statement are due to the inclusion of new infill drilling to the updated geological model and block grade interpolate.
  • Punitaqui: Remaining life of mine reaches approximately 2 years based on Ore Reserves and 10 years based on Mineral Resources. Several epigenetic stratifiorm copper mineralisation (manto type) bodies with variable thicknesses between 20 to 40m are distributed along 900m strike length mineralised corridor named Cinabrio zone. Mineralisation is composed of crisocole, brochantita and malachite in upper oxide levels turning into a mixed zone composed of malachite, crisocole and chalcopyrite. Main sulphide zones are composed of pyrite, bornite and chalcopyrite. All mineralisation is distributed in calcareous shales also within minor pre-existing faults. Dalmacia deposit is located 7km south of the Punitaqui concentrator plant. Also described as a stratiform copper deposit the mineralisation occurs as irregular lenses of chalcopyrite, chalcocite and covellite sulphides within the porphyritic andestites of the reloj formation.

Competent persons

CM = Carlos Manchego, Employee of Glencore (AusIMM).

  • FM = Flavio Montini, Employee of Glencore (AusIMM).
  • HB = Heller Bernabé, Employee of Glencore (AusIMM).
  • MR = Mauricio Rubio, Employee of Glencore (AusIMM).

Australia Mineral Resources (Ernest Henry, Mount Isa, Cobar)

Name of Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Ernest Henry 100%
Underground UG (Mt) 16.1 16.8 71.0 59.0 87.1 75.8 9.0 8.3 CS
Copper (%) 1.29 1.37 1.15 1.23 1.17 1.26 1.1 1.1
Gold (g/t) 0.67 0.71 0.59 0.65 0.60 0.66 0.5 0.6
E1 OC (Mt) 4.6 4.6 5.5 5.5 10.1 10.1 0.4 0.4 CS
Copper (%) 0.70 0.70 0.75 0.75 0.73 0.73 0.9 0.9
Gold (g/t) 0.20 0.20 0.23 0.23 0.22 0.22 0.3 0.3
Monakoff OC (Mt) – – 2.4 2.4 2.4 2.4 0.1 0.1 CS
Copper (%) – – 0.95 0.95 0.95 0.95 0.8 0.8
Gold (g/t) – – 0.30 0.30 0.30 0.30 0.2 0.2
Mount Isa 100%
X41 Mine 500, 650, UG (Mt) 24.9 30.9 15.4 15.2 40.3 46.1 6.5 7.1 RO
1100 & 1900 Orebodies Copper (%) 1.93 1.88 1.83 1.80 1.90 1.85 1.7 1.6
Enterprise Mine 3000 UG (Mt) 21.9 28.0 3.4 2.6 25.2 30.7 0.5 0.4 HC
& 3500 Orebodies Copper (%) 2.90 2.92 2.75 2.62 2.88 2.89 2.7 2.3
Open Pit OC (Mt) 48 48 82 82 130 130 138 138 CD
Copper (%) 1.46 1.46 1.32 1.32 1.37 1.37 0.89 0.89
Cobar 100% UG (Mt) 3.0 2.9 2.5 2.7 5.6 5.7 6.4 6.7 JH
Copper (%) 5.96 6.23 5.42 5.19 5.71 5.73 5.6 5.8
Silver (g/t) 23.0 23.0 25.0 24.0 24.2 23.5 21 22
Total Australia (Mt) 119 131 182 169 301 301 161 161
Copper (%) 1.89 1.94 1.36 1.39 1.57 1.63 1.1 1.1
Gold (g/t) 0.10 0.10 0.24 0.24 0.18 0.18 0.03 0.03
Silver (g/t) 0.6 0.5 0.3 0.4 0.5 0.4 0.8 0.9

Australia Ore Reserves (Ernest Henry, Mount Isa, Cobar)

Name of Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
Ernest Henry 100%
Underground UG Ore (Mt) 10.9 11.0 47.0 53.3 57.9 64.3 AC
Copper (%) 1.17 1.14 1.03 1.00 1.06 1.03
Gold (g/t) 0.60 0.59 0.53 0.52 0.54 0.53
Mount Isa 100%
X41 Mine 500, 650, UG Ore (Mt) 8.0 6.1 7.5 12.6 15.5 18.7 GC
1100 & 1900 Orebodies Copper (%) 1.91 1.91 1.78 1.81 1.85 1.84
Enterprise Mine 3000 UG Ore (Mt) 12.3 14.5 1.8 0.9 14.1 15.4 GC
& 3500 Orebodies Copper (%) 2.64 2.90 2.51 2.57 2.62 2.88
Cobar 100% UG Ore (Mt) 3.2 3.1 2.6 2.3 5.8 5.4 DH
Copper (%) 4.43 4.30 4.04 3.63 4.25 4.02
Silver (g/t) 17.7 16.8 17.7 16.1 17.7 16.5
Total Australia (Mt) 34 35 59 69 93 104
Copper (%) 2.17 2.29 1.30 1.26 1.63 1.61
Gold (g/t) 0.19 0.19 0.42 0.40 0.34 0.33
Silver (g/t) 1.6 1.5 0.8 0.5 1.1 0.9

Notes

Ernest Henry Underground: The current expected mine life is 10 years (completion in 2025) with the Mining Lease tenements due to expire in 11 years (2026).

Copper and gold mineralisation occurs in a breccia comprised of strongly altered and replaced intermediate volcanic fragments in a matrix assemblage of predominantly magnetite, chalcopyrite and carbonate. Copper occurs as chalcopyrite and gold is strongly associated with chalcopyrite.

Net of mining depletion, sterilisation and additions from a reduction in cut-off grade, the updated Mineral Resource has had an overall increase of 12.0Mt since 31 December 2014.

Net of depletion for mining over the year, and changes in draw strategy and mine design, the Ore Reserve has decreased by 6.4Mt since 31 December 2014.

E1: Mining of the reserve was completed in early 2014. The expiry date of relevant tenements is 31 December 2032.

Economic mineralisation at E1 occurs as breccia-hosted mineralisation within the footwall volcanics at E1 North, and as strata-bound, replacement style mineralisation within the mineralised sedimentary units at E1 North, Central, South and East.

Monakoff: As per 2014, Monakoff and Monakoff East remain excluded from the Ore Reserves. The expiry date of relevant tenements is 31 October 2032.

Economic mineralisation at Monakoff and Monakoff East occurs in very-fine to medium grained steeply dipping metasediment units.

  • Mount Isa X41 Copper Mine: Mineralisation occurs generally as breccia hosted massive to disseminated chalcopyrite in "silica dolomite" altered pyritic dolomitic siltstone. Mining depletion, sterilisation and changes to mine design amounted to a 3.2Mt reduction in Ore Reserves.
  • Mount Isa Enterprise Copper Mine: Mineralisation occurs generally as breccia hosted massive to disseminated chalcopyrite in "silica dolomite" altered pyritic dolomitic siltstone. Mining depletion, sterilisation and mine design changes amounted to a 1.3Mt reduction in Ore Reserves. The reduction in the reserve grade results from improved long term design processes aligning with short term detailed design standards.

The underground life of mine estimate for the X41 and Enterprise Mines is 6 years (2021) with the tenements due to expire in 21 years (2036).

Mount Isa Open pit: The expiry date of relevant concession licences occurs in 2036.

Copper mineralisation occurs generally as breccia hosted massive to disseminated copper minerals in "silica dolomite" altered pyritic dolomitic siltstone. Approximately half of the Mineral Resources are defined by primary chalcopyrite, the remainder being oxidised or partially oxidised, with a minor amount of supergene chalcocite mineralisation. The 2015 Mineral Resources remain unchanged from 2014 and are reported inside an optimised pit shell using a cut-off grade of 0.5% Cu.

Cobar: The expected remaining life of mine is approximately 5 years based on Ore Reserves and approximately 10 years based on Mineral Resources, although Cobar has previously been able to extend its expected life of mine through exploratory drilling over the past 50 years. The expiry date of relevant mining/concession licences is 24 June 2028.

Economic mineralisation at Cobar occurs mostly as narrow lenses with short strike lengths that are depth extensive. Lenses consist of vein or semi massive to massive chalcopyrite hosted by sub-vertical quartz-chlorite shear zones within a siltstone unit. The Cobar Mineral Resource is reported within five 'systems': Western, Eastern, QTS North, QTS South and QTS Central.

The increase in Ore Reserve tonnage is primarily due to an increase in QTS North Measured and Indicated Mineral Resources. The increase in grade of the reserve is a result of revised dilution and recovery factors.

Competent persons

AC = Alexander Campbell, Glencore Copper (AusIMM).

  • CD = Chris De-Vitry, Quantitative Group (AusIMM).
  • CS = Colin Stelzer, Glencore Copper (AusIMM).
  • DH = Daniel Howard, Glencore Copper (AusIMM).
  • GC = Gibson Chitumbura, Glencore Copper (AusIMM).
  • HC = Helen Coackley, Glencore Copper (AusIMM).
  • JH = Jason Hosken, Glencore Copper (AusIMM).
  • RO = Rhonda O'Sullivan, Glencore Copper (AusIMM).

Other projects Mineral Resources

Name of
Attributable		 Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and Indicated
Mineral Resources		 Inferred Mineral
Resources		 Competent
operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 person
El Pachón 100% OC (Mt) 534 530 1,054 1,050 1,588 1,580 1,509 1,700 FM
Copper (%) 0.67 0.67 0.49 0.49 0.55 0.55 0.41 0.40
Silver (g/t) 2.4 2.4 2.1 2.0 2.2 2.1 1.8 2.0
Molybdenum (%) 0.013 0.013 0.011 0.011 0.012 0.012 0.009 0.010
West Wall 50% (Mt) – – 495 495 495 495 970 970 MMV
Copper Project Copper (%) – – 0.55 0.55 0.55 0.55 0.48 0.48
Gold (g/t) – – 0.05 0.05 0.05 0.05 0.05 0.05
Molybdenum (%) – – 0.009 0.009 0.009 0.009 0.008 0.008
Total Other projects (Mt) 534 530 1,549 1,545 2,083 2,075 2,479 2,670
Copper (%) 0.67 0.67 0.51 0.51 0.55 0.55 0.44 0.43
Gold (g/t) – – 0.02 0.02 0.01 0.01 0.02 0.02
Silver (g/t) 2.4 2.4 1.4 1.4 1.7 1.6 1.1 1.3
Molybdenum (%) 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Notes

  • El Pachón: Located in the southwest of San Juan Province of Argentina, the El Pachón orebody is a porphyry coppermolybdenum deposit in which two major stages of sulphide mineralisation contributed to the formation of the orebody. The bulk of the ore takes the form of disseminated Chalcopyrite-Molibdenite primary sulphides on top which an immature, relatively small copper enrichment blanket has been developed. In this upper part of the deposit Chalcocite and minor Covellite are partially replacing the primary Chalcopyirite ore. Mineral Resources stated herein are based on assay and geology information from 126,000m of mainly diamond drill holes. Mineral Resources have been classified using a combination of criteria including geological continuity and Kriging parameters. Mineral Resources are constrained by the use of an economic pit shell determined using Measured, Indicated and Inferred Mineral Resources and current assumption for the economic and technical modifying factors conditioning the resource pit.
  • West Wall: The West Wall Copper Project is located in central Chile's Valparaiso Region, 100km northeast of Santiago and 70km north of the Rio Blanco – Los Bronces mineral district. Glencore and Anglo American each have a 50% interest in the mining company West Wall SCM which holds the project. Porphyry copper style hydrothermal alteration covers a large area of approximately 7km by 3km. Exploration activities have focused in the south of the prospect at Lagunillas and West Wall North, where drilling has outlined copper sulphide Mineral Resources associated with porphyry intrusive bodies. Mineral Resources have been classified using a combination of criteria including geological continuity and Kriging parameters. Mineral Resources are constrained by the use of an economic pit shell, determined using Indicated and Inferred Mineral Resources and current assumption for the economic and technical modifying factors conditioning the limits of the resource pit.

Tampakan: Glencore sold its stake in the Tampakan Copper - Gold Project during 2015.

Competent Persons

FM = Flavio Montini, Employee of Glencore (AusIMM).

MMV = Manuel Machuca Valderrama, Employee of Anglo American for the West Wall Project (AusIMM).

Kazzinc Mineral Resources

Measured Mineral Indicated Mineral Measured and Inferred Mineral
Name of
operation		 Attributable
interest		 Mining
method		 Commodity Resources
31.12.15 31.12.14		 Resources
31.12.15 31.12.14		 Indicated Resources
31.12.15 31.12.14		 Resources
31.12.15 31.12.14		 Competent
person
Vasilkovskoye 69.7% OC (Mt) 61.5 85.6 22 28 83 113 7.6 11 AC
(Gold) Gold (g/t) 2.2 1.9 2.2 1.9 2.2 1.9 1.9 1.6
Komarovsky 69.7% OC (Mt) – – – 20 – 20 28 4.4 AC
(Gold) Gold (g/t) – – – 2.0 – 2.0 1.5 2.0
Total Gold Kazzinc (Mt) 61.5 85.6 22 48 83 133 36 15
Gold (g/t) 2.2 1.9 2.2 1.9 2.2 1.9 1.6 1.7
Maleevsky 69.7% OC (Mt) 6.58 8.6 5.0 5.6 12 14 6.2 6.4 AC
Zinc (%) 6.51 6.9 6.8 6.8 6.6 6.9 7 8
Lead (%) 1.04 1.1 1.2 1.2 1.1 1.1 2 2
Copper (%) 2.33 2.4 1.9 1.9 2.2 2.2 2 2
Silver (g/t) 79 77 71 71 75 75 75 60
Gold (g/t) 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.4
Ridder-Sokolny 69.7% UG (Mt) 17.3 17.8 14 15 31 33 6 6 AC
Zinc (%) 1.5 1.5 1.3 1.3 1.4 1.4 1 1
Lead (%) 0.7 0.7 0.5 0.5 0.6 0.6 0.5 0.5
Copper (%) 0.8 0.8 0.7 0.7 0.7 0.7 1 1
Silver (g/t) 24.3 23.7 27 26 26 25 22 22
Gold (g/t) 1.9 1.9 1.6 1.7 1.8 1.8 2 2
Tishinsky 69.7% UG (Mt) 2.94 5.2 3.6 2.8 6.6 8.1 1.7 0.8 AC
Zinc (%) 7.84 8.2 6.3 6.1 7.0 7.4 6 5
Lead (%) 1.76 1.8 1.2 1.2 1.5 1.6 0.5 1
Copper (%) 0.78 0.7 0.6 0.6 0.7 0.7 0.5 0.6
Silver (g/t) 11.6 14.3 10 10 11 13 7 7
Gold (g/t) 0.66 0.7 0.7 0.7 0.7 0.7 0.5 0.4
Shubinsky 69.7% UG (Mt) 0.85 1.8 0.36 0.91 1.2 2.7 0.2 1.0 AC
Zinc (%) 3.2 2.4 2.0 1.9 2.9 2.2 2 2
Lead (%) 0.5 0.4 0.3 0.4 0.4 0.4 0.4 0.5
Copper (%) 2.2 1.4 1.9 1.1 2.1 1.3 1 1
Silver (g/t) 24.8 17.6 21 14 24 16 17 10
Gold (g/t) 0.64 0.54 0.9 0.4 0.7 0.5 0.3 0.4
Staroye Tailings 69.7% (Mt) – – 2.4 2.4 2.4 2.4 1.4 1.4 AC
Dam Silver (g/t) – – 11 11 11 11 10 10
Gold (g/t) – – 1.0 1.0 1.0 1.0 0.8 0.8
Shaimerden 69.7% OC (Mt) – – 1.9 2.0 1.9 2.0 – – AC
Stockpiles Zinc (%) – – 22 22 22 22 – –
Dolinnoe 69.7% UG (Mt) – 0.71 2.4 1.1 2.4 1.8 4.4 1.2 AC
Zinc (%) – 4.13 2.4 2.7 2.4 3.3 1 2
Lead (%) – 2.06 1.2 1.4 1.2 1.7 1 1
Copper (%) – 0.59 0.3 0.4 0.3 0.5 0.3 0.3
Silver (g/t) – 164 67 130 67 140 76 80
Gold (g/t) – 11.0 6.3 8.1 6.3 9.2 6 6
Obruchevskoe 69.7% UG (Mt) – 2.66 4.1 1.4 4.1 4.1 2.9 1.1 AC
Zinc (%) – 11.1 10.5 7.1 10.5 9.7 3 4
Lead (%) – 4.87 4.8 2.3 4.8 4.0 1 1
Copper (%) – 1.16 1.0 1.2 1.0 1.2 0.6 0.9
Silver (g/t) – 81.2 62 43 62 68 48 100
Gold (g/t) – 2.2 1.8 0.7 1.8 1.7 0.7 0.9
Chashinskoye 69.7% OC (Mt) – – 58 58 58 58 30 30 AC
Tailings Dam Silver (g/t) – – 5.2 5.2 5.2 5.2 5 5
Gold (g/t) – – 0.7 0.7 0.7 0.7 0.5 0.5
Zhairemsky 69.7% (Mt) – – 23 – 23 – 1 28 AC
Zapadny Zinc (%) – – 4.3 – 4.3 – 4 4
Lead (%) – – 2.6 – 2.6 – 3 1
Silver (g/t) – – 28 – 28 – 33 –

Kazzinc Mineral Resources (continued)

Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources
Name of
operation		 Attributable
interest		 Mining
method		 Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Competent
person
Zhairemsky 69.7% OC (Mt) – – 34 – 34 – – 45 AC
Dalnezapadny Zinc (%) – – 4.9 – 4.9 – – 4
Lead (%) – – 1.4 – 1.4 – – 1
Silver (g/t) – – 6.7 – 6.7 – – –
Zhairemsky 69.7% OC (Mt) – – 3.5 – 3.5 – 0.2 – AC
Ushkatyn Zinc (%) – – 0.1 – 0.1 – 0.2 –
Lead (%) – – 7.1 – 7.1 – 8 –
Silver (g/t) – – 43 – 43 – 20 –
Novo- 35.5% OC (Mt) – – – – – – 40 40 AC
Leninogorskoye Zinc (%) – – – – – – 4 4
Lead (%) – – – – – – 1 1
Copper (%) – – – – – – 0.2 0.2
Silver (g/t) – – – – – – 33 33
Gold (g/t) – – – – – – 2 2
Total Polymetallic Kazzinc (Mt) 27.7 36.8 152 89 180 126 94 160
Zinc (%) 3.42 4.50 2.8 1.5 2.9 2.4 3 3
Lead (%) 0.89 1.26 1.1 0.3 1.1 0.5 0.7 0.8
Copper (%) 1.20 1.21 0.2 0.3 0.3 0.6 0.3 0.2
Silver (g/t) 36.0 41.4 17 15 20 23 28 14
Gold (g/t) 1.42 1.56 0.6 0.9 0.7 1.1 2 1

Kazzinc Ore Reserves

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Vasilkovskoye 69.7% OC Ore (Mt) 64.2 70.7 23 23 87 94 AC
(Gold) Gold (g/t) 2.0 2.20 2.0 2.2 2.0 2.2
Maleevsky 69.7% UG Ore (Mt) 5.0 7.1 5.0 5.1 10 12 AC
Zinc (%) 5.0 5.4 5.3 5.2 5.2 5.3
Lead (%) 0.8 0.8 0.9 0.9 0.8 0.8
Copper (%) 1.7 1.8 1.5 1.5 1.6 1.7
Silver (g/t) 57.2 58.6 51 51 54 55
Gold (g/t) 0.5 0.5 0.4 0.4 0.4 0.4
Ridder-Sokolny 69.7% UG Ore (Mt) 8.6 9.4 6.7 7.7 15 17 AC
Zinc (%) 1.2 1.2 1.0 1.0 1.1 1.1
Lead (%) 0.6 0.5 0.4 0.5 0.5 0.5
Copper (%) 0.5 0.6 0.6 0.6 0.6 0.6
Silver (g/t) 19.7 19.7 20 21 20 20
Gold (g/t) 1.6 1.7 1.3 1.4 1.5 1.6
Tishinsky 69.7% UG Ore (Mt) 0.61 1.6 1.8 2.7 2.4 4.3 AC
Zinc (%) 6.99 6.9 6.2 6.8 6.4 6.9
Lead (%) 1.86 1.5 1.3 1.5 1.4 1.5
Copper (%) 0.66 0.6 0.6 0.6 0.6 0.6
Silver (g/t) 10.2 9.7 11 16 11 14
Gold (g/t) 0.48 0.6 0.8 0.9 0.7 0.8
Shubinsky 69.7% UG Ore (Mt) 0.22 – 0.07 – 0.3 –
Zinc (%) 3.5 – 3.5 – 3.5 –
Lead (%) 0.5 – 0.4 – 0.5 –
Copper (%) 2.0 – 1.9 – 2.0 –
Silver (g/t) 23 – 20 – 22 –
Gold (g/t) 0.4 – 0.3 – 0.4 –
Shaimerden 69.7% OC Ore (Mt) – – 1.8 1.9 1.8 1.9 AC
Stockpiles Zinc (%) – – 22 22 22 22
Total Polymetallic Kazzinc (Mt) 14.4 18.1 15 17 30 36
Zinc (%) 2.80 3.35 5.5 5.4 4.2 4.4
Lead (%) 0.72 0.71 0.6 0.7 0.7 0.7
Copper (%) 0.95 1.07 0.8 0.8 0.9 0.9
Silver (g/t) 32.3 34.1 27 26 29 30
Gold (g/t) 1.15 1.12 0.8 0.9 1.0 1.0

Notes

Remaining mine life: different for each mine, ranging from 5 to 20 years. Expiry date of relevant mining/concession licences: different for each mine, ranging from April 2016 to November 2030. There is a routine licence extension procedure in Kazakhstan which Kazzinc undertakes as required.

Vasilkovskoye: It is a gold deposit of epigenetic (stockwork) type and beresite subtype of deposits hosting ores of goldquartz formation.

Ore reconciliation processes led to the re-interpretation of the controlling structures and associated ore domains, therefore also changing ore distribution patterns and related Mineral Resource categorisation.

The Mineral Resource numbers reported are based on the new ore model, as constrained in the existing pit shell.

Ore Reserves were estimated based upon updated Mineral Resource interpretation and interpolation parameters, as well as pit design.

The mined material from Vasilkovskoye during 2015 was 8.2Mt at 2.0g/t Au.

Komarovsky: It is a low-sulphide quartz (mesothermal) gold deposit located along the eastern exocontact of the Komarovskoye intrusion of granites and granodiorites. Primary mineralisation occurs within the north-south striking Komarovskoye fault zone and consists of steeply dipping quartz-carbonate-micaceous metasomatites hosted by schists. The overall strike length of Komarovsky is approximately 6,800m with individual mineralised zones generally 500-600m in length, 4-6m in width and up to 200m in depth.

Increase of the overall Mineral Resource is due to an updated interpretation of the ore zone, combined with new interpolation parameters.

The proposed method of mineral processing of the sulphide material is still under investigation, which is why the Mineral Resource was downgraded to Inferred.

Maleevsky: It is a typical syngenetic VMS deposit hosting ores of sulphide-polymetallic formation (with associated gold and silver).

There are no material changes to the primary parameters used in the calculation of the 2015 Ore Reserve from the 2014 Ore Reserve estimate. Mineral Resource changes are the result of mining drawdown and continued exploration drilling during 2015.

The mined material from Maleevsky during 2015 was 2.2Mt at 5.7% Zn, 0.8% Pb, 1.9% Cu, 55g/t Ag and 0.6g/t Au.

Ridder-Sokolny: The gold-polymetallic deposit is also VMS type of syngenetic deposits hosting ores of gold bearing sulphide-polymetallic formation.

Mineral Resource changes are due to mining exploitation during 2015.

For Ridder-Sokolny, Mineral Resources and Ore Reserves are reported as totals for Polymetallic and Cu-type mineralisation combined.

The mined material from Ridder-Sokolny during 2015 was 1.6Mt at 1.9% Zn, 0.2% Pb, 0.6% Cu, 8g/t Ag and 1.9g/t Au.

Tishinsky: It is a syngenetic VMS deposit of Au- and Agbearing sulfide polymetallic ores.

Tishinsky Mineral Resources are different from previous estimates, due to several factors, including reinterpretation of geological wireframes, sterilisation of resources, and ongoing exploration.

The Ore Reserve estimate of 2.4Mt shows a reduction of 1.9Mt from the 2014 estimate, due to 1.2Mt of mining and 700Kt of sterilised material located around old and unstable mine workings.

The mined material from Tishinsky during 2015 was 1.2Mt at 4.6% Zn, 0.9% Pb, 0.4% Cu, 10g/t Ag and 0.7g/t Au.

Shubinsky: The polymetallic deposit is a syngenetic VMS deposit hosting ores of sulphide-polymetallic formation (with associated gold and silver).

A new geological interpretation combined with new interpolation parameters generated much higher Cu grade than the previous model and enabled an economically viable core of tonnes, which now constitute the Ore Reserve. The resource cut-off was increased, in order to satisfy the "economical potential" requirements linked to a "Reserve–encompassing Resource".

The new model was tested through mining during 2015. A total of 150Kt, 2.5% Zn, 0.5% Pb, 1.4% Cu, 21 g/t Ag and 0.6 g/t Au was extracted.

  • Shaimerden: The Shaimerden stockpile is composed of highgrade, crushed zinc oxide ore which is not amenable to the concentration process; it is directly sent to the Ridder Zinc refinery. Throughout 2015, 151Kt at 20.6% Zn was processed.
  • Dolinnoe and Obruchevskoe: The Dolinnoe and Obruchevskoe deposits are situated in the centre and deepest south-eastern portions respectively of the Ridder mining district in the Rudnyi Altay geotectonic block. Gold is the main mineral of economic interest at Dolinnoe; veinletdisseminated polymetallic mineralisation predominates at Obruchevskoe.

Changes to the Mineral Resource tonnages and grade are due to a reinterpretation of the ore domains and interpolation parameters.

A feasibility study, regarding the mining of both deposits is underway.

Zhairemsky: The various iron, manganese, barite and polymetallic deposits of the Zhairemsky area, central Kazakhstan were discovered by geological and geophysical prospecting between the 1930s and 1960s. Between 1978 and 1995, some 22 million tonnes of low-grade zinc-lead ore including barite-dominated mineralisation were mined. As of 1996, focus was set on manganese and iron ore production. The Zhairemsky deposits were recently acquired by Kazzinc on the basis of their polymetallic value.

Confirmation drilling performed this year, enabled us to upgrade the Inferred to Indicated Mineral Resources, and generate individual pit shells, which constrain the resources. Shells were generated on benchmark costs, as well as using historical metallurgical recoveries, which will be confirmed by the on-going Feasibility study.

Novo-Leninogorskoye: The Novo-Leninogorskoye deposit is part of the Ridder-Sokolny group of VMS polymetallic deposits. Novo-Leninogorskoye was discovered in 1981 and was explored between 1981 and 1985. Two styles of mineralisation can be found at Novo-Leninogorskoye, barite-polymetallic and polymetallic with the mineralisation hosted by siltstones and quartzites.

All Mineral Resources estimated at Novo-Leninogorskoye have been classified as Inferred due to a current lack of support for the sample data.

Competent person

AC = Aline Côté, Project Manager, Glencore Zinc, (OGQ).

Australia Mineral Resources (Mount Isa, McArthur River)

Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Mount Isa 100%
Black Star OC (Mt) 10.7 12.6 2.0 2.2 13 15 0.8 1.5 BY
Open Cut Zinc (%) 5.41 5.30 3.6 3.4 5.1 5.0 5 6
Lead (%) 4.26 4.04 2.7 2.6 4.0 3.8 4 3
Silver (g/t) 72.8 66.0 46 45 68 63 70 60
Mount Isa Open Pit OC (Mt) 45.3 46.1 191 200 236 246 120 130 BY
Excl. Black Star Zinc (%) 4.13 4.09 3.6 3.4 3.7 3.6 3 3
Lead (%) 3.95 3.94 2.7 2.7 2.9 2.9 2 2
Silver (g/t) 80.9 80.7 57 56 62 61 50 50
George Fisher 100%
South (P49) Orebodies UG (Mt) 34.2 25.6 26 21 60 46 17 23 JL
Zinc (%) 7.87 7.86 7.6 7.8 7.8 7.8 7 7
Lead (%) 5.30 5.15 4.7 4.7 5.0 4.9 5 5
Silver (g/t) 106 105 92 93 100 100 90 90
North (L72) Orebodies UG (Mt) 43.2 39.8 103 98 147 138 68 98 JL
Zinc (%) 8.17 8.41 7.2 7.6 7.5 7.8 7 7
Lead (%) 3.53 3.58 2.9 3.0 3.1 3.1 3 3
Silver (g/t) 59.7 60.6 47 48 51 52 50 50
Handlebar Hill OC (Mt) 1.60 1.60 3.6 3.6 5.2 5.2 0.8 0.8 BY
Open Cut (primary) Zinc (%) 7.77 7.77 6.1 6.1 6.6 6.6 5 5
Lead (%) 2.56 2.56 2.0 2.0 2.2 2.2 2 2
Silver (g/t) 40.6 40.6 35 35 37 37 30 30
Handlebar Hill OC (Mt) 0.49 0.49 0.1 0.1 0.6 0.6 – – BY
Open Cut (oxide) Zinc (%) 0.37 0.37 0.4 0.4 0.4 0.4 – –
Lead (%) 8.52 8.52 4.1 4.1 7.8 7.8 – –
Silver (g/t) 88.8 88.8 65 65 85 85 – –
Lady Loretta 100% UG (Mt) 5.28 6.88 3.9 4.3 9.2 11 0.3 1.0 NS
Zinc (%) 16.3 16.0 14 14 15 15 11 14
Lead (%) 6.40 5.96 4.6 3.8 5.6 5.1 5 5
Silver (g/t) 104 92.7 86 74 96 85 90 80
Total Mount Isa (Mt) 141 133 330 330 470 460 210 250
Zinc (%) 6.86 6.87 5.2 5.1 5.7 5.6 5 5
Lead (%) 4.26 4.18 2.9 2.9 3.3 3.3 3 3
Silver (g/t) 80.3 78.1 57 56 64 62 50 50
McArthur River 100%
Open Cut OC (Mt) 118 126 52 53 170 179 – – KM
Zinc (%) 10.2 10.0 8.7 8.6 9.7 9.6 – –
Lead (%) 4.81 4.45 4.2 3.8 4.6 4.3 – –
Silver (g/t) 48.6 44.6 44 39 47 43 – –
Woyzbun South Zone UG (Mt) – – 8.3 8.3 8.3 8.3 – – KM
Zinc (%) – – 14 14 14 14 – –
Lead (%) – – 5.6 5.6 5.6 5.6 – –
Silver (g/t) – – 58 58 58 58 – –
Total McArthur River (Mt) 118 126 60 61 180 190 – –
Zinc (%) 10.2 10.0 9.4 9.3 9.9 9.8 – –
Lead (%) 4.81 4.45 4.4 4.0 4.7 4.3 – –
Silver (g/t) 48.6 44.6 46 42 48 44 – –

Australia Ore Reserves (Mount Isa, McArthur River)

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Mount Isa 100%
Black Star Open Cut OC Ore (Mt) 2.91 4.77 0.10 0.20 3.0 5.0 BY
Zinc (%) 5.59 5.31 6.8 3.3 5.6 5.2
Lead (%) 2.87 2.81 2.5 2.4 2.9 2.8
Silver (g/t) 50.8 38.0 44 26 51 37
George Fisher 100%
South (P49) Orebodies UG Ore (Mt) 7.31 8.90 9.0 5.7 16 15 JG
Zinc (%) 6.23 5.72 6.3 5.9 6.3 5.8
Lead (%) 4.99 4.60 4.8 4.5 4.9 4.6
Silver (g/t) 98.2 93.8 93 90 95 92
North (L72) Orebodies UG Ore (Mt) 14.6 19.8 35 35 49 55 JG
Zinc (%) 7.87 7.19 6.9 6.8 7.2 6.9
Lead (%) 3.92 3.48 3.4 3.2 3.6 3.3
Silver (g/t) 66.1 59.0 56 53 59 55
Handlebar Hill Open Cut OC Ore (Mt) 0.49 0.49 – – 0.49 0.49 BY
(oxide) Zinc (%) 0.37 0.37 – – 0.37 0.37
Lead (%) 8.52 8.52 – – 8.52 8.52
Silver (g/t) 88.8 88.8 – – 88.8 88.8
Lady Loretta 100% UG Ore (Mt) 5.18 6.79 3.3 4.2 8.5 11 JN
Zinc (%) 14.5 13.1 11 13 13 13
Lead (%) 5.90 5.01 3.8 3.2 5.1 4.3
Silver (g/t) 97.0 77.0 70 61 87 71
Total Mount Isa (Mt) 30.5 40.8 47 45 78 86
Zinc (%) 8.27 7.55 7.1 7.2 7.5 7.4
Lead (%) 4.49 3.96 3.7 3.4 4.0 3.6
Silver (g/t) 77.9 67.5 64 58 69 63
McArthur River 100% OC (Mt) 49.4 54.6 53 49 102 103 DH
Zinc (%) 12.1 11.8 8.3 8.4 10 10
Lead (%) 5.66 5.39 4.0 3.9 4.8 4.7
Silver (g/t) 57.5 54.1 41 38 49 47

Notes

Mount Isa

Black Star Open Cut: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.

The Black Star Open Cut resource is additional to the Mount Isa Open Pit resource.

The resource mineralisation occurs inside a designed Stage 7 pit, of which Stage 5 sits wholly within, based on a pit optimisation utilising Measured and Indicated Resource blocks.

Mining is currently active within the Stage 5 pit which encompasses the remaining portion of the Reserve.

A total of 3.2Mt at 4.8% Zn, 2.3% Pb and 55g/t Ag were depleted from the Ore Reserves in the 12 months to 31 December 2015 due to ongoing mining operations.

The Black Star Open Cut is located on Mining Lease ML8058 which expires on 30 November 2036. The current LOM plan predicts the Ore Reserves to expire in Q3, 2016.

Isa Open Pit: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.

Approximately 85% of the lead-zinc-silver resource is primary sulphide; the remainder being considered as transitional (mixed primary sulphide and secondary oxide/carbonate) mineralisation.

The Black Star Open Cut resource has been removed from the Isa Open Pit and is reported separately.

Pit optimisation was conducted using Measured, Indicated and Inferred Mineral Resources, and a pit shell was generated to constrain the Mineral Resource.

The copper resource inside the Isa Open Pit has not been included here; it is reported separately in the Copper section of this report. The Isa Open Pit is located on Mining Lease ML8058 which expires on 30 November 2036.

George Fisher Mine

North (L72) & South (P49) Orebodies: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.

Orebody and structural interpretation, modelling and classification of the Mineral Resource was completed on the basis of additional geological information and improved systems.

Changes to the Mineral Resources are due to geological modelling and the addition of new drilling information.

Mine production for the period January 2015 to December 2015 totalled 3.8Mt at 6.9% Zn, 3.0% Pb and 56g/t Ag.

Mining activities are temporarily progressing at a reduced rate versus the previous mine plan, as announced by Glencore in October 2015.

The mine plan results in a mine life to 2029. The mine is located on Mining Lease ML8058 which expires on 30 November 2036.

Handlebar Hill Open Cut: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.

The Handlebar Hill Open Cut resource is up dip of and additional to the George Fisher South resource.

Material from the oxidised portion of the mineralisation has been reported as a Mineral Resource and Ore Reserve following confirmation of an achievable treatment path.

No depletion has occurred through mining during 2015.

The Handlebar Hill Open Cut is located on Mining Lease ML8058 which expires on 30 November 2036. The mine was placed in care and maintenance in July 2014.

Lady Loretta

Lead-zinc-silver mineralisation occurs in a galena and sphalerite rich massive sulphide lens located in carbonaceous pyritic shales and siltstones. The deposit consists of a tight syncline dislocated by a number of major faults. The deeper and high grade portion of the deposit reaches 500m below the surface.

Diamond drilling continued through 2015 in both grade control and resource classification. In total, 44 grade control holes, 57 resource holes and 4 geotechnical holes were drilled for a total of 13,000m. Drilling data has resulted in a reduction of the Mineral Resource.

Mine production totalling 1.2Mt at 15.5% Zn, 5.1% Pb and 80g/t Ag respectively were depleted from the Ore Reserves and Mineral Resources for the period January 2015 to December 2015.

The mine was placed on care and maintenance during the last quarter of 2015 with a view to restarting in the appropriate economic conditions.

The LOM plan for Lady Loretta based on current Ore Reserves extends until 2021. The Mining Lease (ML5568) is current until 31 January 2026.

McArthur River Mine

Zinc-lead-silver mineralisation occurs predominantly as ultra-fine bedded parallel sphalerite and galena rich bands hosted by dolomitic and carbonaceous pyritic siltstones, graded beds and chaotic debris flow breccias.

Mineral Resources and Ore Reserves are based on the approved mine plan.

All relevant Modifying Factors for the conversion of Mineral Resources to Ore Reserves have been considered, with confidence levels in these factors reflected in the classification categories. There are no known issues that could materially affect the estimates.

The Ore Reserves and Mineral Resources have been depleted by a total of 4.5Mt at 9.4% Zn and 3.6% Pb that were crushed during 2015. Changes beyond depletion were due to a resource model update and revised cut-off calculations.

Mining activities are temporarily progressing at a reduced rate versus the previous mine plan, as announced by Glencore in October 2015.

Mineral Resources and Ore Reserves are located within leases that are valid to 2043, with the current mine plan ending in 2034.

  • BY = Ben Young, Mine Operations Manager, Glencore Zinc, (AusIMM).
  • DH = Drew Herbert, Mining Consultant, The Minserve Group Pty Ltd, (AusIMM).
  • JG = Johannes Grobler, Long Term Planning Superintendent, Glencore Zinc, (AusIMM).
  • JN = Joshua Northfield, Long Term Planning Engineer, Glencore Zinc (AusIMM).
  • JL = Johannes Lambrechts, George Fisher Mine Senior Geologist, Glencore Zinc, (AIG).
  • KM = Kristian Masterman, Senior Mine Geologist, Glencore Zinc, (AusIMM).
  • NS = Nicholas Spanswick, Senior Mine Geologist, Glencore Zinc, (AIG).

North America Mineral Resources (Kidd Creek, Matagami, PD1, Errington, Vermilion, Hackett River, Bell, Granisle)

Resources
Resources
Indicated Resources
Resources
Attributable
Mining
Competent
Name of operation
interest
method
Commodity
31.12.15 31.12.14
31.12.15 31.12.14
31.12.15 31.12.14
31.12.15 31.12.14
Person
Kidd Creek
100%
UG
(Mt)
BD
13.4
15.4
1.1
0.83
15
16
3.4
3.4
Zinc (%)
4.50
4.50
6.1
5.8
4.6
4.6
7
7
Copper (%)
2.01
2.07
1.6
1.4
2.0
2.0
2
2
Silver (g/t)
52
52
44
36
51
51
60
60
Matagami
100%
Bracemac-McLeod
UG
(Mt)
2.38
2.03
4.1
4.4
6.5
6.4
0.16
0.10
JD/ GR*
Zinc (%)
5.55
6.95
7.3
7.3
6.7
7.2
7
17
Copper (%)
1.28
1.23
1.2
1.3
1.2
1.3
2
2
Silver (g/t)
17.4
25.6
30
30
25
28
20
30
Gold (g/t)
0.35
0.41
0.8
0.7
0.6
0.6
0.6
0.5
PD-1
100%
OC/UG
(Mt)
0.55
0.55
1.0
1.0
1.6
1.6
–
–
GR
Zinc (%)
4.22
4.22
5.0
5.0
4.7
4.7
–
–
Copper (%)
0.82
0.82
1.3
1.3
1.1
1.1
–
–
Silver (g/t)
19.7
19.7
20
20
20
20
–
–
Gold (g/t)
0.13
0.13
–
–
–
–
–
–
Errington
100%
UG
(Mt)
6.70
6.70
2.3
2.3
9.0
9.0
–
–
AC
Zinc (%)
3.94
3.94
4.3
4.3
4.0
4.0
–
–
Lead (%)
1.10
1.10
1.3
1.3
1.2
1.2
–
–
Copper (%)
1.15
1.15
1.1
1.1
1.1
1.1
–
–
Silver (g/t)
52.0
52.0
55
55
53
53
–
–
Gold (g/t)
0.84
0.84
0.8
0.8
0.8
0.8
–
–
Vermilion
100%
UG
(Mt)
2.80
2.80
0.4
0.4
3.2
3.2
–
–
AC
Zinc (%)
4.22
4.22
5.3
5.3
4.4
4.4
–
–
Lead (%)
1.16
1.16
1.3
1.3
1.2
1.2
–
–
Copper (%)
1.34
1.34
1.1
1.1
1.3
1.3
–
–
Silver (g/t)
52.6
52.6
56
56
53
53
–
–
Gold (g/t)
0.91
0.91
1.1
1.1
0.9
0.9
–
–
Hackett River
100%
OC/UG
(Mt)
–
–
27
27
27
27
60
60
AC
Zinc (%)
–
–
4.5
4.5
4.5
4.5
3.5
3.5
Lead (%)
–
–
0.6
0.6
0.6
0.6
0.5
0.5
Copper (%)
–
–
0.5
0.5
0.5
0.5
0.4
0.4
Silver (g/t)
–
–
130
130
130
130
150
150
Gold (g/t)
–
–
0.3
0.3
0.3
0.3
0.2
0.2
Total Zinc North America
(Mt)
25.8
27.5
36
36
62
63
60
60
Zinc (%)
4.42
4.51
4.9
4.9
4.7
4.7
4
4
Lead (%)
0.41
0.39
0.5
0.5
0.5
0.5
0.5
0.5
Copper (%)
1.62
1.68
0.7
0.7
1.1
1.1
0.5
0.5
Silver (g/t)
48.2
49.5
107
107
83
82
140
140
Gold (g/t)
0.35
0.33
0.4
0.4
0.4
0.4
0.2
0.2
Bell
100%
OC
(Mt)
57.0
57.0
200
200
257
257
100
100
BD
Copper (%)
0.41
0.41
0.4
0.4
0.4
0.4
0.4
0.4
Gold (g/t)
0.18
0.18
0.2
0.2
0.2
0.2
0.1
0.1
Granisle
100%
OC
(Mt)
18.0
18.0
55
55
73
73
20
20
BD
Copper (%)
0.34
0.34
0.3
0.3
0.3
0.3
0.3
0.3
Gold (g/t)
0.11
0.11
0.1
0.1
0.1
0.1
0.1
0.1
Total Copper North America
(Mt)
75.0
75.0
255
255
330
330
120
120
Copper (%)
0.39
0.39
0.4
0.4
0.4
0.4
0.4
0.4
Gold (g/t)
0.16
0.16
0.2
0.2
0.2
0.2
0.1
0.1		 Measured Mineral Indicated Mineral Measured and Inferred Mineral

North America Ore Reserves (Kidd Creek, Matagami)

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Kidd Creek 100% UG Ore (Mt) 6.99 7.58 3.3 4.0 10 12 AM
Zinc (%) 4.06 4.24 4.7 4.5 4.3 4.3
Copper (%) 2.02 2.07 1.8 1.8 2.0 2.0
Silver (g/t) 50 53 46 48 49 51
Matagami 100%
Bracemac-McLeod UG Ore (Mt) 1.21 1.01 4.2 1.5 5.4 2.5 AC
Zinc (%) 6.24 6.39 6.8 5.9 6.7 6.1
Copper (%) 1.29 1.06 1.1 1.0 1.1 1.0
Silver (g/t) 16.9 21.9 27 14 25 17
Gold (g/t) 0.37 0.36 0.6 0.4 0.6 0.4
Total North America (Mt) 8.20 8.59 7.5 5.5 16 14
Zinc (%) 4.38 4.49 5.9 4.9 5.1 4.6
Copper (%) 1.91 1.95 1.4 1.6 1.7 1.8
Silver (g/t) 45.1 49.3 35 39 40 45
Gold (g/t) 0.05 0.04 0.4 0.1 0.2 0.1

Notes

Kidd Creek: Kidd Creek is a VMS Cu-Zn-Ag deposit. Mineralisation occurs within a rhyolitic volcanic/volcaniclastic sequence as massive sulphide lenses of dominantly pyrite-pyrrhotite-sphalerite-galena-rich ores that are underlain by copper (chalcopyrite) stringer zones.

Ore Reserves are based on the approved mining plan to 9600ft depth.

Mineral Resources and Ore Reserves changes are the result of mining drawdown, with some adjustments due to updated mine design, cost reductions, and commodity pricing changes.

January to December 2015 production totalled 2.15Mt at 3.6% Zn, 1.9% Cu and 46g/t Ag.

The majority of Ore Reserve in the Probable category reflects geotechnical and economic uncertainty during the latter years of the mine plan, rather than geological uncertainty.

Mine life is anticipated to be 6.3 years (Early 2022). There are no known land tenure issues that could affect the production plan.

Bracemac-McLeod: The Bracemac-McLeod deposits comprise a cluster of polymetallic VMS lenses similar to other deposits mined historically in the Matagami mining camp, except for their generally thinner and complex morphology. The deposits are located 4.5km southeast of Glencore's Matagami concentrator, at depths ranging from 100m to 1,400m below the surface. The deepest deposit, the McLeod Deep lens, has been the focus of a feasibility study in 2015.

Ongoing delineation diamond drilling resulting to the addition of 1.2Mt of Mineral Resources, located mainly in the McLeod West and C lenses. The geological models and the resource block models for all Bracemac lenses (Main, KT and Upper) and McLeod A, B, C and West lenses were revised regularly in 2015 based on new information derived from underground delineation diamond drilling and geological mapping. For most massive to semi-massive sulphide lenses, there is significant lower grade stringertype mineralisation in the immediate footwall. These stringer zones are now categorised as Measured Mineral Resources. The lower extension of the McLeod B lens (900m to 1,000m) is categorised as Inferred Mineral Resource. Upcoming diamond drilling early 2016 will likely upgrade this portion of the orebody to Indicated confidence category and hence bridge between McLeod Lower and Deep McLeod Deep lenses.

Underground mining production started in May 2013. The Ore Reserves encompass, on average, 11% of external dilution and are meant to support a 2,700 tpd production for 2016, 2017 and decreasing to 2,200 tpd for the first quarter of 2018, which is currently the expected end of the mine life.

Mine production for year 2015 was 0.9Mt grading 6.0% Zn, and 1.0% Cu, 19g/t Ag and 0.34g/ Au.

The Bracemac-McLeod mine is contained on two mining leases expiring in April 2033.

PD–1: The PD1 deposit is a polymetallic VMS deposit of the same age and derived from the same ore-forming hydrothermal system as the rest of the Matagami camp deposits. It is located 40km west of Glencore's Matagami concentrator and offices.

The PD1 deposit was discovered in 1974. A total of 50 historical drill holes were drilled between 1974 and 1984. In 2010, 25 additional holes were drilled in the upper portion of the deposit above 100m vertical depth, including 3 duplicate holes to validate the historical data. The deposit is located on a mining claim owned by Glencore Canada Corporation.

Errington: The Errington deposit is a polymetallic massive sulphide located in the Sudbury Basin, Ontario. The 5 lenses that make up this deposit are hosted by sedimentary rocks of the Vermilion Formation at the contact of the Onaping and Onwatin formations. The deposits formed by replacement of carbonate mounds and carbonaceous tuffs fuelled by heat from the Sudbury Igneous Complex. Additional enrichment and concentration of metals was provided by deformation from the South Range shear zone.

Discovered in the 1920's, the Errington underground development began in 1924 and ended in 1928. A total of 129,713t of ore were produced from Errington.

In order to confirm both the morphology and grade of these historical resources based on 1,070 historical diamond drill holes, 175 supplementary diamond drill holes were carried

out for a total of 50,000m. The resources have been interpolated by ID2.

Vermilion: The Vermilion deposit is a polymetallic massive sulphide located in the Sudbury Basin, Ontario. The 17 lenses that make up this deposit are hosted by sedimentary rocks of the Vermilion Formation at the contact of the Onaping and Onwatin formations. The deposits formed by replacement of carbonate mounds and carbonaceous tuffs fuelled by heat from the Sudbury Igneous Complex. Additional enrichment and concentration of metals was provided by deformation from the South Range shear zone.

Although discovered in the 1920's, the Vermilion underground development only started between 1952 and 1957. A total of 22,172t of ore were hoisted at Vermillion and stockpiled circa since 1958. The stockpile was shipped to Kidd Creek for processing in 1992.

In order to confirm both the morphology and grade of these historical resources based on 609 historical diamond drill holes, 35 supplementary diamond drill holes were carried out for a total of 10,000m. The resources have been interpolated by ID2.

Hackett River Project: The Hackett River project is located in Nunavut, Canada, approximately 480km northeast of Yellowknife and 105km south–southwest of the community of Bathurst Inlet, which is located on the Arctic Ocean.

The Hackett River deposits are situated within the Slave Structural Province, a predominantly Archaean granitegreenstone-sedimentary terrain that lies between Great Slave Lake and Coronation Gulf. The deposits are typical of VMS deposits. Sulphide mineralisation occurs as tabular semi-massive to massive lenses. Stringer sulphide minerals are developed beneath the lower massive lenses in stratiform to pipe-like configurations. Stratiform disseminated sulphides envelop the massive sulphide and stringer zones.

The four principal sulphide occurrences from west to east are the East Cleaver, Boot Lake, Main Zone, and Jo Zone deposits. These deposits were defined as economically viable mineable resources, following boundaries of open cut vs underground mining, through a Preliminary Economic Assessment prior to Glencore's acquisition (2010). A Pre-Feasibility study is now underway and is revisiting both the mining methods and boundaries between open cut and underground; for these reasons the Mineral Resources are only distinguished through their categories instead of exploitation method.

Following the exploration drilling campaign of 2013, which added 114 drill holes totalling 39,000m, we have undertaken the re-interpretation of an in situ resource using Zn equivalent values instead of considering a block dollar value. The resources have been interpolated by ID2.

Bell/Granisle: Bell and Granisle are porphyry copper-gold deposits located at Babine Lake. The Babine deposits are associated with calc-alkaline magmatic rocks. They were formed in the roots of Eocene volcanoes built upon continental crust. Erosion has removed most of the poorly consolidated volcanic piles, exposing the mineral deposits.

Recorded past production from the Bell mine from 1972 to 1992 totalled 77.2Mt averaging 0.47% Cu with an average waste to ore ratio of 0.95:1.

Past production for Granisle from 1966 to 1982 totalled 52.7Mt averaging 0.47% Cu with an average waste to ore ratio of 1.37.

The latest Mineral Resource estimate does not include the additional 25 holes (12,260m) drilled in 2012. The results of the Pre-Feasibility Study delivered in May 2013 are still under review.

A life of mine of 19 years has been estimated, at a processing rate of 50,000 tonnes per day.

There are no known land tenure issues and the mining leases are renewed yearly.

Competent persons

AC = Aline Côté, Project Manager, Glencore Zinc, (OGQ).

  • AM = Adrianus Moerman, Principal Mine Engineer, Glencore Zinc, (APEO).
  • BD = Benoit Drolet, Senior Resource Geologist, Glencore Zinc (APGO).
  • GR = Gilles Roy, District Geologist, Glencore Zinc, (OGQ).
  • JD = Julie Drapeau, Chief Mine Geologist, Glencore Zinc (OGQ).
  • * The Competent Person for the Mineral Resource estimate at Bracemac-McLeod mine is Julie Drapeau. Concerning the McLeod Deep project, the Competent Person for the Mineral Resource estimate is Gilles Roy.
Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Los Quenuales 97.6%
Iscaycruz UG/OC (Mt) 0.88 0.77 3.7 3.1 4.6 3.9 0.8 9 AC
Zinc (%) 6.64 9.50 6.4 7.7 6.5 8.0 7 5
Lead (%) 0.13 0.73 0.7 0.8 0.6 0.8 0.9 0.7
Copper (%) 0.71 0.34 0.4 0.3 0.4 0.3 0.5 0.1
Silver (g/t) 23.5 32.0 39 40 36 38 20 10
Yauliyacu UG (Mt) – 1.53 15 8.5 15 10 3 13 AC
Zinc (%) – 3.56 2.5 3.6 2.5 3.6 2 4
Lead (%) – 1.20 0.4 1.6 0.4 1.5 0.5 1
Copper (%) – 0.37 0.3 0.4 0.3 0.4 0.3 0.4
Silver (g/t) – 158 100 210 100 200 170 200
Illapa 45%
Bolivar UG (Mt) 1.56 1.1 2.8 0.8 4.4 1.9 1.5 2.4 AC
Zinc (%) 7.75 11.4 9.0 11 8.5 11 8 10
Lead (%) 0.83 1.43 1.1 1.0 1.0 1.3 2 0.8
Silver (g/t) 151 311 214 330 192 320 210 300
Porco UG (Mt) 0.74 0.64 0.43 0.4 1.2 1.0 1.0 1.0 AC
Zinc (%) 9.81 10.1 10 11 10 10 10 10
Lead (%) 0.61 0.70 0.8 0.9 0.7 0.8 1 1
Silver (g/t) 104 98.0 100 100 103 99 80 90
Sinchi Wayra 100%
Poopo UG (Mt) 0.2 0.18 0.2 0.2 0.4 0.4 0.8 0.8 AC
Zinc (%) 8.3 8.46 7.5 8.0 7.9 8.2 7 7
Lead (%) 0.6 0.45 0.6 0.7 0.6 0.6 1 1
Silver (g/t) 176 186 260 270 218 230 300 300
Caballo Blanco UG (Mt) 0.47 0.60 3.7 0.5 4.2 1.1 1.5 1.4 AC
Zinc (%) 11.8 9.47 9.1 9.4 9.4 9.4 9 9
Lead (%) 1.91 2.35 1.2 2.1 1.3 2.2 1 2
Silver (g/t) 127 234 79 200 84 220 80 200
AR Zinc 100%
Aguilar Pit OC (Mt) 0.37 0.50 1.0 2.6 1.4 3.1 0.02 1.6 AC
Zinc (%) 2.43 2.32 2.5 2.3 2.5 2.3 1 2
Lead (%) 2.04 1.99 2.5 1.9 2.4 1.9 4 2
Silver (g/t) 58.1 55.6 62 51 61 52 80 50
Aguilar UG (Mt) 2.46 0.99 0.8 1.0 3.3 2.0 0.1 1.5 AC
Zinc (%) 7.96 9.42 11 9.9 8.8 9.7 11 7
Lead (%) 8.59 9.68 10 15 9.0 12 7 6
Silver (g/t) 187 215 175 168 184 191 160 100
Perkoa 90% UG/OC (Mt) 2.10 1.71 2.7 4.0 4.8 5.7 2.3 2.3 AC
Zinc (%) 17.4 17.5 12 13 14 14 11 11
Rosh Pinah 80.1% UG (Mt) 2.02 2.59 6.7 8.2 8.7 11 4.4 5.2 EM
Zinc (%) 7.88 7.58 8.3 7.7 8.2 7.7 7 7
Lead (%) 1.72 2.21 1.6 1.8 1.6 1.9 1 1
Silver (g/t) 29.1 38.7 25 24 26 28 26 32
Pallas Green 100% (Mt) – – – – – – 44 44 AH
Tobermalug Zone UG Zinc (%) – – – – – – 7 7
Lead (%) – – – – – – 1 1
Total Other Zinc (Mt) 10.8 10.6 37 29 48 40 59 80
Zinc (%) 9.75 9.36 6.1 6.9 6.9 7.5 7 6
Lead (%) 2.61 2.11 1.0 1.7 1.4 1.8 1 1
Copper (%) 0.06 0.08 0.16 0.15 0.14 0.13 0.1 0.1
Silver (g/t) 89.7 111 81 99 83 102 24 55

Other Zinc Mineral Resources (Los Quenuales, Illapa, Sinchi Wayra, AR Zinc, Perkoa, Rosh Pinah, Pallas Green)

Name of operation Attributable
interest		 Mining
method		 Commodity Proved Ore Reserves
31.12.15		 31.12.14 31.12.15 Probable Ore Reserves
31.12.14		 31.12.15 Total Ore Reserves
31.12.14		 Competent
Person
Los Quenuales 97.6%
Iscaycruz UG/OC Ore (Mt) 0.18 0.70 2.7 3.0 2.9 3.7 AC
Zinc (%) 4.90 8.77 6.1 7.0 6.0 7.3
Lead (%) 0.49 0.69 0.8 0.7 0.8 0.7
Copper (%) 0.30 0.25 0.2 0.2 0.2 0.2
Silver (g/t) 28.3 29.0 45 36 44 34
Yauliyacu UG Ore (Mt) – 0.78 3.8 3.4 3.8 4.2 AC
Zinc (%) – 2.08 2.0 2.3 2.0 2.3
Lead (%) – 0.90 0.3 1.0 0.3 1.0
Copper (%) – 0.25 0.2 0.2 0.2 0.2
Silver (g/t) – 123 130 110 130 110
Illapa 45%
Bolivar UG Ore (Mt) – 0.23 0.93 0.66 0.93 0.89 AC
Zinc (%) – 9.68 9.2 10 9.2 10
Lead (%) – 1.16 1.1 1.4 1.1 1.3
Silver (g/t) – 245 234 290 234 280
Porco UG Ore (Mt) 0.16 0.09 0.70 0.62 0.86 0.70 AC
Zinc (%) 6.24 7.50 6.7 8.0 6.6 8.0
Lead (%) 0.45 0.63 0.5 0.5 0.5 0.6
Silver (g/t) 118 115 75 74 83 79
Sinchi Wayra 100%
Poopo UG Ore (Mt) 0.03 0.02 0.08 0.09 0.11 0.10 AC
Zinc (%) 7.8 8.80 7.1 7.0 7.3 7.3
Lead (%) 0.4 0.37 0.6 0.6 0.6 0.6
Silver (g/t) 150 188 170 210 165 210
Caballo Blanco UG Ore (Mt) 0.07 0.04 0.32 0.42 0.39 0.46 AC
Zinc (%) 8.98 8.03 11 8.0 11 8.0
Lead (%) 1.46 3.10 1.4 1.8 1.4 1.9
Silver (g/t) 104 399 92 190 94 210
AR Zinc 100%
Aguilar UG Ore (Mt) 1.12 0.66 0.41 0.68 1.5 1.3 AC
Zinc (%) 7.87 10.5 10 7.9 8.5 9.2
Lead (%) 8.78 11.7 11 12 9.2 12
Silver (g/t) 194 245 151 215 182 230
Perkoa 90% UG/OC Ore (Mt) 1.10 0.99 2.2 2.9 3.3 3.8 AC
Zinc (%) 18.0 15.0 14 12 15 13
Rosh Pinah 80.1% UG Ore (Mt) 0.83 1.25 4.9 5.3 5.7 6.5 PC
Zinc (%) 10.0 8.45 8.8 8.9 9.0 8.8
Lead (%) 1.52 2.31 1.7 1.7 1.6 1.8
Silver (g/t) 32 45 24 23 25 27
Total Other Zinc (Mt) 3.49 4.76 16 17 20 22
Zinc (%) 11.4 9.14 7.4 7.6 8.1 8.0
Lead (%) 3.26 2.57 1.1 1.5 1.5 1.7
Copper (%) 0.02 0.08 0.1 0.1 0.1 0.1
Silver (g/t) 80.1 88.4 69 64 71 69

Other Zinc Ore Reserves (Los Quenuales, Illapa, Sinchi Wayra, AR Zinc, Perkoa, Rosh Pinah)

Notes

Iscaycruz: Zinc, lead and copper mineralisation are exposed as subvertical massive sulphide orebodies; described as skarn, breccias and carbonate replacement type along 12km corridor hosted in clay-rich limestone and dolomite rocks. Hydrothermal mineralisation assemblages are mainly composed of sphalerite, galena, pyrite and chalcopyrite distributed in five production zones named Limpe Centro, Chupa, Tinyag II, Tinyag I and Santa Este from north to south.

The Inferred Mineral Resource has reduced by 8Mt: 6Mt due to the completion of internal technical studies on Limpe Norte which demonstrated a change in economic potential; the remaining 2Mt were upgraded to Measured and Indicated.

The reductions of the Zn and Pb grades in Measured and Indicated are due to the conversion of lower grade Inferred material.

The mine was placed on care and maintenance in November 2015 with a view to restarting in the appropriate economic conditions.

Production for year 2015 to the end of December was 1.2Mt grading 7.1% Zn, 0.8% Pb, 0.5%Cu and 48g/t Ag.

The expected life of Iscaycruz is 2 to 3 years based on Ore Reserves and 3 to 5 years based on Mineral Resources.

Expiry date of relevant mining/concession licences: permanent.

Yauliyacu: Main mineralisation occurs as sphalerite, galena, tetrahedrite and chalcopyrite in 60° to 80° northwest dipping narrow veins, stockwork and minor replacement massive orebodies exposed in about 5km length extension and +2km depth extension. This hydrothermal mineralisation is strongly structurally controlled and hosted in folded rock units as calcareous sandstones (red beds), conglomerates, volcanic tuffs, andesites and limestones.

Mineral Resource estimate methodology for two zones of Yauliyacu was changed from 2D polygonal to a 3D Ordinary Kriging estimate. There was an increase in continuity in these zones resulting in increased Indicated Mineral Resource tonnage. A systematic review of the mining voids in some of the remaining zones is currently being undertaken and has resulted in the temporary loss in confidence in a portion of the resource, this is reflected in the reduced Mineral Resource metal grades.

Production for year 2015 to the end of December was 1.4Mt grading 2.2% Zn, 0.9% Pb and 81g/t Ag.

The expected life of Yauliyacu is 3 to 4 years based on Ore Reserves and 10 to 12 years based on Mineral Resources.

Expiry date of relevant mining/concession licences: permanent.

Illapa and Sinchi Wayra: The majority of the deposits within the Illapa and Sinchi Wayra portfolio are epigenetichydrothermal base metal type vein and fault filled mineralisation hosted within a variety of lithologies from volcanic tuffs to sedimentary packages. The main mineral assemblages are composed of sphalerite, marmatite, galena, silver rich galena and silver sulfosalts. The resources are usually based on multiple structures with Porco containing over 100 different veins. The typical dimensions of these structures is +500m in length and +450m depth profile with mineralisation open at depth; average vein widths from 0.2 - 4.0m.

Caballo Blanco operational unit consists of three mines: Colquechaquita, Reserva and Tres Amigos, supplying the central plant "Don Diego" situated close to Potosi. The 2015 figures are based on a newly re-interpreted, re-interpolated block model which now takes into consideration spatial grade variation through the use of 3D modelling, which explains the important increase of the Mineral Resource tonnage. Increase of its Zn Reserve grade is due to better mining selectivity, linked to the combined use of 3D modelling and new financial assumptions.

Regarding Bolivar, only the two main ore zones (Bolivar and Rosario) have been fully converted to 3D and reported; the Mineral Resource grades have decreased to the absence of the Nane zone. Full 3D conversion of Bolivar is still in progress and will be completed by next year.

Production for the year 2015 to the end of December for each of the operations was:

Bolivar – 0.31Mt grading 7.8% Zn, 1.0% Pb, 240 g/t Ag.

Porco – 0.32Mt grading 5.6% Zn, 0.5% Pb, 79g/t Ag.

Poopo – 0.10Mt grading 6.9% Zn, 0.5% Pb, 248g/t Ag.

Caballo Blanco – 0.33Mt grading 7.0% Zn, 1.0% Pb, 108g/t Ag.

The expected life of the mines as a group, considering current production capacities, is an average of 2.5 years based on Ore Reserves and 7 to 10 years based on Mineral Resources.

According to the new Bolivian Constitution enacted in 2009, natural resources belong to the Bolivian people. The Bolivian State can enter into mining contracts with private investors to operate them. As with all private investors in Bolivia, Illapa and Sinchi Wayra do not hold property rights over mining resources in the country, but rather hold the right to exploit them pursuant to Bolivian legislation.

Expiry date of relevant mining concessions / authorisations or contracts is different for each mine: Porco and Bolivar – July 2028 (joint venture agreement entered into in 2013), Poopo – January 2027 (lease agreement with a local cooperative entered into in 2002), and permanent in respect of Caballo Blanco.

Aguilar: Mineralisation is classified as sedex type with sulphide layers in between siliciclastic and shale rocks with a postsecondary metasomatic over print between two intrusive stocks. Galena-rich, sphalerite, marmatite pyrite orebodies as lenses shape, locally brittle-style hydrothermal breccias, minor veinlets-stockworks and dissemination defines the economic portion of mineral inventories. Strike length extension of mineral geometries is variable and reaches up to 300m on north-south extension, about 55m in width and reaches up to 160m in depth.

The decrease of the open-cut Mineral Resources is due to the constraining of the ore within a newly generated pit shell, representing different long-term pricing. Although demonstrating economic potential, the tonnes contained in this pit have not demonstrated economic certainty and were not converted to Reserves (the 2014 comparative states only the UG reserves, while last year's reported 2014 was inclusive of the combined OC and UG tonnes). It is foreseen that these tonnes will most likely be converted in the next three years.

The increase of the underground Mineral Resources is due to the re-interpretation of Piqué Inferior; subsequently it was

converted to Ore Reserves which have also increased for the underground portion of Aguilar.

Production for year 2015 to the end of December was 0.67Mt grading 4.9% Zn, 4.4% Pb and 101g/t Ag.

The remaining mine life is approximately 2 years based on Ore Reserves and 3-5 years based on Mineral Resources.

Expiry date of relevant mining/concession licences: permanent.

Perkoa: Economic mineralisation at Perkoa occurs mainly as VMS lenses of sphalerite, galena, pyrite, and pyrrhotite. These massive sulphide lenses vary in width from 1m to 30m thick in places. These massive sulfide lenses dip at an average of 75°, striking northeast-southwest and consist of two main orebodies. Igneous intrusives have also caused endothermic and exothermic skarn like disseminated mineralisation of remobilised galena, pyrite, and to a lesser extent pyrrhotite and sphalerite.

Changes were applied to the modifying factors of the reserve. A reduction to the internal dilution was validated on the basis of 2 years of mining combined with a proper validation of the actual total dilution, which it turn has led to an overall increase of the reserve grade.

Production for year 2015 was 0.50Mt grading 18.4% Zn.

Current expected life of mine is approximately 5 years based on Ore Reserves and approximately 6.5 years based on Mineral Resources. Expiry date of relevant mining/concession licences: 20 March 2027.

Rosh Pinah: Sedimentary exhalative (SEDEX) and remobilised zinc and lead sulphide ores are contained within the socalled Ore Equivalent Horizon, a stratiform horizon that is extensively folded and thrusted, resulting in discreet, subvertical orebodies that vary in size from 0.4 - 8Mt.

Metallurgical test work is underway to improve throughput and metal recoveries from the WF3 orebody and produce a saleable Cu concentrate by 2017.

Mine production for the period January to December 2015 was 0.71Mt at 8.7% Zn and 2.1% Pb.

Expected life of mine is 8.1 years based on Ore Reserves. Rosh Pinah has previously been able to extend its expected life of mine through exploratory drilling in the area covered by its concession. Potential Life of Mine based on the conversion of Inferred Mineral Resources is 9.9 years. The expiry date of ML 39+AW (Mining Licence and Accessory Works) is 11 February 2020.

Pallas Green Project: The Pallas Green project is situated near Limerick in Southwestern Ireland. The Tobermalug zone consists of multiple, subhorizontal, stratiform lenses of Irish-type, breccia-hosted, sphalerite-galena-pyrite within a Carboniferous limestone. The lenses occur over an area 4,000m by 4,000m, and from 300m to 1,300m below surface.

The Inferred Mineral Resource is based on 370,000m of diamond drilling in 735 drill holes completed between 2005 and the end of 2014. Drill spacing is nominally 100m but 178 infill drill holes at 50m spacing have been completed. Mineralisation wireframes were built taking into account a cut-off of Zn + Pb and a minimum 3.0m true thickness, and constrain interpolation by Inverse Distance Weighting (IDW) in a block model.

No drilling was conducted in 2015, and there is no change in the Mineral Resource.

Competent Person

AC = Aline Côté, Project Manager, Glencore Zinc, (OGQ).

  • AH = Allan Huard, Senior Geologist, Glencore Zinc, (APGO).
  • EM = Eric Mouton, Technical Service Manager, Glencore Zinc, (SACNASP).
  • PC = Phil Crowther, Long term Planning Consultant, Glencore Zinc, (PLATO).

Integrated Nickel Operations (INO) Mineral Resources (Raglan, Sudbury)

Name of Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Raglan 100% UG (Mt) 5.77 5.06 12.69 9.34 18.5 14.4 18 21 DP
Nickel (%) 3.92 3.49 3.25 3.24 3.46 3.32 3.0 3.2
Copper (%) 0.94 0.88 0.97 0.97 0.96 0.94 0.9 0.9
Cobalt (%) 0.08 0.08 0.07 0.08 0.07 0.08 0.1 0.1
Platinum (g/t) 0.98 0.90 0.96 0.93 0.97 0.92 0.9 1.0
Palladium (g/t) 2.29 2.22 2.41 2.32 2.37 2.29 2.3 2.3
Sudbury 100% UG (Mt) 9.86 11.1 18.67 18.4 28.5 29.5 15 18 SEK
Nickel (%) 1.81 1.83 2.42 2.41 2.21 2.19 1.9 1.8
Copper (%) 1.92 2.08 1.15 1.22 1.42 1.54 3.0 2.5
Cobalt (%) 0.04 0.04 0.06 0.06 0.05 0.05 0.1 0.1
Platinum (g/t) 1.01 1.01 0.50 0.53 0.67 0.71 1.1 0.9
Palladium (g/t) 1.10 1.14 0.54 0.56 0.73 0.78 1.3 1.0
Total INO (Mt) 15.6 16.2 31.4 27.7 47.0 43.9 33 39
Nickel (%) 2.59 2.35 2.76 2.69 2.70 2.56 2.5 2.6
Copper (%) 1.56 1.70 1.08 1.14 1.24 1.34 1.8 1.6
Cobalt (%) 0.05 0.05 0.06 0.07 0.06 0.06 0.1 0.1
Platinum (g/t) 1.00 0.98 0.69 0.66 0.79 0.78 1.0 1.0
Palladium (g/t) 1.54 1.48 1.30 1.15 1.37 1.28 1.8 1.7

Integrated Nickel Operations Ore Reserves (Raglan, Sudbury)

Name of Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Raglan 100% UG Ore (Mt) 3.75 4.23 6.68 2.49 10.43 6.72 PDG
Nickel (%) 3.01 3.01 3.05 3.88 3.04 3.33
Copper (%) 0.73 0.75 0.77 0.88 0.76 0.80
Cobalt (%) 0.07 0.06 0.06 0.08 0.06 0.07
Platinum (g/t) 0.76 0.77 0.89 1.00 0.84 0.85
Palladium (g/t) 1.81 1.86 2.04 2.25 1.96 2.00
Sudbury 100% UG Ore (Mt) 7.11 8.69 3.89 4.58 11.00 13.3 SEK
Nickel (%) 1.39 1.42 1.47 1.37 1.42 1.41
Copper (%) 2.06 2.10 0.79 0.76 1.61 1.64
Cobalt (%) 0.03 0.03 0.04 0.04 0.03 0.03
Platinum (g/t) 1.16 1.12 0.30 0.48 0.85 0.90
Palladium (g/t) 1.25 1.25 0.31 0.41 0.92 0.96
Total INO (Mt) 10.9 12.9 10.6 7.1 21.4 20.0
Nickel (%) 1.95 1.94 2.47 2.25 2.21 2.05
Copper (%) 1.60 1.66 0.78 0.80 1.20 1.36
Cobalt (%) 0.04 0.04 0.05 0.05 0.04 0.04
Platinum (g/t) 1.02 1.01 0.67 0.66 0.85 0.88
Palladium (g/t) 1.44 1.45 1.40 1.06 1.43 1.31

Notes

For the purposes of this statement, the term 'Ore Reserves' as defined by the JORC Code 2012 has the same meaning as 'Mineral Reserves' as defined in the CIM Standards 2014. The resource totals have been restated in compliance with the JORC Code.

There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Reserves.

Depending on when production is scheduled, Mineral Reserves and Resources are calculated using a blend of short, medium, or long term metal price assumptions and exchange rates.

  • Raglan: Ni-Cu-Co-PGE mineralisation is located at or near the base of subvolcanic mafic-ultramafic intrusive complexes referred to as the "Raglan Formation". Economic Ni-Cu-Co-PGE mineralisation is composed of disseminated, nettextured, and massive pyrrhotite – pentlandite – chalcopyrite rich sulphides contained within more than 135 individual sulphide lenses, extending from surface to more than 750m vertical depth. The size of these high-grade sulphide lenses varies significantly from 0.01Mt to 5.2Mt, averaging 0.2Mt. In 2015, the significant and positive change in Mineral Reserves comes from the conversion of Indicated Mineral Resources to Probable Mineral Reserves for Mining Project 14 (+4Mt) and also from underground discoveries mostly at Kikialik and Qakimajurq (+1Mt); offsetting the annual mine production. Remaining life of mine is in excess of 20 years. Expiry date of relevant mining leases and exploration licenses: depending on the mine/project, range from 30 July 2017 to 17 August 2026.
  • Sudbury: Sulphide deposits sit on broadly defined trends of mineralisation along basal brecciated rocks of the Sudbury Igneous Complex as pentlandite-pyrrhotite-chalcopyrite rich concentrations as well as within the underlying footwall in fractured pathways as chalcopyrite dominated polymetallic (Cu, Ni, Au, Ag, Pt, Pd) vein-style sulphides. The total Mineral Reserve and Resource tonnage decreased from 2014 due to production. Cut-off grades are calculated for each individual mine site or resource based on a metal equivalent or net smelter return value taking into account all recoverable metals. The current LOM plan based on Mineral Reserves extends to the end of 2021. Significant undeveloped Mineral Resources and exploration potential provide an opportunity to extend mine life well beyond 2021. All Land holdings in Sudbury covering existing Mineral Reserves and Resources are patented and 100% owned by Glencore with the exception of an area covered by two licences of occupation which are held in perpetuity and one mining lease which expires in 2033.

Competent Persons

DP = Daniel Patry, Glencore Nickel, P.Geo (OGQ).

  • PDG = Philémon Desrochers-Gagnon, Glencore Nickel, P.Eng. (OIQ).
  • SEK = Steve Kormos, Glencore Nickel, P. Geo. (APGO).

Murrin Murrin Mineral Resources

Name of Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Murrin Murrin 100% OC (Mt) 167.3 184.1 79.0 72.2 246.3 256.3 18 12 SK
Nickel (%) 1.01 1.03 0.99 0.99 1.00 1.02 0.94 0.94
Cobalt (%) 0.071 0.073 0.083 0.077 0.075 0.074 0.067 0.059

Murrin Murrin Ore Reserves

Name of Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Murrin Murrin 100% OC Ore (Mt) 151.6 160.4 39.9 40.0 191.6 200.4 KG/PW
Nickel (%) 0.97 0.97 0.96 0.96 0.97 0.97
Cobalt (%) 0.070 0.069 0.069 0.067 0.069 0.069

Koniambo Mineral Resources

Name of Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Koniambo 49% OC (Mt) 18.1 20.0 29.1 46.0 47.2 66.0 95 84 NF
Nickel (%) 2.48 2.55 2.42 2.44 2.44 2.48 2.5 2.5

Koniambo Ore Reserves

Name of Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Koniambo 49% OC Ore (Mt) 14.2 16.2 20.9 42.5 35.1 58.7 HD
Nickel (%) 2.33 2.50 2.29 2.30 2.30 2.35

Other Nickel Mineral Resources

Name of Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
operation Interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Kabanga 50% UG (Mt) 13.8 13.8 23.4 23.4 37.2 37.2 21 21 SEK
Nickel (%) 2.49 2.49 2.72 2.72 2.63 2.63 2.6 2.6
Copper (%) 0.34 0.34 0.36 0.36 0.35 0.35 0.3 0.3
Cobalt (%) 0.21 0.21 0.19 0.19 0.20 0.20 0.2 0.2
Platinum (g/t) 0.16 0.16 0.42 0.42 0.32 0.32 0.3 0.3
Palladium (g/t) 0.19 0.19 0.28 0.28 0.25 0.25 0.3 0.3

Notes

For the purposes of this statement, the term 'Ore Reserves' as defined by the JORC Code 2012 has the same meaning as 'Mineral Reserves' as defined in the CIM Standards 2014. The Mineral Resource totals have been restated in compliance with the JORC Code.

There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Reserves.

Depending on when production is scheduled, Mineral Reserves and Resources are calculated using a blend of short, medium, or long term metal price assumptions and exchange rates.

Murrin Murrin: Nickel and cobalt mineralisation at Murrin Murrin operation is hosted within a laterite formed from the weathering of ultramafic rocks. The resources are hosted in multiple deposits over three main project areas (North, South and East). Mineral Resource and Ore Reserve figures as at 31 December 2015 are generated by depletion of the resource models by using end-of-period surface surveys as at 30 September 2015, with adjustments applied for October to December production.

The Murrin Murrin 2015 Ore Reserve estimate is based on the optimised Base Case pit shells for Measured and Indicated Mineral Resources, and includes scats and stockpiles. Updates to process modelling, triennial shutdown costs and operating costs have been included.

Ore Reserve grades have been subject to the application of grade modifying factors. These have been derived from analysis of the previous two years mine-to-mill grade performance and result in grade modifying factors of 95% and 89% for nickel and cobalt respectively.

At the forecast throughput capacity of 4.5 million tonnes per annum, the project's operating life is in excess of 30 years. Expiry dates for relevant tenements differ for each tenement and range from 2017 to 2037.

Koniambo: Nickel rich laterite deposits are developed on variably serpentinized ultramafic rocks. The Ore Reserve estimate for the deposit was established from a new Life of Mine Resource Model established in 2015, and has been adjusted to incorporate changes in ore classification, and actual completed production up to 30 September 2015, with adjustments applied for forecast production between October and December. Mineral Resources for the Life of Mine area have been calculated by 3D modelling and Conditional Simulation geostatistical methods and for those areas outside of this footprint by the plan polygonal method. The reserve cut-off grade used is 2.0% Ni. Expected mine life is 17 years. The expiry date of relevant mining property licences range from April 2017 to 31 December 2048. Production began in April 2013 and mining is supporting a one line operation at the Metallurgical Plant as at 31 December 2015. Ore Reserves stated include an estimated 468kt at 2.30% of stockpiles between the mine and process plant. Ore Reserves and Mineral Resources exclude an additional 26 million tonnes of medium grade material at 1.9% Ni below the current cut-off grade (< 2.0% Ni).

  • Kabanga: The current delineated Mineral Resource is comprised of 88% of contact-style massive sulphide and 12% of ultramafic-hosted disseminated to semi-massive sulphide mineralisation. The ultramafic bodies are hosted in a sequence of metamorphosed pelitic sediments that are overturned, steeply dipping. All resource estimates are done using Ordinary Kriging and are based on block models with appropriate variography. A cut-off grade of 1% Niequivalent is used for all Mineral Resources except ultramafic-hosted disseminated to semi-massive sulphide (UMIN) mineralisation at Tembo (1.1% Ni cut-off grade applied). The contribution to the Ni-equivalent value is provided by copper, cobalt and platinum group elements. The last Mineral Resource drilling campaign was done in 2009 and the latest Mineral Resource estimate dates from June 2010. The delineated Kabanga Mineral Resources are sufficient to support a 30 year mine life as currently studied. All resources are held under a Retention Licence which was renewed for an additional 5 year period on 02 May 2014.
  • Portfolio changes: The following operations were sold in the course of the year: Cosmos (June 2015); Falcondo (August 2015); and Araguaia (September 2015).

Competent Persons

HD = Hubert Dumon, Koniambo Nickel SAS, (AusIMM).

  • KG = Kellie Gill, Minara Resources Pty Ltd., (mining and metallurgical costs, reserve optimisation), (AusIMM).
  • NF = Nicholas Fenner, Koniambo Nickel SAS, P.Geo (APGO).
  • PW = Paul Wiltshire, Minara Resources Pty Ltd., (process plant modelling assumptions), (AusIMM).
  • SK = Stephen King, Minara Resources Pty Ltd., (geostatistical analysis, modelling/estimation and resource classification), (AusIMM).
  • SEK = Steve Kormos, Glencore Nickel, P. Geo (APGO).

Chrome Mineral Resources

Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources
Name of operation Attributable
interest		 Mining
method		 Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Competent
Person
Waterval Mine 79.5% UG Ore (Mt) 16.331 16.487 0.98 0.98 17.31 17.47 0.6 0.6 DR/MM
Cr2O3 (%) 41.3 41.3 42.6 42.6 41.4 41.4 43 43
Marikana West 79.5% UG Ore (Mt) 2.909 3.189 1.60 1.60 4.50 4.79 – – DR/MM
Cr2O3 (%) 42.41 42.39 42.6 42.6 42.5 42.5 – –
Kroondal Mine 79.5% UG/OC Ore (Mt) 7.750 8.827 2.16 2.16 9.91 10.98 – – DR/MM
Cr2O3 (%) 42.75 42.79 41.5 41.5 42.5 42.5 – –
Kroondal 79.5% UG/OC Ore (Mt) 10.799 11.766 4.98 4.99 15.78 16.75 – – DR/MM
Gemini Cr2O3 (%) 42.47 42.44 41.6 41.6 42.2 42.2 – –
Marikana East 79.5% UG Ore (Mt) 4.178 4.183 0.75 0.75 4.92 4.93 – – DR/MM
Cr2O3 (%) 42.25 42.23 41.8 41.7 42.2 42.1 – –
Horizon Mine 79.5% UG/OC Ore (Mt) 4.248 4.248 8.04 8.04 12.28 12.28 2.4 2.4 DR/MM
Cr2O3 (%) 44.53 44.53 43.8 43.8 44.1 44.1 44 44
Boshoek Mine 79.5% OC/UG Ore (Mt) – – 17.09 17.09 17.09 17.09 – – DR/MM
Cr2O3 (%) – – 40.5 40.5 40.5 40.5 – –
Thorncliffe Mine 79.5% UG/OC Ore (Mt) 38.906 41.627 13.75 9.52 52.65 51.14 47.3 34.1 DR/SV
Cr2O3 (%) 40.61 40.59 41.0 41.0 40.7 40.7 38 40
Helena Mine 79.5% UG/OC Ore (Mt) 23.786 22.987 11.17 6.93 34.96 29.92 133.5 85.8 DR/SV
Cr2O3 (%) 39.75 39.96 38.2 38.1 39.2 39.5 38 39
Wonderkop 79.5% UG Ore (Mt) – – 7.05 7.05 7.05 7.05 – – DR/MM
Cr2O3 (%) – – 40.6 40.6 40.6 40.6 – –
Extension 9 79.5% UG Ore (Mt) – – 13.85 13.37 13.85 13.37 – – DR/MM
Cr2O3 (%) – – 41.4 41.3 41.4 41.3 – –
De Grooteboom 79.5% UG/OC Ore (Mt) 0.812 0.817 0.65 0.64 1.46 1.46 – – DR/SV
Cr2O3 (%) 40.28 40.28 40.3 40.3 40.3 40.3 – –
Klipfontein/ 79.5% UG Ore (Mt) 12.433 11.387 15.79 16.82 28.23 28.21 116.0 115.5 DR/MM
Waterval Cr2O3 (%) 42.11 42.12 42.0 42.0 42.0 42.0 42 42
Total Chrome (Mt) 122 126 98 90 220 215 300 238
Cr2O3 (%) 41.2 41.3 41.1 41.2 41.2 41.2 40 41

Chrome Ore Reserves

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Waterval Mine 79.5% UG Ore (Mt) 10.534 10.737 0.91 0.91 11.45 11.65 DR/MM
Cr2O3 (%) 30.94 30.93 26.0 26.0 30.5 30.5
Marikana West 79.5% UG Ore (Mt) 0.584 0.777 – – 0.58 0.78 DR/MM
Cr2O3 (%) 28.92 28.87 – – 28.9 28.9
Kroondal Mine 79.5% UG/OC Ore (Mt) 1.895 2.548 1.94 1.90 3.83 4.45 DR/MM
Cr2O3 (%) 28.44 28.87 28.1 28.1 28.3 28.6
Kroondal Gemini 79.5% UG/OC Ore (Mt) 6.942 7.774 4.68 4.70 11.63 12.47 DR/MM
Cr2O3 (%) 31.05 31.00 28.3 28.2 29.9 29.9
Marikana East 79.5% UG Ore (Mt) 0.306 0.005 0.20 – 0.51 0.01 DR/MM
Cr2O3 (%) 29.16 28.89 28.1 – 28.7 28.9
Horizon Mine 79.5% UG Ore (Mt) 2.102 2.102 – – 2.10 2.10 DR/MM
Cr2O3 (%) 23.91 23.91 – – 23.9 23.9
Boshoek Mine 79.5% UG/OC Ore (Mt) – – 0.58 0.58 0.58 0.58 DR/MM
Cr2O3 (%) – – 26.1 26.1 26.1 26.1
Thorncliffe Mine 79.5% UG/OC Ore (Mt) 22.413 24.445 7.80 5.94 30.21 30.39 DR/SV
Cr2O3 (%) 36.94 36.94 37.9 35.5 37.2 36.7
Helena Mine 79.5% UG/OC Ore (Mt) 3.640 3.823 0.18 – 3.82 3.82 DR/SV
Cr2O3 (%) 34.73 36.78 30.6 – 34.5 36.8
Klipfontein/ 79.5% UG Ore (Mt) 0.232 – 0.29 – 0.53 – DR/MM
Waterval Cr2O3 (%) 25.94 – 27.3 – 26.7 –
Total Chrome (Mt) 49 52 17 14 65 66
Cr2O3 (%) 33.5 33.8 32.6 31.0 33.3 33.2

Notes

Tonnages are quoted as million metric tonnes.

Grades are quoted as %Cr2O3.

The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves.

The chromitite assets include those owned by Glencore and Merafe in different ownership percentages, the attributable interest in such assets remain as reflected.

All Glencore Ferroalloys' chrome operations mine the chromitite deposits developed within the world renowned Bushveld Complex of South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGEs) in the world. The Bushveld Complex stretches 350km east-west and 450km north-south. The chrome ore is mined from shallow dipping (10o – 14o ) tabular orebodies. Although there are numerous chromitite layers developed in the Bushveld Complex, the chromitite layers targeted for economic exploitation are the LG6/LG6A Chromitite Layer package and the MG1 Chromitite Layer.

No cut-off grades are applied to the chromitite layers currently being mined. The chromitite layer grades show exceptional regional grade consistency and continuity.

The chromitite layers are mostly mined underground using trackless mechanised mining methods on a board and pillar mine layout design.

The Mineral Resources are estimated as chromitite tonnages and grades to reflect the grades of the various individual chromitite layers. Both the LG6 and MG1 Chromitite Layers which Glencore currently mine are discrete solid chromitite layers with sharp contacts.

Changes in the year on year Mineral Resource tonnage and grade estimates are mainly due to mining depletion and changes due to additional geological information gained through exploration. These changes reflect in the tonnage and grade reports from the grade block models. The most significant changes are noted below.

  • Thorncliffe: the Mineral Resources had a net increase of 18.0Mt. The main contributor to this change was the inclusion of the MG2 Chromitite Package resource tonnages to the tune of 17.0Mt. Mining depletions have been discounted.
  • Helena: the MG2 Chromitite Package resource tonnages were added to the Helena resources and contributed 55.7Mt to arrive at a net Mineral Resource change of 54.0Mt. Mining depletions have been discounted.
  • Kroondal Mine: unmined and remnant mining areas have been removed from the 2015 Mineral Resource estimate. The total tonnage excluded is 0.9Mt. The net change in Kroondal resources is -0.7Mt. Mining depletions have been discounted.

The tonnage and grade estimations are initiated by the geostatistical analysis of the exploration drill hole data. The outcomes of this analysis are used in the construction of block models for each and every mine and project area. The geostatistical analysis of the chromitite data indicates a high degree of continuity both in grade and thickness of the chromitite layers. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency to test the stability of the variograms used and the suitability of the selected cell sizes and Kriging parameters. Tonnages and grades are reported from these block models for each mine and project. There is a high degree of confidence in the tonnage and grade estimations derived from the block models. This is confirmed by the monthly and yearly reconciliation between the block model estimates, the monthly survey measurements and the actual mine production for each operating mine.

The LOM for the operating chrome mines vary between 1 year and 6 years based on the declared Ore Reserves. The LOM periods for the various operating mines, based on all the Mineral Resources converted to Ore Reserves vary between 3 years and 38 years. The Mining Right expiry dates vary from 2022 to 2039 for the operating chrome mines. All the chrome mining rights were granted for an initial period of 30 years. The production rates for the various chrome mines vary from 34kt ROM per month to 110kt ROM per month. Horizon Mine has been put on care and maintenance.

The Prospecting Rights are granted for an initial period of 5 years, extendable for an additional 2 periods of 3 years each. The project areas are mostly covered by Prospecting Rights and the current Prospecting Right periods vary from less than 1 year to 3 years. The Extension 9 Prospecting Right is in its's final cycle of 3 years.

  • PJG = Pieter-Jan Gräbe, Glencore Ferroalloys, (SACNASP); overall responsibility for Mineral Resources and Ore Reserves.
  • SV = Solly Vaid, Glencore Ferroalloys, (PLATO); responsibility for Mineral Resources and Ore Reserves.
  • DR = Dean Richards, Obsidian Consulting Services (SACNASP); responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.
  • MM = Mogomotsi Maputle, Glencore Ferroalloys, (SACNASP), Responsible for Mineral Resources and Ore Reserves.

Vanadium Mineral Resources

Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Rhovan 74.0% OC (Mt) 48.85 24.89 38.7 20.2 87.6 45.1 95 84 DR/SM
V2O5 (%) 0.48 0.52 0.5 0.5 0.5 0.5 0.5 0.5

Vanadium Ore Reserves

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Rhovan 74.0% OC Ore (Mt) 26.66 6.88 12.9 13.4 39.6 20.3 DR/SM
V2O5 (%) 0.48 0.52 0.5 0.5 0.5 0.5

Notes

Tonnages are quoted as million metric tonnes.

Grades are quoted as %V2O5.

The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves.

Glencore Ferroalloys' vanadium mining operations mine the vanadiferous magnetite deposits developed within the Bushveld Complex, South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGE's) in the world.

The magnetite ore is mined from shallow dipping (6o – 25o ) stratified magnetite orebodies. Various ore zones with varying grades can be identified in the orebody. The ore zones are defined based on their magnetite and vanadium content.

The magnetite ore is mined using open cast mining methods.

Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, reclassification and changes in the Mineral Resource and Ore Reserve tonnages and grades due to additional geological information gained through exploration.

Rhovan: There was a net increase of 56.2Mt in the Mineral Resource estimate after mining depletions have been discounted. This was mainly due to a lowering of the magnetite and V2O5 cut-off grades from 23.0% and 1.87% to 15% and 1.85% respectively. A further contribution was due to a correction of erroneous values in the geological database.

The Ore Reserves had a net increase of 21.5Mt after mining depletions have been discounted. The correction in the Mineral Resources had the single biggest contribution to the increase in the Ore Reserves due to the inclusive reporting. Rhovan has completed a Whittle Pit Optimization exercise during the 2014 – 2015 reporting period, and is in the process of designing LOM pit shells based on the most appropriate pit optimization parameters.

Obsidian Consulting Services has estimated the Mineral Resources for Pit 1 and Pit 6. An updated grade block model was constructed during October 2015, following exploration drilling during the 2014 – 2015 reporting period.

The tonnage and grade estimations were done using geostatistical analysis of the exploration drill hole and blast hole data. From this analysis the most appropriate parameters for the construction of block models for the various pits were derived. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency and Slope of Regression to test the stability of the variograms used and the suitability of the selected cell sizes. Other validations included a comparison of distributions of the source data versus estimated results as well as swath plots. Tonnages and grades are reported from the block models for each pit. The degree of confidence in the tonnage and grade estimations derived from the block models is reflected in the classified Mineral Resource classes.

The Rhovan LOM based on the declared Ore Reserves is 16.5 years. The LOM based on all the Mineral Resources converted to Ore Reserves is 33 years. Rhovan is mining from various open cast pits at a mining rate averaging 200kt of ROM per month. The Mining Right expiry date is 2027.

  • PJG = Pieter-Jan Gräbe, Glencore Ferroalloys, (SACNASP); overall responsibility for Mineral Resources and Ore Reserves.
  • DR = Dean Richards, Obsidian Consulting Services, (SACNASP); responsible for data validation, geo-statistical analysis of data, construction of tonnage and grade block models and reporting of tonnage and grades from block models for Mineral Resource and Ore Reserve estimates.
  • SM = Sydney Maseti, Glencore Ferroalloys, (SACNASP); Responsible for Mineral Resources and Ore Reserves.

PGM Mineral Resources

Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Mototolo JV 37% UG/OC (Mt) 29.191 32.394 – – 29.19 32.39 – – CL/DR/FF
3PGE + Gold (g/t) 4.15 4.13 – – 4.2 4.1 – –
Eland Platinum 73.99% UG/OC (Mt) 55.957 56.884 16.36 16.40 72.32 73.29 76.3 76.3 DR
3PGE + Gold (g/t) 4.49 4.49 3.5 3.5 4.3 4.3 4.5 4.5
Zilkaatsnek 100% UG/OC (Mt) – – 2.78 2.78 2.78 2.78 – – DR
3PGE + Gold (g/t) – – 2.5 2.5 2.5 2.5 – –
Schietfontein 70% UG/OC (Mt) – – 6.41 6.41 6.41 6.41 7.0 7.0 DR
3PGE + Gold (g/t) – – 2.3 2.3 2.3 2.3 2.3 2.3
Total PGM (Mt) 85 89 26 26 111 115 83 83
3PGE + Gold (g/t) 4.37 4.36 3.09 3.09 4.09 4.09 4.3 4.3

PGM Ore Reserves

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Mototolo JV 37% UG/OC Ore (Mt) 18.731 16.284 – – 18.73 16.28 FF/DR
3PGE + Gold (g/t) 3.82 3.66 – – 3.8 3.7
Eland Platinum 73.99% UG/OC Ore (Mt) – 9.664 – 0.13 – 9.79 DR/PJG
3PGE + Gold (g/t) – 2.77 – 3.1 – 2.7
Total PGM (Mt) 19 26 – 0.1 19 26
3PGE + Gold (g/t) 3.82 3.33 – 3.10 3.82 3.32

Notes

Tonnages are quoted as million metric tonnes.

Grades are quoted as 3PGE + Au (Platinum, Palladium, Rhodium and Gold).

The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves.

Glencore Ferroalloys' platinum mining operations mine the platinum bearing UG2 Chromitite Layer of the Bushveld Complex, South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGEs), in the world.

The PGE ore at Mototolo Mine is mined from a shallow dipping (10o – 14o ) tabular ore-body referred to as the UG2 Chromitite Layer. The chromitite layer is mined underground using a trackless mechanised mining method on a bord and pillar mine layout design.

The Eland Platinum Mine has been put on care and maintenance. No Ore Reserves have been declared.

Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, reclassification and changes in the Mineral Resource and Ore Reserve tonnages and grades due to additional geological information gained through exploration.

The tonnage and grade estimations are made using geostatistical analysis of the exploration drill hole data as well as underground channel sample data, where available. From this analysis the most appropriate parameters are derived for the construction of block models for the various orebodies. Tonnages and grades are reported from these block models for each mine and project. Confidence limit curves are derived from fitted distributions and used to classify the Mineral Resources at various confidence levels.

Mototolo JV: The structural and grade block model was updated with exploration drill hole data drilled during the 2014 – 2015 reporting period.

The annual Mineral Resource estimation was conducted by Obsidian Consulting Services on behalf of Glencore.

The net change in the year on year Mineral Resources is -0.7Mt. This change is mainly due to the re-estimation and adjustment of the oxidised ore boundaries, and the change in the thickness of the middling waste parameters. The change is after the mining depletions have been discounted.

The Ore Reserve changed year on year on a net basis, after mining depletions have been discounted, by 4.9Mt. The change was mainly due to an increase in the Mineral Resource re-estimation, an increase in the mining-cut and an area mined that was not previously in reserve.

The LOM period for Mototolo Platinum Mine is 7.9 years based on the declared Ore Reserves. The LOM period based on all the Mineral Resources converted to Ore Reserves is 9.7 years. The Mining Right expiry date is 2039. The planned production rate is 210kt ROM per month.

Eland, Zilkaatsnek and Schietfontein: Eland, Zilkaatsnek and Schietfontein are contiguous Mining and Prospecting Right areas, targeting the same orebody and together constitute the Eland Platinum Mine.

The current Mineral Resource estimate contained in this report is based only on mining depletions during 2015. No exploration activities were carried out during the reporting period.

The Mineral Resources are constrained by lithological facies.

The year on year changes in the Mineral Resources is only due to mining depletion during the 2014 - 2015 reporting period.

The LOM for Eland Platinum Mine based on all the Mineral Resources converted to Ore Reserves is 48 years. The Mining Right expiry date is 2039.

  • PJG = Pieter-Jan Gräbe, Glencore Ferroalloys (SACNASP); overall responsibility for Mineral Resources.
  • FF = Frikkie Fensham, Glencore Ferroalloys, (SACNASP); Responsible for Mineral Resources and Ore Reserves.
  • DR = Dean Richards, Obsidian Consulting Services (SACNASP); responsible for data validation, construction of tonnage and grade block models and reporting of tonnage and grades from block model.
  • CL = Carina Lemmer, Geological & Geostatistical Services (SACNASP); responsible for geostatistical analysis of data and classification of Mineral Resources.

Silica Mineral Resources

Attributable Mining Measured Mineral
Resources		 Indicated Mineral
Resources		 Measured and
Indicated Resources		 Inferred Mineral
Resources		 Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Rietvly 79.5% OC (Mt) – – 23.81 24.34 23.81 24.34 – – CM
SiO2 (%) – – 91 91 91 91 – –

Silica Ore Reserves

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Rietvly 79.5% OC Ore (Mt) – – 2.15 2.38 2.15 2.38 CM
SiO2 (%) – – 91 91 91 91

Notes

Tonnages are quoted as thousand metric tonnes.

Grades are quoted as %SiO2.

Glencore Ferroalloys' silica mining operation is an open cast mining operation mining a massive quartzite deposit of the Magaliesberg Formation of the Pretoria Group, which is a subgroup of the Transvaal Super Group, South Africa. The Magaliesberg Formation forms a prominent quartzite ridge striking north-south along the Magaliesberg Mountain Range. The formation is a few hundred meters thick and dips towards the east at over 20o . The Rietvly quartzite orebody is a very pure quartzite with a silica content of over 90% SiO2.

The ore is mined through open cast mining methods and the ROM ore is crushed, washed and sized on site to produce a final sized and quality graded product. No silica cut-off grades are applied to the Mineral Resource estimation. The quartzite is mainly mined to supply the Glencore Ferroalloys furnaces with silica.

No significant changes have been recorded in the year on year Mineral Resource estimation.

No significant changes have been recorded in the year on year Ore Reserve estimation.

The Ore Reserves for Rietvly Silica Mine is based on a 5 year mining footprint with a production rate of 42.590kt ROM per month. The LOM period based on all the Mineral Resources converted to Ore Reserves is 39.6 years. The Mining Right expiry date is 2037.

Competent Person

  • PJG = Pieter-Jan Gräbe, Glencore Ferroalloys (SACNASP); overall responsibility for Mineral Resources and Ore Reserve.
  • CM = Mogomotsi Maputle, Glencore Ferroalloys (SACNASP); responsible for Mineral Resources and Ore Reserves.

Competent Person for Ore Reserve / Competent Person for Mineral Resource; where only one set of initials is listed, the same Competent Person is responsible for all categories quoted. Unless otherwise noted all Competent Persons are full time employees of Glencore plc subsidiaries.

Metals and Minerals Iron Ore

Iron Ore Mineral Resources

Measured Indicated Measured and Inferred
Name of operation Attributable
interest		 Mining
method		 Commodity Mineral Resources
31.12.15		 31.12.14 31.12.15 Mineral Resources
31.12.14		 31.12.15 Indicated Resources
31.12.14		 Mineral Resources 31.12.15 31.12.14 Competent
Person
El Aouj Mining Company S.A.
Guelb el Aouj 48.8% OC (Mt) 400 400 1,170 1,170 1,570 1,570 300 300 AM/SvdM
East Iron (%) 36 36 36 36 36 36 36 36
DTC wt (%) 45 45 45 45 45 45 45 45
DTC Iron (%) 69.8 69.8 69.2 69.2 69.3 69.3 69.5 69.5
Oxidised (Mt) 70 70 80 80 150 150 30 30 AM/SvdM
Iron (%) 34 34 35 35 35 35 35 35
Guelb el Aouj 48.8% (Mt) – – 185 185 185 185 615 615 AM/SvdM
Centre Iron (%) – – 34 34 34 34 35 35
DTC wt (%) – – 43 43 43 43 44 44
DTC Iron (%) – – 69.6 69.6 69.6 69.6 69.8 69.8
Oxidised (Mt) – – – – – – 45 45 AM/SvdM
Iron (%) – – – – – – 33 33
Bou Derga 48.8% (Mt) – – – – – – 510 510 AM/SvdM
Iron (%) – – – – – – 36 36
DTC wt (%) – – – – – – 43 43
DTC Iron (%) – – – – – – 69.7 69.7
Oxidised (Mt) – – – – – – 130 130 AM/SvdM
Iron (%) – – – – – – 35 35
Tintekrate 48.8% (Mt) – – – – – – 710 710 AM/SvdM
Iron (%) – – – – – – 36 36
DTC wt (%) – – – – – – 44 44
DTC Iron (%) – – – – – – 69.4 69.4
Oxidised (Mt) – – – – – – 180 180 AM/SvdM
Iron (%) – – – – – – 34 34
Total El Aouj Mining Company S.A. (Mt) 470 470 1,435 1,435 1,905 1,905 2,520 2,520
Iron (%) 36 36 36 36 36 36 35 35
Sphere Mauritania S.A.
Askaf North 87.8% OC (Mt) 200 200 160 160 360 360 45 45 AM/SvdM
Iron (%) 36 36 35 35 36 36 36 36
DTC wt (%) 47 47 45 45 46 46 45 45
DTC Iron (%) 69.8 69.8 69.4 69.4 69.6 69.6 69.2 69.2
Oxidised (Mt) 15 15 30 30 45 45 15 15 AM/SvdM
Iron (%) 35 35 35 35 35 35 35 35
Askaf Centre 87.8% OC (Mt) – – – – – – 95 95 AM/SvdM
Iron (%) – – – – – – 36 36
DTC wt (%) – – – – – – 42 42
DTC Iron (%) – – – – – – 69.9 69.9
Oxidised (Mt) – – – – – – 13 13 AM/SvdM
Iron (%) – – – – – – 37 37
Askaf East 87.8% OC (Mt) – – – – – – 70 70 AM/SvdM
Iron (%) – – – – – – 35 35
DTC wt (%) – – – – – – 42 42
DTC Iron (%) – – – – – – 70.3 70.3
Oxidised (Mt) – – – – – – 13 13 AM/SvdM
Iron (%) – – – – – – 31 31
Total Sphere Mauritania S.A. (Mt) 215 215 190 190 405 405 251 251
Iron (%) 36 36 35 35 36 36 35 35
Sphere Lebtheinia S.A.
Lebtheinia 97.5% (Mt) – – 2,180 2,180 2,180 2,180 350 350 AM/SvdM
Centre Iron (%) – – 32 32 32 32 32 32
DTC wt (%) – 27 27 27 27 27 27
–
DTC Iron (%) – – 68.6 68.6 68.6 68.6 68.1 68.1
LOZ (Mt) – – – – – – 210 210 AM/SvdM
Iron (%) – – – – – – 31 31
Total Sphere Lebtheinia S.A. (Mt) – – 2,180 2,180 2,180 2,180 560 560

Metals and Minerals Iron Ore

Attributable
Mining		 Measured
Mineral Resources		 Indicated
Mineral Resources		 Measured and
Indicated Resources		 Inferred
Mineral Resources		 Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Jumelles Limited
Zanaga 50% OC (Mt) 2,300 2,300 2,500 2,500 4,800 4,800 2,100 2,100 MT
Iron (%) 34 34 30 30 32 32 31 31

Iron Ore Reserves

Attributable Mining Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent
Name of operation interest method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
El Aouj Mining Company S.A.
Guelb el Aouj East 48.8% OC Ore (Mt) 380 370 551 385 931 755 JS
Iron (%) 35 35 35 35 35 35
DTC wt (%) 44 44 43 43 44 43
DTC Iron (%) 69.6 69.8 69.0 69.6 69.2 69.7
Sphere Mauritania S.A.
Askaf North 87.8% OC Ore (Mt) – 140 – 50 – 190 MC
Iron (%) – 36 – 34 – 35
DTC wt (%) – 46 – 44 – 45
DTC Iron (%) – 70 – 70 – 70
Oxidised Ore (Mt) – – – 42 – 42 MC
Iron (%) – – – 35 – 35
DTC wt (%) – – – 33 – 33
DTC Iron (%) – – – 69 – 69
Total Sphere Mauritania S.A. Ore (Mt) – 140 – 92 – 232
Iron (%) – 36 – 34 – 35
Jumelles Limited 50%
Zanaga OC Ore (Mt) 770 770 1,290 1,290 2,070 2,070 GB
Iron (%) 37 37 32 32 34 34

Notes

All Mineral Resources are considered suitable for open cut extraction.

DTC wt (%) – Davis Tube Concentrate mass recovery.

DTC Iron (%) – Davis Tube Concentrate assay %Fe.

Davis Tube test work has been conducted at a grind size of 95% passing 80 micron.

The rounding used for the values in this report reflects the confidence in the different levels of Mineral Resource and Ore Reserve classifications.

  • El Aouj Mining Company: Sphere Minerals holds a 50% interest in the El Aouj Mining Company through a Joint Venture arrangement with SNIM.
  • Guelb el Aouj East: The "Guelb" deposits are hosted in Banded Iron Formations (BIF) within the Dorsale Reguibat, an uplifted part of the Archaean West African Craton, which dominates the northern third of Mauritania's surface geology. Recrystallisation and aggregation of the magnetite grains in BIF has resulted in the partial to total destruction of the original banded (bedding) texture to produce the Guelb el Aouj magnetite-quartzite deposits. The geological sequence is overprinted by a reasonably uniform, approximately 80m thick weathered zone in which much of the magnetite has oxidised to hematite.

This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

The Guelb el Aouj East Ore Reserve Statement is based on a Feasibility Study and uses a 20% DTC wt% cut-off. No oxidised material has been included in the Ore Reserves.

The full release of this Mineral Resource and Ore Reserve update is available on the Australian Securities Exchange website (www.asx.com.au). Please search for stock code Sphere Minerals (SPH).

Guelb el Aouj Centre: The El Aouj Centre magnetite-quartzite (MQ) deposit is a highly metamorphosed banded iron formation (meta-BIF) unit that ranges in true thickness from 50m to over 200m. The geometry of the deposit is defined by a tight synformal structure with a sub-vertical axial plane. The synform outcrops over a strike length of about 2.4km. The thickest accumulation of magnetite-quartzite is found along the western limb of the synform, pinching out towards the east. A series of stacked recumbent isoclinal folds probably controlled the overall geometry of the deposit. The original bedding has been partially to completely obliterated by recrystallisation, resulting in a coarse-grained texture with aggregated magnetite grains. The weathered zone, though variable, has an average vertical thickness of approximately 40m. In this zone partial to complete oxidation of magnetite to hematite has occurred.

This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

Bou Derga: The Bou Derga deposit forms part of a larger scale synformal structure defined by an Archean magnetitequartzite (MQ) unit that ranges in true thickness from approximately 20m to 200m. The thicker parts of the deposit are considered to be a result of isoclinal folding. Drilling was restricted to the western fold closure. The deposit dips towards the northeast at about 60°. The deposit contains a number of internal waste bands (typically 5m to 50m thick) which have been modelled separately and excluded from the Mineral Resource estimation. A northwest-southeast trending fault displaces the mineralisation in the south-eastern part of the deposit.

This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

The Bou Derga Mineral Resource Statement has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition).

Tintekrate: The Tintekrate deposit is hosted within the Dorsale Reguibat, an uplifted part of the Archaean West African Craton, which dominates the northern third of Mauritania's surface geology. Recrystallisation and aggregation of the magnetite grains in the meta-banded iron formation (BIF) units has resulted in partial to total destruction of the original banded (bedding) texture to produce the Tintekrate and other similar magnetite-quartzite deposits. The Tintekrate deposit is a circular structure defined by a steep dipping MQ unit with dips of 50° to 80° (locally overturned) with true mineralised thicknesses of 100m to 150m on the western side of the structure to 50m to 100m on the eastern side. The weathered zone averages 70m to 75m vertical depth below natural surface and its base tends to mirror the natural surface profile. In this zone, magnetite has been partially to completely oxidised to hematite.

This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

  • Sphere Minerals: Glencore's interest in Sphere Minerals stands at 97.5% as at 31 December 2015.
  • Askaf North: Askaf North Deposit is an east-west striking synformal structure defined by a magnetite-quartzite (MQ) unit that ranges in true thickness from approximately 140m in the western hinge zone to approximately 30m along the eastern part of the southern limb. The synformal axis plunges at between 20° to 30° towards the east in the western part of the synform, and at about 35° to 45° towards the west at the eastern fold closure, producing a double plunging synform. A dolerite dyke has been emplaced along an east-west fault zone that displaces the northern part of the deposit in a dextral shear sense. The disruption and emplacement of the dolerite along the northern limb of the synform has not affected the quality of the mineralisation. The MQ unit represents a metamorphosed banded iron-formation (BIF). The precursor BIF was subjected to high-grade metamorphic conditions during the Archaean, which resulted in complete recrystallisation of the original fine-grained BIF. In most cases the primary textures have been destroyed by the recrystallisation. Coarse-grained (>1mm) MQ is produced as a result, with good Davis Tube liberation characteristics and concentrate grades at a liberation grind size of 95% passing 80 micron.

The Askaf North Mineral Resource Statement uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

The Ore Reserve estimate has been restated to reflect long term iron ore price assumptions that have been updated in response to a significant change in the outlook for the long term iron ore market. No other changes have been made to the technical scope or financial elements of the project, as originally outlined in the 2012 Feasibility Study and the 2014 FEED planning as part of the original commencement of the Askaf North project. Prices have been based on International Consensus pricing of iron ore on the international market, benchmarked to the long term IODEX62 price.

Changes from the previous statement are the result of a reevaluation of the economics of the mine following an update to the international long term price outlook for iron ore. Economics show no viable investment case based on the existing CAPEX and OPEX estimates and hence Ore Reserves have been reduced to zero.

The full release of this Mineral Resource and Ore Reserve update is available on the Australian Securities Exchange website (www.asx.com.au). Please search for stock code Sphere Minerals (SPH).

Askaf Centre: The Askaf Centre deposit comprises a northern body that is exposed over a strike length of 3.5km and a southern body that is exposed over a strike length of 1.7km. Both bodies form part of a regional scale antiformal structure and each body is also duplicated within itself by outcrop-scale tight isoclinal folding. The northern and southern bodies are separated and displaced in a dextral shear sense by a regional scale fault/fracture system. The northern body is generally sub-vertical striking roughly northwest-southeast. The magnetite-quartzite unit ranges in thickness from approximately 50m in the west to approximately 70m in the east, with the magnetite-quartzite mineralisation being thinnest in the steep dipping middle portion (±10 m). The multiple layers reported is the result of tight isoclinal folding. The southern body comprises an open synformal structure with an undulating sub-horizontal fold axis that plunges at approximately 25° towards the southwest at the southern part of the deposit. At this locality the mineralisation is still open-ended at depth. The two limbs of the synform are exposed over a strike length of approximately 1km. The northern part of the synform is tighter than is the case in the south, with the eastern limb almost being overturned in some places. Magnetitequartzite ranges in thickness from approximately 30m to 35m in the limbs to approximately 45m to 55m in the synformal keel as a result of structural thickening with thicknesses of up to 90m reported. The magnetite-quartzite unit is embedded within an Archaen granitic/gneiss sequence. The weathered zone which, though variable, has an average vertical thickness of approximately 40m and in this zone partial to complete oxidation of magnetite to hematite has occurred. Oxidation significantly reduces the Davis Tube mass recovery (wt%) in mineralised drill samples.

This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

Askaf East: The Askaf East deposit occupies the southern limb of an apparent east-west striking synformal structure defined by an Archaean magnetite-quartzite unit that ranges in true thickness from approximately 20m at the western end of the limb to approximately 140m in the central part of the limb. The hinge zone is at the eastern end of the deposit. The synformal axis plunges about 40° towards the west in the eastern part of the synform. The thickening of the sequence in the eastern part of the deposit is probably as a result of isoclinal folding within the sequence. The MQ

Metals and Minerals Iron Ore

unit is embedded within an Archaen granitic/gneiss sequence. The weathered zone, though variable, has an average vertical thickness of approximately 40m. Partial to complete oxidation of magnetite to hematite has occurred in this zone and this significantly reduces the Davis Tube mass recovery (wt%) in mineralised drill samples.

This resource uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

Lebtheinia: The magnetite-rich Banded Iron Formations (BIF) at Lebtheinia form part of the Archaean Lebzena Group. The BIF units in EL264 are exposed over a total strike length of approximately 24km, of which Lebtheinia Centre has a strike length of 11.5km. Parts of the main BIF units at Lebtheinia Centre deposit are covered by laterite and colluvium consisting of BIF fragments.

The magnetite-BIF at Lebtheinia Centre averages about 240m thick. The BIF is characterised by a well-defined banding pattern, with individual bands ("mesobands") averaging 5-10mm thick. Drilling shows that mineralisation extends to at least 400m vertically below natural surface and is open at depth. The deposit is intruded by a series of sub-vertical dolerite dykes, striking NE-SW to NNE-SSW. Lebtheinia Centre has a hanging wall of (variously) quartzite, amphibolite, rhyolite, clay/saprolite (altered amphibolite) and a footwall of quartzite or amphibolite.

The depth of weathering (oxidation) of the BIF averages around 50m. In the lower two thirds of the oxidised zone (the Lower Oxidised Zone, "LOZ") the degree of oxidation is less than in the more oxidised upper third.

The Lebtheinia Centre Mineral Resource Statement for fresh mineralisation uses 20% DTC wt% cut-off. For the LOZ unit the cut-off is 14 SI x 10-3 units of magnetic susceptibility.

The Lebtheinia Mineral Resource Statement has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition).

  • Jumelles: Following exercise of its call option in February 2011, Glencore owns 50% plus one share in Jumelles Limited being the ultimate parent company of MPD Congo SA the holder of the Zanaga exploration licences in the Republic of Congo.
  • Zanaga Project: Zanaga Project is owned 100% by Jumelles Limited. The Zanaga ELs are located within a north-south oriented greenstone belt which extends for over 47km in length, and vary between 0.5km and 3km in width. The mineralisation is hosted by metamorphosed volcanosedimentary itabirites, and is interbedded with amphibolites and mafic schists. The contact with the crystalline basement is typically faulted and sheared. The principal ore lithologies consist of itabirites, interbedded with basic lavas, which are later altered to amphibolites. Typically, the itabirites consist of layers of iron-rich and quartz rich meta-sediments, on a millimetre to centimetre scale. The orebody lithologies are crosscut by late intrusions and dolerite dykes, oriented northeast-southwest. The deposit comprises a sequence of weathering domains, which overlay an un-weathered protore comprising itabirite. The weathered sequence observed at Zanaga is typical of iron ore deposits, where the surficial material demonstrates enrichment in iron above the protore due to a mass reduction and associated leaching of the silicate layers.

The Mineral Resource is reported at a 0% Fe cut-off.

The Zanaga Mineral Resource Statement has been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition).

The Zanaga Project Ore Reserve Statement was prepared by SRK Consulting (UK) Limited as part of a Feasibility Study.

The full release of this Mineral Resource and Ore Reserve update is available on the Zanaga Iron website (www.zanagairon.com).

Competent Persons

AM = Alan Miller, Independent Consultant (MAusIMM (CP)), responsible for the construction of the geological block model, the grade interpolation and the Mineral Resource estimation (tonnage and grade) and classification.

JS = Jean-François St-Onge, Eng. formerly of BBA (OIQ).

  • GB = Gabor Bacsfalusi, SRK Consulting (UK) Limited (MAusIMM (CP)).
  • MC = Malcolm Cox, Independent Consultant (FAusIMM).
  • MT = Malcolm Titley, CSA Global (UK) Ltd (MAusIMM (CP)).
  • SvdM = Schalk van der Merwe, Independent Consultant (SACNSP), responsible for the geological interpretation for the Mineral Resource estimation (wireframe model), and the drill hole data set used in these resource estimation.

Australia Coal Resources – New South Wales

Measured
Coal Resources		 Indicated
Coal Resources		 Inferred
Coal Resources
Name of operation Attributable
interest		 Mining
Method		 Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Competent
Person
Oakbridge Group Thermal Coal (Mt) 1,184 1,183 673 683 1,030 1,040
Bulga Complex 68.3% OC/UG Thermal Coal (Mt) 1,150 1,150 600 610 800 800 CS
CV (kcal/kg) 5,800 5,800 5,750 5,750 5,600 5,650
Baal Bone 74.1% OC/UG Thermal Coal (Mt) 15 15 13 13 80 90 JMB
CV (kcal/kg) 5,800 5,800 6,350 6,400 5,000 5,150
Running Stream 78% OC/UG Thermal Coal (Mt) 19 18 60 60 150 150 JMB
CV (kcal/kg) 5,050 5,050 5,050 5,000 5,150 5,150
Macquarie Coal JV 80% Thermal Coal (Mt) 62 60 97 97 30 30
West Wallsend UG Thermal Coal (Mt) 60 60 5 5 – – CFP
CV (kcal/kg) 5,500 5,500 5,000 5,000 – –
Cardiff Borehole UG Thermal Coal (Mt) – – 12 12 30 30 CFP
CV (kcal/kg) – – 5,700 5,700 5,500 5,700
Teralba UG Thermal Coal (Mt) 2 – 80 80 – – CFP
CV (kcal/kg) 6,000 – 6,000 6,000 – –
Mitchells Flat 100% OC/UG Thermal Coal (Mt) – – 120 120 400 400 CFP
CV (kcal/kg) – – 5,300 5,300 5,000 5,000
Liddell 67.5% OC/UG Thermal Coal (Mt) 150 170 150 140 400 350 ST/DS
CV (kcal/kg) 6,200 6,100 5,950 5,900 6,150 5,900
Mount Owen Complex 100% Thermal Coal (Mt) 280 295 166 160 241 231
Mount Owen OC Thermal Coal (Mt) 140 150 90 90 150 150 DS
CV (kcal/kg) 6,250 6,150 6,100 6,050 6,050 6,000
Ravensworth East OC Thermal Coal (Mt) 65 65 26 30 1 1 DS
CV (kcal/kg) 5,700 5,550 5,700 5,550 5,750 5,800
Glendell OC Thermal Coal (Mt) 75 80 50 40 90 80 DS
CV (kcal/kg) 5,900 5,900 5,950 5,700 5,850 5,900
United 95% OC/UG Thermal Coal (Mt) 250 250 220 220 600 600 RMD
CV (kcal/kg) 6,200 6,200 6,200 6,100 5,850 6,000
Ulan Complex 90% Thermal Coal (Mt) 285 295 413 413 720 720
Ulan UGs UG Thermal Coal (Mt) 240 250 400 400 700 700 ML
CV (kcal/kg) 6,600 6,650 4,700 4,650 5,000 5,100
Ulan Waratah OC OC Thermal Coal (Mt) 45 45 13 13 20 20 ML
CV (kcal/kg) 4,950 4,950 5,200 5,200 4,900 4,900
Ravensworth Group Thermal Coal (Mt) 434 434 220 220 150 150
Narama 100% OC Thermal Coal (Mt) 24 24 0.1 – – – ST
CV (kcal/kg) 6,000 6,000 5,500 – – –
Ravensworth North 90% OC Thermal Coal (Mt) 410 410 220 220 150 150 ST
CV (kcal/kg) 6,000 6,000 6,100 6,100 5,700 5,700
Mangoola 100% OC/UG Thermal Coal (Mt) 140 170 250 65 1,200 1,100 ML
CV (kcal/kg) 5,150 5,150 4,650 4,950 4,300 4,600
Tahmoor Complex 100% Coking Coal (Mt) 65 65 340 340 250 250
Tahmoor North UG Coking Coal (Mt) 45 45 100 100 150 150 PM
Tahmoor South UG Coking Coal (Mt) 20 20 240 240 100 100 KP
Ravensworth UG 70% UG Thermal Coal (Mt) 320 320 220 220 250 250 PH
CV (kcal/kg) 5,800 5,800 5,400 5,400 5,350 5,350
Coal Resources New South Wales Coking/Thermal Coal (Mt) 3,170 3,242 2,869 2,678 5,271 5,121

Australia Coal Reserves – New South Wales

Coal Reserves Marketable
Coal Reserves		 Total Marketable
Coal Reserves
Attributable Mining Proved Probable Proved Probable Competent
Name of operation interest method Coal type 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.14 Person
Oakbridge Group 68.3% Thermal Coal (Mt) 300 38 200 25 225 230
Bulga OC OC Thermal Coal (Mt) 170 15 110 8 118 120 DL
CV (kcal/kg) 6,450 6,650 6,450 6,450
Bulga UG UG Thermal Coal (Mt) 130 23 90 17 107 110 MJ
CV (kcal/kg) 6,450 6,450 6,450 6,450
Macquarie Coal JV 80% Thermal Coal (Mt) 2 – 1 – 1 7
West Wallsend UG Thermal Coal (Mt) 2 – 1 – 1 7 AF
CV (kcal/kg) 5,500 5,500 5,950
Liddell 67.5% OC Thermal Coal (Mt) 27 15 17 10 27 32 NB
CV (kcal/kg) 6,700 6,700 6,700 6,700
Mount Owen Complex 100% Thermal Coal (Mt) 123 12 73 7 80 86
Mount Owen OC Thermal Coal (Mt) 80 11 45 6 51 54 STH
CV (kcal/kg) 6,450 6,550 6,450 6,500
Ravensworth East OC Thermal Coal (Mt) 16 1 10 1 11 12 STH
CV (kcal/kg) 6,400 6,400 6,400 6,400
Glendell OC Thermal Coal (Mt) 27 – 18 – 18 20 STH
CV (kcal/kg) 6,500 – 6,500 6,600
United 95% Thermal Coal (Mt) – 85 – 54 54 56
United OC OC Thermal Coal (Mt) – 50 – 30 30 32 STH
CV (kcal/kg) – 6,850 6,850 6,850
United A444 UG Thermal Coal (Mt) – 35 – 24 24 24 STH
CV (kcal/kg) – 6,850 6,850 6,850
Ulan Complex 90% Thermal Coal (Mt) 171 10 154 9 163 158
Ulan #3 UG UG Thermal Coal (Mt) 55 4 50 4 54 57 EMcG
CV (kcal/kg) 6,450 6,450 6,450 6,500
Ulan West UG UG Thermal Coal (Mt) 110 6 100 5 105 97 HE
CV (kcal/kg) 6,400 6,350 6,400 6,400
Ulan Waratah OC OC Thermal Coal (Mt) 6 0.4 4 0.2 4 4 DL
CV (kcal/kg) 5,000 5,000 5,000 5,000
Ravensworth Group Thermal Coal (Mt) 230 11 160 7 167 170
Ravensworth North 90% OC Thermal Coal (Mt) 230 11 160 7 167 170 CG
CV (kcal/kg) 6,250 6,300 6,250 6,350
Mangoola 100% OC Thermal Coal (Mt) 110 5 85 5 90 100 MW
CV (kcal/kg) 5,300 5,050 5,300 5,300
Tahmoor Complex 100% Coking/Thermal Coal (Mt) 20 40 14 30 44 46
Tahmoor North UG Coking Coal (Mt) 7 10 6 6 12 13 RO
Ash (%) 9.3 9.3 9.3 9.3
UG Thermal Coal (Mt) – – 0.2 1 1 1
CV (kcal/kg) 5,500 5,600 5,600 5,650
Tahmoor South UG Coking Coal (Mt) 13 30 7 21 28 29 RO
Ash (%) 9.5 9.5 9.5 9.5
UG Thermal Coal (Mt) – – 1 2 3 3
CV (kcal/kg) 5,850 5,850 5,850 5,850
Ravensworth UG 70% UG Thermal Coal (Mt) 40 – 28 – 28 28 KB
CV (kcal/kg) 6,600 – 6,600 6,950
Coal Reserves New South Wales Thermal Coal (Mt) 1,003 176 719 120 839 871
Coking Coal (Mt) 20 40 13 27 40 42

Note: Hunter Valley Semisoft coking coal is included in Thermal Coal (Mt)

Notes

The Australian Coal Resources and Reserves are contained within the Sydney Basin (New South Wales), the Bowen Basin (Queensland), the Surat Basin (Queensland) and the Galilee Basin (Queensland).

Coal Resource tonnes have been reported on an in situ moisture basis while Coal Reserves are reported on an as received moisture basis. Coal Resources are reported inclusive of those Coal Resources modified to produce Coal Reserves.

Coal Resources have been re-estimated in 2015 for inclusion in this summary table except where otherwise stated. Revision of the totals includes changes to classifications of Coal Resource status due to exploration, geological reinterpretation remodelling, changes to lease holdings and depletion by mining.

Thermal Coal Resource qualities are reported at an in situ moisture basis and Thermal Coal Reserve qualities are reported on a gross as received basis. Coal Resource qualities for coking coal are not reported, however Coking Coal Reserve qualities are reported on a gross as received basis.

Unless otherwise stated, the product yields used to estimate Marketable Coal Reserves are derived from a simulation package applied to sizing and washability data from each deposit, commonly the "Resource Mastor" software developed by A&B Mylec. The plant simulation package forecasts future plant performance based on historical plant data and exploration drill core analysis.

Changes and issues material to the estimation of Coal Resources and Reserves are noted below for specific projects. Reference to production changes between 31 December 2014 and 31 December 2015 are detailed for each producing mine site.

Tonnages are quoted as million metric tonnes.

Oakbridge Group

Bulga Complex: Overall Coal Resource decrease (-14.1Mt).

Bulga open cut: Coal Resource depletion due to mining (-8.5Mt), offset by Coal Resource increase (+5.4Mt) from a newly-granted mining lease.

Coal Reserves for Bulga Open Cut operations are sufficient to support a mine life of 17 years.

Bulga underground: Coal Resource depletion due to mining (-3.3Mt) and sterilisation (-2.2Mt) due to mine plan changes.

Tenements for the Bulga Complex expire between April 2015 and September 2036. Some tenements have expired and Renewal Applications have been submitted.

Baal Bone: Inferred Coal Resource decrease (-8Mt) as tonnes in the Lithgow Seam escarpment zone were removed due to surface lease constraints.

Extraction of the remaining Lithgow Seam and Irondale Seam resources expected to be by underground methods except where the Lithgow, Irondale and Glen Davis Seams are potentially extractable by open cut methods.

Tenements for Baal Bone expire between May 2017 and August 2032.

Running Stream: Running Stream is an undeveloped thermal coal project. No material change in Coal Resources.

Potential mining methods are open cut for the shallow Coal Resources (less than 60m depth of cover) and underground mining for Coal Resources in excess of 60m depth of cover.

Assessment Leases expire in May 2020. There is no mine plan current for this deposit.

Macquarie JV

West Wallsend: Coal Resource and Reserve depletion due to mining (-1.5Mt) and sterilisation/mine plan changes (-1.2Mt). Coal Reserves decrease due to reclassification of Reserve status (-6.1Mt).

Tenements for West Wallsend, Cardiff Borehole and Teralba expire between May 2007 and November 2035. Some tenements have expired and Renewal Applications have been submitted.

Cardiff Borehole: Coal Resources were not re-estimated in 2015. There is currently no mine plan at Cardiff Borehole.

Cardiff Borehole is a potential underground Coal Resource possibly accessible via the existing Teralba Colliery infrastructure.

Teralba: Coal Resources were not re-estimated in 2015.

Teralba was a longwall underground that ceased operations in 2001. The Coal Resource remains suitable for a potential underground mine.

Mitchells Flat: Coal Resource were not re-estimated in 2015.

Liddell Open Cut: Coal Resource increase due to geology model change (Inferred 40Mt) and reclassification of Coal Resources (Measured and Indicated 5.5Mt). Coal Resource and Reserve depletion due to mining (-5.9Mt).

Tenements for Liddell expire between October 2023 and November 2028. Coal Reserves for Liddell operations are sufficient to support a mine life of 7 years.

Mt Owen Complex

Mount Owen: Coal Resource and Reserve depletion due to mining (-7.4Mt).

Tenements for Mt Owen expire between November 2015 and July 2036. Some tenements have expired and Renewal Applications have been submitted.

Coal Reserves for Mt Owen Complex operations (including Mt Owen, Glendell and Ravensworth East) are sufficient to support a mine life of 14 years.

Ravensworth East: Coal Resource decrease due to geology model changes (-3.9Mt). Coal Resource depletion due to mining (-0.7Mt). Coal Reserve depletion due to mining (-1.5Mt) and dilution (-0.6Mt).

Tenements for Ravensworth East expire between July 2013 and November 2021. Some tenements have expired and Renewal Applications have been submitted.

Glendell: Coal Resource increase due to modelling changes (13Mt). Coal Resource depletion due to mining (-4.6Mt).

Increase in Indicated Coal Resource CV due to review of coal quality model (250kcal/kg). Coal Reserve depletion due to mining (-4.7Mt ROM) and dilution (-0.5Mt).

Tenements for Glendell expire between July 2015 and March 2032. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for

Glendell operations are sufficient to support a mine life of 6 years.

Integra: The assets associated with the Integra underground mine including coal tenements, land, equipment and infrastructure adjacent to the Mt Owen Complex were acquired from the Integra JV in December 2015. Open cut mine and coal preparation assets were concurrently acquired by others.

A full assessment and restatement of Coal Resources and Reserves will be completed during 2016.

Tenements for the area acquired by Glencore expire between March 2016 and November 2033.

United: No change in the Coal Resource estimate since 31 December 2012. Tenements for United expire between May 2016 and March 2033.

United A444 Underground: No change in the Coal Reserve estimate since 31 December 2012.

United Open Cut: No change in the Coal Reserve estimate since 31 December 2012.

Ulan Complex: Coal Resource decrease due to removal of sterilised mining section and reclassification (-5.2Mt). Underground Coal Resource depletion due to mining (-11.4mt).

Tenements for Ulan expire between February 2017 and January 2036.

Ulan Waratah open cut: No material changes to Coal Resources or Reserves since 31 December 2014.

Ulan West underground: Coal Reserve increase due to mine plan changes (18.4Mt). Coal Reserve depletion due to mining (-6.6Mt) and sterilisation (-0.1Mt).

Coal Reserves for Ulan West underground operations are sufficient to support a mine life of 14 years.

Ulan #3 underground: Coal Reserve depletion due to mining (-4.9Mt).

Coal Reserves for Ulan #3 underground operations are sufficient to support a mine life of 12 years.

Ravensworth Group

Narama: No material change to Coal Resources since 31 December 2014. Mining Operations in Narama ceased at the end of 2014 upon completion of the Life of Mine Plan.

Tenements for Narama expire between December 2023 and August 2036.

Ravensworth North: Coal Resource increase due to inclusion of new area within ML1669 (7Mt). Coal Resource and Reserve depletion due to mining (-8.6Mt).

Tenements for Ravensworth North expire between May 2014 and February 2034. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for Ravensworth North operations are sufficient to support a mine life of 19 years.

Mangoola: Coal Resource increase due to additional exploration drill data within Mangoola North (Measured and Indicated 162Mt, Inferred 167Mt). Coal Resource depletion due to mining (-10.8Mt).

Decrease in Indicated & Inferred Coal Resource CV due to the addition of lower quality tonnes within Mangoola North (-300kcal/kg).

Coal Reserve decrease due to modelling and mine plan changes (-4Mt). Coal Reserve depletion due to mining (-10.9Mt).

Tenements for Mangoola expire between November 2014 and November 2029. Some tenements have expired but Renewal Applications have been submitted. Coal Reserves for Mangoola operations are sufficient to support a mine life of 11 years.

Ravensworth Underground: No change in Coal Resource estimation since 31 December 2014. No material change in Coal Reserves since 31 December 2014.

Tenements for Ravensworth Underground expire between September 2012 and August 2036. Some tenements have expired and Renewal Applications have been submitted.

Tahmoor Complex:

Tahmoor North: No material change to Coal Resources since 31 December 2014. Coal Reserve depletion due to mining (-2.4Mt).

Tenements for Tahmoor North expire between August 2016 and March 2035. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for Tahmoor North underground operations are sufficient to support a mine life of 7 years.

Tahmoor South: No change in Coal Resource or Reserves since 31 December 2014.

Tenements for Tahmoor South expire in 2025.

  • AF = Alison Freeman, Senior Mining Engineer, West Wallsend Colliery (AusIMM).
  • CFP = Charles Parbury, Director, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • CG = Chris Gerard, Senior Mining Engineer, Ravensworth Open Cut (AusIMM).
  • CS = Christopher Smith, Geologist, Bulga Underground Operations (AusIMM).
  • DL = David Lennard, Xenith Consulting/Manager Hunter Valley (AusIMM).
  • DS = Daniel Saunders, Geologist, Glendell Mine (AusIMM);
  • EMcG = Edward McGonigle, Senior Mining Engineer Ulan Underground Mine (AusIMM).
  • HE = Heath Evans, Technical Services Manager, Ulan West Operations (AusIMM).
  • JMB = Janet Bartolo, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • KB = Konrad Bawelkiewicz, Mining Engineer/Analyst, Glencore Coal Assets Australia (AusIMM).
  • KP = Karol Patino, Senior Project Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • MJ = Marc Justen, Senior Mining Engineer, Bulga Underground Operations (AusIMM).
  • ML = Mark Laycock, Geology Superintendent, Glencore Coal NSW (AusIMM).
  • MW = Mark Williams, Technical Services Manager, Mangoola (AusIMM).
  • NB = Nicole Brook, General Manager Business Development & Technical Services, Glencore Coal Australia (AUSIMM).
  • PH = Paul Harrison, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • PM = Paul Maddocks, Senior Geotechnical Engineer, Tahmoor Coal (AusIMM).
  • RMD = Robert Dyson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • RO = Rachelle Oliver, Project Manager, Glencore Coal Assets (AusIMM).
  • STH = Shane Holmes, Technical Services Manager, Mt Owen (AusIMM).
  • ST = Shaun Tamplin, Principal Consultant, Tamplin Resources (AusIMM).

Australia Coal Resources – Queensland

Mining Measured
Coal Resources		 Indicated
Coal Resources		 Inferred
Coal Resources
Name of operation Attributable
interest		 Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Competent
Person
Oaky Creek 55% OC/UG Coking Coal (Mt) 260 260 350 340 80 70 RJH
Red Rock 75% OC/UG Coking/Thermal Coal (Mt) – – 150 150 150 150 RJH
CV (kcal/kg) 7,450 7,450 5,950 5,950 6,200 5,900
NCA 55% Coking/Thermal Coal (Mt) 513 478 542 467 1,018 880
Newlands, Suttor OC/UG Coking Coal (Mt) 13 13 7 12 3 10 JT/BL
Eastern (RCM) Thermal Coal (Mt) 330 330 120 110 400 290 JT/BL
CV (kcal/kg) 5,700 5,700 5,350 5,300 5,200 5,450
Wollombi (MCM) OC/UG Coking Coal (Mt) 11 11 27 27 70 70 JT
Thermal Coal (Mt) 19 19 60 60 90 90 JT
CV (kcal/kg) 4,800 4,800 4,650 4,650 4,550 4,550
Sarum OC/UG Coking Coal (Mt) 30 30 8 8 60 60 JT
Thermal Coal (Mt) – – 65 70 250 250 JT
CV (kcal/kg) – – 5,450 5,450 4,650 4,650
Collinsville OC/UG Coking Coal (Mt) 35 35 75 60 45 60 RJH
Thermal Coal (Mt) 75 40 180 120 100 50 RJH
CV (kcal/kg) 5,750 5,850 6,200 6,300 5,800 5,850
Cook 95% OC/UG Coking/Thermal Coal (Mt) – – 100 100 900 900 DP
CV (kcal/kg) – – 6,650 6,750 6,850 6,700
Rolleston 75% Thermal Coal (Mt) 225 235 215 210 370 370
Rolleston ML OC Thermal Coal (Mt) 140 150 45 50 20 20 JB
CV (kcal/kg) 5,750 5,800 5,550 5,550 5,450 5,500
Rolleston MDL & OC Thermal Coal (Mt) 85 85 170 160 350 350 JB
EPCs CV (kcal/kg) 5,700 5,700 5,550 5,550 5,550 5,600
Togara North 70% OC/UG Thermal Coal (Mt) 370 370 250 250 730 800 DP
CV (kcal/kg) 6,350 6,350 6,000 6,000 6,000 6,000
Wandoan 75% Thermal Coal (Mt) 1,450 1,450 1,700 1,700 4,400 4,400 RJ
CV (kcal/kg) 5,200 5,200 5,150 5,150 5,200 5,200
Milray 75% OC/UG Thermal Coal (Mt) – – – – 600 600 RJ
CV (kcal/kg) – – – – 4,900 4,900
Pentland 75% OC/UG Thermal Coal (Mt) 100 65 40 12 10 20 RJ
CV (kcal/kg) 4,400 4,450 4,050 4,100 4,100 4,300
Clermont 25% OC Thermal Coal (Mt) 110 150 26 5 11 – JT
CV (kcal/kg) 6,250 6,200 6,050 6,100 5,750 –
Coal Resources Queensland Coking/Thermal Coal (Mt) 3,028 3,008 3,373 3,234 8,269 8,190

Australia Coal Reserves – Queensland

Coking Coal (Mt) 102 62 67 41 108 164
Coal Reserves Queensland Thermal Coal (Mt) 1,132 412 894 326 1,220 1,376
CV (kcal/kg) 6,200 5,950 6,150 6,300
Clermont 25% OC Thermal Coal (Mt) 110 23 110 23 133 150 BM
CV (kcal/kg) 5,900 5,900 5,900 5,900
Wandoan 75% OC Thermal Coal (Mt) 780 240 560 170 730 740 PP
CV (kcal/kg) – 6,300 6,300 6,350
Togara North 70% OC Thermal Coal (Mt) – 28 – 28 28 160 PJ
CV (kcal/kg) 5,700 5,500 5,650 5,600
Rolleston 75% OC Thermal Coal (Mt) 170 60 170 60 230 240 RM
CV (kcal/kg) 5,950 5,850 5,900 6,300
OC Thermal Coal (Mt) 30 45 26 35 61 45 AC
Ash (%) 10.2 9.6 9.9 10
Collinsville OC OC Coking Coal (Mt) 15 17 10 12 22 30 AC
CV (kcal/kg) 6,300 – 6,300 6,300
Newlands UG UG Thermal Coal (Mt) 2 – 1 – 1 2 POG
CV (kcal/kg) 6,150 5,900 6,100 6,050
OC Thermal Coal (Mt) 40 16 27 10 37 39 NB
Ash (%) 9.1 9.6 9.3 9.3
Newlands OC OC Coking Coal (Mt) 14 8 10 5 15 16 NB
NCA 55% Ash (%)
Coking/Thermal Coal (Mt)		 101 86 –
74		 –
62		 –
136		 9.4
132
Oaky Acacia OC OC Coking Coal (Mt) – – – – – 39 LF
Ash (%) 9.4 9.4 9.4 9.4
Oaky North UG Coking Coal (Mt) 70 35 45 22 67 71 SW
Ash (%) 9.4 9.4 9.4 9.4
Oaky No. 1 UG Coking Coal (Mt) 3 2 2 2 4 8 SW
Oaky Creek 55% Coking Coal (Mt) 73 37 47 24 71 118
Name of operation interest method Coal type 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.14 Person
Attributable Mining Proved Probable Proved Probable Competent
Coal Reserves Marketable
Coal Reserves		 Total Marketable
Coal Reserves

Notes

Oaky Creek Complex

Oaky Creek: Coal Resource increase due to addition of exploration area (13.9Mt). Coal Resource depletion due to mining (-9.1Mt).

Tenements for the Oaky Creek Complex expire between March 2016 and August 2035. Some tenements have expired and Renewal Applications have been submitted.

Oaky Creek No. 1: Coal Reserve decrease due to economic and access driven mine plan changes (-1.8Mt). Coal Reserve depletion due to mining (-4.6Mt).

Coal Reserves are sufficient to support a mine life for 2-3 years.

Oaky Creek North: Coal Reserve depletion due to mining (-4.5Mt) and dilution (+0.2Mt).

Coal Reserves are sufficient to support a mine life for 19-20 years.

Oaky Acacia Open cut: Coal Reserve decrease due to a high level review of the project deeming the coal no longer eligible for Coal Reserve status (-49Mt ROM, -39Mt Marketable).

Red Rock: No change in the Coal Resource estimation since 31 December 2014.

Tenements for Red Rock expire between September 2018 and September 2020.

NCA

Newlands Open cut: Coal Reserve decrease (-3.7Mt ROM). Depletion due to mining (-6Mt), mining outside of 2014 reserve classified areas (2.3Mt).

Coal Reserves for Newlands Open Cut operations are sufficient to support a mine life of 8 years.

Newlands, Suttor, Eastern (RCM – Rangal Coal Measure): Newlands Coal Resource decrease due to minor model changes (-2.2Mt). Coal Resource depletion due to mining (-4.9Mt from 1 July 2014 to 31 December 2015) and sterilisation (-0.9Mt).

Eastern Creek Coal Resource increased due to the addition of high ash thermal Coal Resources (100.6Mt). Coal Resource depletion due to mining (-3Mt from 1 July 2014 to 31 December 2015) and dilution (+0.2Mt).

Suttor Creek Coal Resource depletion due to mining (-0.9Mt) and sterilisation (-0.4Mt).

Tenements for Newlands Complex expire between October 2011 and December 2034. Some tenements have expired and Renewal Applications have been submitted.

Wollombi (MCM – Moranbah Coal Measures): No change in the Coal Resource or Reserve estimation since 31 December 2012.

Newlands Underground: Newlands' Coal Reserve depletion due to mining (-1.6Mt) and dilution changes (0.3Mt).

Sarum: No change in the Coal Resource estimation since 31 December 2012. Reporting changes are due to rounding rule application only.

The Sarum Project is inclusive of the Sarum and Gattonvale deposits. Tenements at the Project expire between April 2016 and May 2018. An application for the grant of a new, singular, Mineral Development Licence that covers the entire project area has been lodged.

Collinsville: Coal Resource increase as a result of additional exploration data (Measured and Indicated 51.6Mt, Inferred 31.3Mt) and the inclusion of low volatile matter coal. Coal Resource and Reserve depletion due to mining (-4.6Mt).

Thermal Coal Reserve increase (17.3Mt) and Coking Coal Reserve decrease (-8Mt) due to mine planning review.

Tenements for Collinsville expire between September 2015 and September 2035. Renewal Application has been submitted for the tenement that has expired.

Cook (Blackrock): No change in Coal Resources since 31 December 2012. CVs have been updated following review.

Tenements for Cook expire between February 2020 and September 2028.

Rolleston: Coal Resource depletion due to mining (-12Mt). Coal Reserve decrease due to changes in LOM plan (-4.7Mt). Coal Reserve depletion due to mining (-10.8Mt).

Tenements for Rolleston expire between October 2009 and May 2043. Some tenements have expired and Renewal Applications have been submitted. Coal Reserves for Rolleston are sufficient to support a LOM of 17 years.

Togara North: Coal Resource decreased (-0.5Mt) Indicated and (-54Mt) Inferred from the Aries 1, Aries 3 and Orion seams due to the thin nature of the seams. Coal Reserve reduction (-129.4Mt Marketable) following mine planning review, resulting in changes to pit shell.

Tenements for Togara North expire between September 2018 and December 2046.

Wandoan: No change in the Coal Resource estimation since 31 December 2014. No changes to the Coal Reserve estimation since 31 December 2012.

Tenements for Wandoan expire between February 2016 and August 2020. Coal Reserves for Wandoan are sufficient to support a mine life of 32 years.

Milray: No change in Coal Resources since 31 December 2012.

Tenement for Milray expires in January 2021.

Pentland: Coal Resource increase due to data review and reinterpretation/re-correlation of coal seams (61Mt).

Tenements for Pentland expire between September 2016 and October 2019.

Clermont: Clermont Coal Resources estimated for the extraction of thermal coal via open cut methods.

Coal Resource decrease due to geology model changes and reclassification (-6.9Mt). Coal Resource depletion due to mining (-13Mt) and sterilisation (-0.1Mt). Coal Reserves decrease due to reclassification (-4.6Mt). Coal Reserves depletion due to mining (-12.8Mt).

Tenements for Clermont expire between April 2020 and November 2027. Coal Reserves at Clermont are sufficient to support a mine life for 11 years.

Competent Persons

  • AC = Andrew Connell, Principal Mining Engineer, Glencore Coal (AusIMM).
  • BL = Bronwyn Leonard, Senior Resource Geologist, Newlands Coal QLD (AusIMM).

BM = Ben Myall, Production Manager, Clermont (AusIMM).

  • DP = Doyle Pryde, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • JB = Jarrod Bennedick, Senior Mine Geologist, Rolleston (AusIMM).
  • JT = John Terrill, Principal Geologist, Glencore Coal QLD (AIG).
  • LF = Lindsay Ford, Project Manager, Glencore Coal QLD (AusIMM).
  • NB = Nicole Brook, General Manager Business Development & Technical Services, Glencore Coal Australia (AusIMM).
  • PJ = Paul Jones, Principal Mining Engineer, Glencore Coal (AusIMM).
  • POG = Paul O'Grady, Group Manager Mine Planning, Glencore Coal (AusIMM).
  • PP = Phil Price, Operation Manager Rolleston (AusIMM).
  • RJ = Rowan Johnson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • RJH = Richard Hingst, Resource Geologist, Glencore (AusIMM).
  • RM =Rob Molan, Senior Mining Engineer, Glencore Coal Qld (AusIMM).
  • SW = Steven Winter, Technical Services Manager, Glencore (AusIMM).

South Africa Coal Resources

Measured
Coal Resources		 Indicated
Coal Resources		 Inferred
Coal Resources		 Competent
Name of operation Attributable
interest		 Mining
Method		 Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Tweefontein 79.8% Thermal Coal (Mt) 940 940 65 65 40 40
Tweefontein North OC/UG Thermal Coal (Mt) 730 730 – – 10 10 KD
CV (kcal/kg) 5,250 5,250 – – 5,500 5,500
Tweefontein South OC/UG Thermal Coal (Mt) 210 210 65 65 30 30 KD
CV (kcal/kg) 5,350 5,350 4,350 4,350 4,600 4,600
Goedgevonden 74% OC/UG Thermal Coal (Mt) 540 530 28 25 – 1 KD
Complex CV (kcal/kg) 4,800 4,800 5,000 5,000 – 5,000
iMpunzi 79.8% Thermal Coal (Mt) 420 430 14 14 3 3
iMpunzi North OC Thermal Coal (Mt) 280 290 4 4 3 3 MS
CV (kcal/kg) 5,250 5,250 5,500 5,500 5,600 5,600
iMpunzi East OC Thermal Coal (Mt) 140 140 10 10 – – MS
CV (kcal/kg) 5,400 5,400 5,250 5,250 – –
Zonnebloem Project 100% OC Thermal Coal (Mt) 200 200 40 40 – – MS
CV (kcal/kg) 5,150 5,150 4,850 4,850 – –
Oogiesfontein 100% UG Thermal Coal (Mt) 60 60 20 20 – – MS
CV (kcal/kg) 4,950 4,950 4,950 4,950 – –
Paardekop 100% UG Thermal Coal (Mt) 130 130 640 640 90 90 MS
CV (kcal/kg) 5,350 5,350 5,400 5,400 5,350 5,350
Nooitgedacht 100% UG Thermal Coal (Mt) 22 22 40 40 6 6 MS
CV (kcal/kg) 4,850 4,850 4,850 4,850 4,850 4,850
Undeveloped 100% OC/UG Thermal Coal (Mt) – – 13 13 250 250 MS
Resources CV (kcal/kg) – – 4,750 4,750 5,400 5,400
Shanduka 49.99% Thermal Coal (Mt) 190 190 110 110 16 16
Graspan OC Thermal coal (Mt) 9 13 – – – – KD
CV (kcal/kg) 5,350 5,350 – – – –
Townlands OC Thermal coal (Mt) 15 15 – – – – KD
CV (kcal/kg) 4,850 4,850 – – – –
Steelcoal OC Thermal coal (Mt) 10 10 – – – – KD
CV (kcal/kg) 4,650 4,650 – – – –
Lakeside OC/UG Thermal coal (Mt) 5 5 – – – – KD
CV (kcal/kg) 4,500 4,500 – – – –
Leeuwfontein OC Thermal coal (Mt) 5 5 – – – – KD
CV (kcal/kg) 4,600 4,600 – – – –
Springlake UG/OC Thermal coal (Mt) 17 18 10 10 6 6 KD
CV (kcal/kg) 6,300 6,300 6,300 6,300 6,300 6,300
Argent OC Thermal coal (Mt) 29 29 – – – – MS
CV (kcal/kg) 5,100 5,100 – – – –
Springboklaagte* UG/OC Thermal coal (Mt) 86 86 100 100 10 10 MS
CV (kcal/kg) 4,500 4,500 4,500 4,500 4,500 4,500
Corobrik OC Thermal coal (Mt) 16 16 – – – – KD
CV (kcal/kg) 5,100 5,100 – – – –

* Springboklaagte is held as a Joint Venture between Shanduka and Umcebo, 100% of the Springboklaagte resources are included in the table above under Shanduka and excluded from Umcebo.

South Africa Coal Resources (continued)

Measured
Coal Resources		 Indicated
Coal Resources		 Inferred
Coal Resources
Name of operation Attributable
interest		 Mining
Method		 Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Competent
Person
Umcebo 43.66% Thermal Coal (Mt) 410 414 181 181 30 30
Middelkraal OC Thermal Coal (Mt) – 2 – – – – KD
CV (kcal/kg) – 4,550 – – – –
Kleinfontein OC Thermal Coal (Mt) – 1 – – – – KD
CV (kcal/kg) – 5,250 – – – –
Klippan OC/UG Thermal Coal (Mt) 4 4 1 1 – – KD
CV (kcal/kg) 5,800 5,800 5,800 5,800 – –
Kleinfontein Jicama Thermal Coal (Mt) 11 12 – – 10 10 KD
CV (kcal/kg) 5,200 5,200 – – 5,200 5,200
Wonderfontein OC/UG Thermal Coal (Mt) 100 100 – – – – KD
CV (kcal/kg) 5,350 5,350 – – – –
Norwesco OC Thermal Coal (Mt) 1 1 – – – – GC
CV (kcal/kg) 5,000 5,000 – – – –
Doornrug OC Thermal Coal (Mt) 4 4 – – – – GC
CV (kcal/kg) 5,000 5,000 – – – –
Hendrina UG Thermal Coal (Mt) 180 180 180 180 10 10 GC
CV (kcal/kg) 4,250 4,250 4,250 4,250 4,250 4,250
Belfast 21.83% UG Thermal Coal (Mt) 110 110 – – 10 10 GC
CV (kcal/kg) 5,100 5,100 – – 5,100 5,100
Wildfontein 23.26% UG Thermal Coal (Mt) 2 – – – – – AB
CV (kcal/kg) 5,000 – – – – –
Coal Resources South Africa Thermal Coal (Mt) 2,914 2,916 1,151 1,148 435 436

South Africa Coal Reserves

Extractable
Coal Reserves		 Saleable
Coal Reserves		 Total Saleable
Coal Reserves
Name of operation Attributable
interest		 Mining
method		 Coal type Proved
31.12.15		 Probable
31.12.15		 Proved
31.12.15		 Probable
31.12.15		 31.12.15 31.12.14 Competent
Person
Tweefontein 79.8% Thermal Coal (Mt) 190 40 127 22 149 168
Tweefontein UG/OC Thermal Coal (Mt) 180 40 120 22 142 155 TH
North Export (Mt) – – 80 14 94 118
CV (kcal/kg) – – 5,900 5,900 5,900 5,900
Domestic (Mt) – – 40 8 48 37
CV (kcal/kg) – – 5,100 5,100 5,100 5,100
Tweefontein UG/OC Thermal Coal (Mt) 9 0 7 – 7 13 TH
South Export (Mt) – – 7 – 7 11
CV (kcal/kg) – – 5,900 – 5,900 5,900
Domestic (Mt) – – – – – 2
CV (kcal/kg) – – – – – 5,100
Goedgevonden 74% OC Thermal Coal (Mt) 305 11 200 6 206 206 CT
Export (Mt) – – 85 4 89 90
CV (kcal/kg) – – 6,000 6,000 6,000 6,000
Export (Mt) – – 80 – 80 23
CV (kcal/kg) – – 5,100 5,100 5,100 5,100
Domestic (Mt) – – 35 2 37 93
CV (kcal/kg) – – 5,100 5,100 5,100 5,100
iMpunzi 79.8% Thermal Coal (Mt) 170 6 94 2 96 100
iMpunzi North OC Thermal Coal (Mt) 55 3 29 1 30 35 TH
Export (Mt) – – 26 1 27 29
CV (kcal/kg) – – 5,700 5,700 5,700 5,700
Domestic (Mt) – – 3 0 3 6
CV (kcal/kg) – – 5,100 5,100 5,100 5,100
iMpunzi East OC Thermal Coal (Mt) 115 3 65 1 66 65 TH
Export (Mt) – – 60 1 61 60
CV (kcal/kg) – – 5,700 5,700 5,700 5,700
Domestic (Mt) – – 5 – 5 5
CV (kcal/kg) – – 5,100 – 5,100 5,100
Zonnebloem 100% OC Thermal Coal (Mt) – 160 – 80 80 81 RR
Export (Mt) – – – 40 40 42
CV (kcal/kg) – – – 6,000 6,000 6,000
Domestic (Mt) – – – 40 40 39
CV (kcal/kg) – – – 5,100 5,100 5,100
Oogiesfontein 100% OC Thermal Coal (Mt) – 8 – 5 5 5 RR
Export (Mt) – – – 4 4 4
CV (kcal/kg) – – – 5,900 5,900 5,900
Domestic (Mt) – – – 2 2 2
CV (kcal/kg) – – – 5,100 5,100 5,100
Nooitgedacht 100% UG Thermal Coal (Mt) – 35 – 22 22 22 MS
Export (Mt) – – – 11 11 11
CV (kcal/kg) – – – 5,900 5,900 5,900
Domestic (Mt) – – – 11 11 11
CV (kcal/kg) – – – 5,100 5,100 5,100

South Africa Coal Reserves (continued)

Extractable
Coal Reserves		 Saleable
Coal Reserves		 Total Saleable
Coal Reserves
Attributable Mining Proved Probable Proved Probable Competent
Name of operation
Shanduka		 interest
49.99%		 method Coal type
Thermal Coal (Mt)		 31.12.15
39		 31.12.15
74		 31.12.15
26		 31.12.15
56		 31.12.15
82		 31.12.14
88		 Person
Graspan OC Thermal Coal (Mt) 2 – 1 – 1 4 MC
Domestic (Mt) – – 0.5 – 0.5 1
CV (kcal/kg) – – 5,900 – 5,900 5,900
Domestic (Mt) – – 0.7 – 0.7 3
CV (kcal/kg) – – 4,500 – 4,500 4,500
Townlands OC Thermal Coal (Mt) 6 – 3 – 3 3 MC
Export (Mt) – – 1 – 1 1
CV (kcal/kg) – – 5,800 – 5,800 5,800
Domestic (Mt) – – 2 – 2 2
CV (kcal/kg) – – 4,500 – 4,500 4,500
Steelcoal OC Thermal Coal (Mt) 4 – 4 – 4 4 MC
Domestic (Mt) – – – – – –
CV (kcal/kg) – – 5,800 – 5,800 5,800
Domestic (Mt) – – 4 – 4 4
CV (kcal/kg) – – 4,500 – 4,500 4,500
Springlake UG/OC Anthracite (Mt) 12 – 6 – 6 7 MC
Export (Mt) – – 5 – 5 6
CV (kcal/kg) – – 6,500 – 6,500 6,500
Domestic (Mt)
CV (kcal/kg) – – 1 – 1 2
OC Thermal Coal (Mt) – – 6,500 – 6,500 6,500
Argent Export (Mt) – 26 – 24 24 25 MC
CV (kcal/kg) – – – 19 19 –
– – – 4,500 4,500 –
Domestic (Mt) – – – 5 5 25
CV (kcal/kg) – – – 4,500 4,500 4,500
Springboklaagte* UG/OC Thermal Coal (Mt) – 48 – 33 33 33 MC
Export (Mt) – – – 18 18 18
CV (kcal/kg) – – – 6,000 6,000 6,000
Domestic (Mt) – – – 15 15 15
CV (kcal/kg) – – – 4,500 4,500 4,500
Corobrik OC Thermal Coal (Mt) 15 – 12 – 12 12 MC
Domestic (Mt) – – 4 – 4 4
CV (kcal/kg) – – 5,800 – 5,800 5,800
Domestic (Mt) – – 8 – 8 8
CV (kcal/kg) – – 4,500 – 4,500 4,500

* Springboklaagte is held as a Joint Venture between Shanduka and Umcebo, 100% of the Springboklaagte reserves are included in the table above under Shanduka and excluded from Umcebo.

South Africa Coal Reserves (continued)

Extractable
Coal Reserves		 Saleable
Coal Reserves		 Total Saleable
Coal Reserves
Attributable Mining Proved Probable Proved Probable Competent
Name of operation interest method Coal type 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.14 Person
Umcebo 43.66% Thermal Coal (Mt) 42 – 28 – 28 31
Middelkraal OC Thermal Coal (Mt) – – – – – 1 HG
Domestic (Mt) – – – – – 1
CV (kcal/kg) – – – – – 4,500
Kleinfontein OC Thermal Coal (Mt) – – – – – 0.2 HG
Jicama Export (Mt) – – – – – 0.1
CV (kcal/kg) – – – – – 6,000
Domestic (Mt) – – – – – 0.2
CV (kcal/kg) – – – – – 4,500
Wonderfontein OC/UG Thermal Coal (Mt) 42 – 28 – 28 30 HG
Export (Mt) – – 22 – 22 24
CV (kcal/kg) – – 5,700 – 5,700 5,700
Domestic (Mt) – – 6 – 6 6
CV (kcal/kg) – – 4,500 – 4,500 4,500
Norwesco OC Thermal Coal (Mt) 0.3 – 0.2 – 0.2 0.2 HG
Export (Mt) – – 0.2 – 0.2 0.2
CV (kcal/kg) – – 5,600 – 5,600 5,600
Domestic (Mt) – – 0.05 – 0.05 0.05
CV (kcal/kg) – – 4,500 – 4,500 4,500
Wildfontein 23.26% OC Thermal Coal (Mt) 2 – 2 – 2 – AB
Domestic (Mt) – – 2 – 2 –
CV (kcal/kg) – – 5,000 – 5,000 –
Coal Reserves South Africa Thermal Coal (Mt) 748 334 477 193 670 701

Notes

Valid prospecting rights have been issued for all the undeveloped Coal Resources. Some prospecting rights are being renewed, while application has been made for a number of mining rights.

Coal Resources have been re-estimated in 2015 for inclusion in this summary table except where otherwise stated. Revision of the totals includes changes to classifications of Coal Resource status due to exploration, geological reinterpretation and remodelling, and changes to lease holdings.

Coal Resources and Reserve qualities are reported at an air dried moisture basis and Export Saleable Coal Reserves are reported at a net as received moisture basis. Coal Resources are reported inclusive of Coal Reserves.

Product yields used to estimate Saleable Coal Reserves were derived from the "Limn Model" software. Inputs to this model are coal ply and in-seam dilution data, processed in the model. The model takes into account plant efficiencies to calculate practical yields. The model is calibrated to historical plant performance and where applicable, large diameter borehole data is used.

Changes and notes relevant to the estimation of Coal Resources and Reserves are listed below for specific projects. Changes reported are exclusive of production from 31 December 2014 to 31 December 2015.

Coal Resource and Reserve totals are rounded to appropriate levels of accuracy in accordance with the 2007 SAMREC Code (as amended July 2009) and the Glencore Coal rounding process. In summary, Measured and Indicated Coal Resources are rounded to 1 significant figure if less than 10Mt and 2 significant figures if greater than 10Mt; calorific values are rounded to the nearest 50kcal/kg.

Tweefontein Complex

Tweefontein North: Coal Resource depletion due to mining: (-13.2Mt). Updated information on the extent of historic UG mining in the now opencast areas (+10Mt). Coal Resource gain in Boschmans South East Pit after additional drilling and remodelling added resource blocks (+0.6Mt).

The Tweefontein North development includes all five seams present in the Vryheid Formation, however, only the No.1, No. 2, No. 4 and No. 5 seams form part of the mineable and economic Coal Resources. The resources have the potential to be extracted via both opencast truck and shovel or dragline, and underground board and pillar mining methods.

Coal Reserve depletion due to mining: (-12.2Mt). Loss of Coal Reserves due to the selective mining of the No. 4 seam in the OC, discarding the parting, which led to a drop in ROM, but an increase in yield (-5Mt). Loss of Coal Reserves on Vlaklaagte due to removal of currently uneconomic UG from the LOM: No. 1 seam (-13.6Mt), No. 4 seam (-5.7Mt), No. 5 seam (-10.7Mt), and No. 2 seam (-9Mt).

Mining Tenement for Tweefontein North expire in August 2020. Coal Reserves for Tweefontein North are sufficient to support a mine life of 19 years.

Tweefontein South: Depletion due to mining: (-2.5Mt).

Tweefontein South Complex is contained in the Tavistock and Klippoortje old order mining authorisations, situated within the Witbank Coalfield. The complex development includes all five seams, however, only the No.1, No. 2, No. 4 and No. 5 seams form part of the potentially mineable and economic Coal Resources.

Coal Reserve depletion due to mining: (-2.1Mt). Currently uneconomical reserves were taken out of the LOM plan including: No. 5 Seam OC pits (-1Mt), No. 2 Seam UG (-1Mt), Klippoortjie No. 4 Seam OC (-1.5Mt), No. 4 Seam SWC Development (-0.3Mt), and No. 4 Seam SWC Stooping (-1.7Mt), only No. 5 Seam Addcar Coal Reserves remaining.

Tenements for Tweefontein South expire between August 2024 and August 2040. Coal Reserves for Tweefontein South are sufficient to support a mine life of 10 years.

Goedgevonden: Coal Resource depletion due to mining (-16.8Mt). Additional No. 4 and No. 2 Seam resources next to river diversion included (+32.2Mt). No. 4 and No. 2 Seam resources around Pre-Karoo sterilised due to spoils (-1.9Mt). Coal losses due to geological structures (-1.2Mt). Evaluation of No. 2 Seam pillars resulted in a gain in pillar resources due to a decrease in the original extraction factor (+1.2Mt). Seam thickness and footprint gain due to drilling and remodelling (+4Mt).

The Goedgevonden Complex is situated within the Witbank coal field. Opencast dragline mining operations in the area are extracting the No. 2, No. 4 and No. 5 seams. The No. 3 seam is too thin for practical extraction and the No.1 seam is not considered an economic Coal Resource in the area.

Coal Reserve depletion due to mining (-11.7Mt). Alignment of mine planning assumptions to reflect optimised mining sequence and practice, resulting in a net loss of -5.3Mt ROM, but an increase of 0.4Mt Saleable Coal Reserves. An additional gain of 11.1Mt of saleable production was realised through fines beneficiation.

Tenements for Goedgevonden expire between February 2038 and May 2038. Coal Reserves for Goedgevonden are sufficient to support a mine life of 26 years.

iMpunzi

iMpunzi North Coal Resource depletion due to mining (-7.5Mt).

iMpunzi consists of iMpunzi Opencast (opencast dragline and truck and shovel operations) and iMpunzi Minipits (truck and shovel operations). The Opencast resources include the No.1, No. 2 and No. 4 seams, whilst the Minipit includes only the No. 4 seam.

Coal Reserve depletion due to mining: (-7.4Mt). Due to technical consideration the width of the South Pit barrier pillar was increased to 100 metres, resulting in a loss of Coal Reserves (-1.9Mt).

Mining Tenement for iMpunzi North expires in August 2040. Coal Reserves for iMpunzi North and East are sufficient to support a mine life of 25 years.

iMpunzi East: Coal Resource depletion due to mining (-0.8Mt).

A large portion of No.2 seam and a small area of No.4 seam have been previously mined via underground board and pillar method. The full seam is extracted through opencast mining methods – the lower zone of each seam was previously partially extracted by underground mining and the upper zone remains intact.

Depletion due to mining: 1Mt. Coal loss assumptions for the Rotary breaker was adjusted to reflect current practice, resulting in a decrease in ROM coal (marketable tonnes unaffected) (-2.4Mt). Change in the mining horizon definition resulted in a slight decrease in Coal Reserves but an increase in yield (-0.8Mt ROM).

Zonnebloem: The No. 1 and No. 2 seams are developed at Zonnebloem and will be extracted by opencast truck and shovel or dragline. Awaiting finalisation of the environmental licensing and permitting.

Mining tenement for Zonnebloem expires in September 2039. Coal Reserves for Zonnebloem are sufficient to support a mine life of 24 years.

Oogiesfontein: There have been no changes to the Coal Resource or Reserve. A Section 102 application has been lodged to incorporate Oogiesfontein into the Goedgevonden Complex.

Mining Tenement for Oogiesfontein expires in October 2018.

Paardekop: A mining right application was submitted in 2012. Awaiting approval of right and environmental licensing and permitting.

The only seam of economic importance in Paardekop project area is the Main seam which contains nearly 95% of the extractable coal. The seam has a mean thickness of 2.5m and is structurally almost flat. The upper zone is of poor CV whilst the lower zone has an average raw CV over 5,300kcal/kg. The project area comprises of underground resources in a single-seam deposit.

Undeveloped Coal Resources: The Coal Resource estimation includes:

Amersfoort (contained in the southern portion of the Ermelo Coalfield, Mpumalanga province southwest of Breyten). Estimation for Amersfoort is based on the C seam which is at a depth of 200m and a thickness of 2.5m;

Boschmanspoort (located in the Witbank Coalfield of Mpumalanga southeast of Middleburg). Estimation for Boschmanspoort is based on the No. 2 seam which dips towards the east, therefore allowing some potential opencast resources in the west; and

Trichardsfontein (located north of Trichardt). Estimation for Trichardsfontein is based on the No. 4 seam lower at approximately 90m depth. The seam has potential for underground extraction.

Mining right applications have been lodged for all the Undeveloped Coal Resources, awaiting mining rights, environmental licensing and permitting.

Shanduka: The remaining mine life for individual mining operations range from 3 to 12 years, based on the Coal Reserves except for the Springboklaagte deposit that extends Shanduka's expected life by approximately 20 to 25 years. Expiry date of relevant mining/concession licenses are different for each mine, ranging from October 2015 to March 2027 in respect of Graspan, Townlands, Steelcoal, Lakeside and Springlake. Leeuwfontein remains an 'old order right' or mining license, with applications pending for conversion into a 'new order right' or mining license (only upon conversion will the expiry date be known). Springboklaagte is a prospecting right, which is granted for 5 year periods and are renewable for a further 3 year period. The main prospecting right expired on 3 August 2011 and an application for the renewal of the prospecting right was lodged on 3 June 2011. Further to this an application for a mining right was also lodged in April 2011. Argent had a prospecting right valid until 29 June 2013. An application for a mining right was also lodged in December 2012.

Springboklaagte is held as a Joint Venture between Shanduka and Umcebo, 100% of the Springboklaagte Coal Reserves and Resources is included in the table above.

Graspan: Coal Resource depletion due to mining (-3.9Mt). Losses due to geological disturbances including wash-outs, pinching seams and geological structures (-0.4Mt).

Coal Reserve depletion due to mining (-3.6Mt).

Townlands: No mining was conducted at Townlands and the reserves will be reported in future in the Graspan Coal Resources and Reserves.

Steelcoal: No change in Coal Resources or Reserves, and the reserves have been earmarked as a future expansion to Graspan.

Lakeside and Leeuwfontein: No change to Coal Resources or Reserves, mines are on care and maintenance.

Springlake: Coal Resource depletion due to mining (-0.98Mt).

Coal Reserve depletion due to mining (-0.96Mt). Mine layout changes implemented at Clive Shaft resulted in a decrease in Coal Reserves (-0.2Mt).

Argent: There have been no changes to the Coal Resource estimate, awaiting mining right approval, and environmental licensing and permitting.

Decrease in Saleable Coal Reserves due to product optimization (-1.4Mt).

Springboklaagte: There have been no changes to the Coal Resource estimate, awaiting mining right approval, and environmental licensing and permitting.

Corobrik: The resource forms a natural extension to Graspan Colliery. There have been no changes to the Coal Resource estimate, awaiting mining right approval, environmental licensing and permitting.

  • Optimum: Is currently undergoing a sale process with completion effective 1 January 2016 (subject to certain conditions precedent). Coal Resources and Reserves have been removed from this report.
  • Umcebo: The remaining mine life of the individual mining operations range up to 10 years. Expiry date of relevant mining/concession licenses are different for each mine, ranging from October 2015 to December 2021 in respect of Middelkraal, Kleinfontein, Klippan and Doornrug. Norwesco mining right lapsed on 28 September 2011; however a renewal has been lodged. Wonderfontein had a mining right granted in February 2012.

Middelkraal: Coal Resource depletion due to mining: (-0.8Mt). Only un-mineable pillar (-0.2Mt) and sterilised coal in berms (-0.6Mt) are remaining.

Depletion due to mining: (-0.9Mt). Coal Reserve depleted, and only un-mineable pillar remaining (-0.19Mt).

Kleinfontein: Coal Resource depleted and only unrecoverable pillar remaining (0.5Mt). Removed from Coal Resources.

Klippan: The mine is currently closed with 4.2Mt of Coal Resources remaining.

Kleinfontein Jicama: Mining commenced in 2015. Coal Resource depletion due to mining: (-0.66Mt).

Coal Reserve depletion due to mining: (-0.5Mt). Coal Reserve now totally depleted.

Wonderfontein: Coal Resource depletion due to mining (-2.7Mt).

Norwesco, Doornrug, Hendrina and Belfast: future projects and there are no changes in Coal Resources or Reserves for the current reporting period.

Hlagisa: Wildfontein is held under a Joint Venture agreement between Umcebo and Hlagisa. Wildfontein is an opencast truck and shovel operation and has a 2 year LOM.

  • AB = Allen Bullock; N.H.Dip. Coal Mining; Pr Sc Nat (400059/98); Director, Hlagisa Mining (Pty) Ltd.
  • CT = Chris Theart; ND, NHD Metal Mining; SAIMM (706513); Group Mining Engineer, Glencore Coal South Africa.
  • GC = Gerrit Cronjé, BSc Hons Geology; Pr Sc Nat 400128/86, employed by Shanduka Coal (Pty) Ltd.545.
  • HC = Hlayiseka Chauke; B Tech Mining Engineering; MCC; employed by Optimum Coal (Pty) Ltd.
  • HG = Hugo Grobler B Engineering Mining; MSc Engineering Mining; MCC, SAIMM; employed by Shanduka Coal (Pty) Ltd.
  • KD = Karin van Deventer; (MSc Geochemistry; Pr Sc Nat 400705/15, employed by Glencore Coal South Africa.
  • MC = Mark Cunney, BEng Hons Mining Engineering, MCC; Pr Cert Eng 2007 0114, employed by Shanduka Coal (Pty) Ltd.
  • MS = Marius Smith; B Sc. Honours Geology; MBA; Pr Sc Nat 400075/03; Group Coal Geologist, Glencore Coal South Africa.
  • RR = Rohan Roach; B Com; B Tech Mine Engineering; Coal Mine Managers Certificate of Competency, Metalliferous Mine Managers Certificate of Competency; SAIMM, ECSA; Group Mining Engineer, Glencore Coal South Africa.
  • TH = Trevor Howard; B Eng. Mining; Coal Mine Managers Certificate of Competency; SAIMM (701062); Group Mining Engineer, Glencore Coal South Africa.
  • WH = Willem Heyneke, B Tech Mining Engineering, MCC; Pr Cert Eng 2008 900 44, who is employed by subsidiary company of Optimum Coal (Pty) Ltd.

Colombia Coal Resources and Reserves

Prodeco Coal Resources

Coal Resources Prodeco Thermal Coal (Mt) 185 200 220 240 70 70
CV (kcal/kg) 7,100 7,100 7,050 7,060 – –
La Jagua 100% OC Thermal Coal (Mt) 75 90 30 20 – – KJW
CV (kcal/kg) 6,300 6,330 6,200 6,270 6,250 6,200
Calenturitas 100% OC Thermal Coal (Mt) 110 110 190 220 70 70 KJW
Name of operation Attributable
interest		 Mining
Method		 Commodity 31.12.15 Measured
Coal Resources
31.12.14		 31.12.15 Indicated
Coal Resources
31.12.14		 Inferred
Coal Resources
31.12.15 31.12.14		 Competent
Person

Prodeco Coal Reserves

Coal Reserves Marketable
Coal Reserves		 Total Marketable
Coal Reserves
Name of operation Attributable
interest		 Mining
method		 Coal type Proved
31.12.15		 Probable
31.12.15		 Proved
31.12.15		 Probable
31.12.15		 31.12.15 31.12.14 Competent
Person
Calenturitas 100% OC Thermal Coal (Mt) 55 55 55 55 110 170 GL
CV (kcal/kg) 6,200 6,000 6,200 6,000 6,100 6,150
La Jagua 100% OC Thermal Coal (Mt) 65 25 65 25 90 100 GL
CV (kcal/kg) 6,800 6,700 6,800 6,700 6,750 6,750
Coal Reserves Prodeco Thermal Coal (Mt) 120 80 120 80 200 270

Cerrejón Coal Resources

Attributable Mining Measured
Coal Resources		 Indicated
Coal Resources		 Inferred
Coal Resources		 Competent
Name of operation interest Method Commodity 31.12.15 31.12.14 31.12.15 31.12.14 31.12.15 31.12.14 Person
Carbones del 33.3% OC Thermal Coal (Mt) 2,950 3,000 1,150 1,100 800 700 GH
Cerrejón CV (kcal/kg) 6,550 6,600 6,550 6,550 6,550 6,550

Cerrejón Coal Reserves

Extractable
Coal Reserves		 Saleable
Coal Reserves		 Total Saleable
Coal Reserves
Attributable Mining Proved Probable Proved Probable Competent
Name of operation
interest
method		 Coal type 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.14 Person
Carbones del 33.3% OC Thermal Coal (Mt) 530 100 520 90 610 650 GH
Cerrejón CV (kcal/kg) 6,150 6,200 6,100 6,100 6,100 6,200

Notes

Glencore's Colombian coal interests are located in two different coal provinces; La Guajira Department (Cerrejón) and Cesar Department (Prodeco).

Coal Reserves are reported on a ROM moisture basis. Coal Resources are reported on an in situ moisture basis.

Coal Resource and Coal Reserve estimates tabulated above are stated on a total mine basis as at 31 December 2015.

Coal Resource qualities are reported at an in situ moisture basis and Coal Reserve qualities are reported at a gross as received basis.

Changes and issues material to the estimation of Coal Resources and Reserves are noted below for specific projects. Reference to production changes between 31 December 2014 and 31 December 2015 are summarised for each producing mine site.

Prodeco:

Calenturitas: The geological model was updated with new exploration and mining data that resulted in a decrease of coal seam thickness near the identified fault in Sector A and within the steep dip areas of Sector A and the northern area of Sector B (-9.0Mt Indicated and -7.0Mt Inferred Coal Resources). A small decrease of 0.3Mt due to update of base of weathering using new exploration and in-pit data. Indicated Coal Resources for seams C195-C120 in Sector CD were removed (-8.7Mt) due to low potential for mining these thin seams. Additional Inferred Coal Resources (+6Mt) reported for seams C155-C130 in the south of Sector A.

Marketable Coal Reserves depletion due to mining (-11.0Mt). Coal Reserves sterilisation in steep dip areas (-3.0Mt). Coal Reserves have been decreased due to economic assessment (-43.0Mt).

Remaining mine life expected to be 13 years. Expiry date of relevant mining/concession licenses: 2035.

La Jagua: Historical records and a recent drill hole provided additional data to rebuild the surface under a spoil pile in the eastern flank of the syncline within the Carbones de La Jagua (CDJ) area. Updated topography limiting coal seams were found to be higher than previously modelled (+0.8Mt). Base of weathering updated using recent drill hole data and review of weathering horizon (+0.3Mt). Area in the west flank and CDJ leases 0.4Mt of coal mainly in seam M45 was sterilised for pit stability. Geological model update, including latest drill hole data and pit mapping, led to a reclassification of Measured (-15Mt) and Indicated (+10Mt) Coal Resources, mostly in the deepest part of the basin below Cerro de Piedra.

Marketable Coal Reserves depletion due to mining was (-7.0Mt). Seam 45 in south-eastern corner of the deposit is now included based on new drilling in the area (1.1Mt).

Remaining mine life expected to be 13 years. Expiry date of relevant mining/concession licenses: Carbones El Tesoro

(CET) and Carbones de La Jagua (CDJ) expire between 2027 and 2038.

Some tenements have expired and Renewal Applications have been submitted.

Cerrejón: Coal Resources are reported as gross tonnes in situ (GTIS) with no geological losses applied. The Coal Resources occur within a geoshell constrained by the horizontal and vertical distribution of data within the drill hole (data limits) envelope. Coal Resources include coal for which the continuity, quality and mineability are established but are outside the current LOM plan. There are approximately 220Mt of coal that occurs within the geoshell and under mining restricted areas within 1km of major towns. This coal has not been included in the Coal Resources in 2015. These Coal Resources comply with current and foreseen mining and marketing criteria and have economic potential.

Coal Reserves have reduced by 40Mt due principally to depletion by mining (-33.1Mt).

The estimates of Coal Resources and Reserves presented in this table for Cerrejón have been prepared in accordance with the 2007 SAMREC Code (South African Code for Reporting of Mineral Resources and Mineral Reserves) (as amended July 2009).

  • GL = Guillermo Leon, Senior Mining Engineer, Prodeco, (AusIMM).
  • KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd (AusIMM).
  • GH = German Hernandez; BSc, BHPBilliton Certificate of Competent Person; GSSA; APS Geology Superintendent, Carbones del Cerrejón.

Canada Coal Resources

Coal Resources Canada Coking/Thermal Coal (Mt) 45 45 113 113 130 130
Sukunka 75% UG/OC Coking Coal (Mt) 45 45 100 100 40 40 KJW
CV (kcal/kg) – – 6,100 6,100 6,100 6,100
Suska 75% OC Coking/Thermal Coal (Mt) – – 13 13 90 90 KJW
Name of operation Attributable
interest		 Mining
Method		 Commodity 31.12.15 Measured
Coal Resources
31.12.14		 31.12.15 Indicated
Coal Resources
31.12.14		 Inferred
Coal Resources
31.12.15 31.12.14		 Qualified
Person

Notes

The Canadian Coal Resources and Reserves occur in the Peace River area of the Province of British Columbia (Sukunka, Suska). Additional tenements adjacent to these Peace River projects are targeted for exploration. These include tenement areas identified as Central South, South Cirque and other tenements that extend north and south of the Pine River.

Coal Resource tonnage and quality are reported at an in situ moisture basis. Coal Resources are reported in accordance with the JORC Code 2012 edition.

There has been no coal mined from the Glencore Canadian coal assets in 2015.

  • Suska: Coal Resources have not been re-estimated since 2013.
  • Sukunka: Very minor Coal Resource changes resulting from 2015 recent exploration. Improved coal seam correlations and an updated geological model led to increased resource confidence in some parts in the north of the deposit. Coal Resources reported include seams from Upper and Lower Members of the Gething Formation.

Open cut and underground mining studies are in progress. No Coal Reserves are reported, at the end of December 2015.

Competent Persons

KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd (AusIMM).

Energy Products Oil

Net Reserves (Proven and Probable)1

Working Interest Basis
Equatorial Guinea Chad Cameroon Total
Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Combined
mmboe
31 December 2014 25 – 150 – – – 175 – 175
Revisions – – 1 – – – 1 – 1
Acquisitions/Divestments – – – – – – – – –
Discoveries – – 21 – – – 21 – 21
Production (6) – (6) – – – (12) – (12)
31 December 2015 19 – 166 – – – 185 – 185

Net Contingent Resources (2C)1

Working Interest Basis
Equatorial Guinea Chad Cameroon Total
Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Combined
mmboe
31 December 2014 23 562 9 – 53 714 85 1,276 305
Revisions – – – – – – – – –
Acquisitions/Divestments – – – – (6) (119) (6) (119) (26)
Discoveries – – – – – – – – –
31 December 2015 23 562 9 – 47 595 79 1,157 278

1 "Net" Reserves or Resources are equivalent to Glencore's working interest in the asset/property.

Notes

Equatorial Guinea: Equatorial Guinea Reserves and Contingent Resources consist of Block O (Glencore 25% working interest ("WI")) and Block I (Glencore 23.75% WI) reserves and resources.

The Aseng field (Block I, 23.75% WI) came on stream in November 2011. The field is produced from subsea wells tied back to an FPSO. Average 2015 gross production was 33,600 barrels per day. Aseng has an anticipated 11 year life from first oil.

The Alen field (95% Block O, 25% working interest and 5% Block I, 23.75% working interest) came on stream in May 2013. Gross production in 2015 averaged 29,400 barrels per day. The field is produced from subsea wells tied back to a production platform where condensate is stripped and transported to the Aseng FPSO via a subsea pipeline. The produced gas is re-injected into the field. Alen has an anticipated 8 year life from first oil.

The Aseng and Alen fields have a 25 year exploitation term from approval of a plan of development.

Reserves for Equatorial Guinea were independently assessed by Gaffney, Cline & Associates (GCA), have been prepared in accordance with the Petroleum Resources Management System (PRMS) and have been extracted without material adjustment from the GCA report dated 31 December 2015. Contingent Resources are based on Glencore and GCA estimates and have been prepared in accordance with PRMS.

Chad: Following on from the 2014 acquisition of Caracal, Glencore holds a majority WI in the DOB/DOI, Doseo/Borogop and DOH production sharing contracts. Glencore now holds an 85% WI in the Badila and Mangara oil field Exclusive Exploitation Authorisations (EXAs). In addition McDaniel have classified the Kibea, Baouda East and Krim discovered fields as reserves in which Glencore has a 75% WI.

The Badila field is an onshore development which came on stream in September 2013. Oil is transported through an export pipeline to the Chad/Cameroon export pipeline (Totco/Cotco pipeline) with off-take at the Marine Terminal in Cameroon. Average gross 2015 production stands at 13,300 barrels per day. Badila has an anticipated 13 year life from first oil.

The Mangara field is an onshore development that has been producing since late December 2014. Gross production in 2015 averaged 7,900 barrels per day. Oil is transported through an export pipeline to the Totco/Cotco pipeline with off-take at the Marine Terminal in Cameroon. Mangara has an anticipated 13 year life from first oil.

The EXA's have a 25 year exploitation term after the authorisation of the EXA.

Reserves for Chad were independently assessed by McDaniel & Associates (McDaniel), have been prepared in accordance with PRMS and have been extracted without material adjustment from the McDaniel report dated 31 December 2015. Contingent Resources are based on Glencore estimates and have been prepared in accordance with PRMS.

Cameroon: Glencore holds 100% WI of the Bolongo license and 75% WI of the Matanda license (following a 15% divestment in Q4 2015). Technical and development studies are underway on the Bolongo license.

There are no Reserves currently attributable to Cameroon. Contingent Resources are based on Glencore estimates and have been prepared in accordance with PRMS.

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