2020 Payments to Governments Report

Payments to Governments Report 2020 About Glencore

We are one of the world’s largest natural resource companies. As a global producer and marketer of commodities, we are uniquely diversified by geography, products and activities. Integrating our marketing and industrial businesses sets us apart from most of our competitors in creating an enhanced entrepreneurial focus on value generation.

We have some 150 mining and metallurgical sites and oil production assets in 35 countries and employ 135,000 people. Our business activities make a significant contribution to the national and local economies in which we operate. We believe that our presence can deliver long-term, sustainable benefits to our host countries.

Our culture We fulfil our purpose and deliver on our strategy in a manner that reflects our values of safety, integrity, responsibility, openness, simplicity and entrepreneurialism. Only by actively living and breathing these values are we able to ensure our culture is conducive to fulfilling our purpose and delivering on our strategy. Our purpose Responsibly sourcing the commodities that advance everyday life. Our strategy To sustainably grow total shareholder returns while maintaining a strong investment grade rating and acting as a responsible operator. Our values Our values reflect our purpose, our priorities and the beliefs by which we conduct ourselves. They define what it means to work at Glencore, regardless of location or role. They are the heart of our culture and the way we do business.

Safety Integrity Responsibility

We never compromise on safety. We have the courage to do what’s We take responsibility for our actions. We look out for one another and right, even when it’s hard. We do We talk and listen to others to stop work if it’s not safe what we say and treat each other understand what they expect from us. fairly and with respect We work to improve our commercial, social and environmental performance

Openness Simplicity Entrepreneurialism

We’re honest and straightforward when We work efficiently and focus on We encourage new ideas and quickly we communicate. We push ourselves what’s important. We avoid unnecessary adapt to change. We’re always looking to improve by sharing information and complexity and look for simple, for new opportunities to create value and encouraging dialogue and feedback pragmatic solutions find better and safer ways of working Contents

Chief Financial Officer’s introduction 2 Our approach to tax and transparency 4 Our contribution 8 Our payments to governments 18 Extractive Industries Transparency Initiative 30 Material advances and loans repayable with product 38 About this report 39 Appendix One – Group Tax Policy 40 Appendix Two – Detailed Country Disclosures 42 Glossary 44 Important notice 45 Further information 46

Overview of payments made to governments in 2020, in line with the EU reporting directive Amounts in US$ ’000

● Australia $709,946 ● Bolivia $6,303 ● Cameroon $18,960 ● Canada $40,540 ● Chad $16,669 ● Chile $239,489 ● Colombia $20,821 ● Democratic Republic of Congo $255,012 ● Equatorial Guinea $43,580 ● Kazakhstan $365,854 ● Peru $271,211 ● South Africa $77,267 ● Zambia $16,556

Glencore Payments to Governments Report 2020 1 Chief Financial Officer’s introduction

During 2020, our total payments to governments were around $5.8 billion.

the communities living around our operations. We have been an active supporter of the Extractive Industries Transparency Initiative (EITI) since 2011. We actively promote its principles of transparency and accountability and engage with the EITI at both local and Group levels. This payments to governments report includes our disclosure on a country- by-country and project-by-project basis, our approach to tax transparency and our EITI commodity trading disclosures. In addition, we have included a short overview of our contributions and activities in the countries where our payments to governments, as identified by the reporting requirements of the EU directive, are $100 million or higher, as well as Colombia, which continues to be a country of interest to a number of our stakeholders.

I am pleased to introduce our sixth During 2020, our total payments to We are aware of increasing Payments to Governments report that governments, were around $5.8 billion, stakeholder interest in material loans aligns with the reporting requirements while $2.1 billion is reported pursuant repayable with product (also referred of Chapter 10 of the EU Accounting to the EU Accounting Directive to as ‘resource-backed loans’) and are Directive. extractive industries’ reporting supportive of the drive towards greater requirements, including payments transparency in this area. We have Our corporate purpose is to relating to our ownership interest in disclosed relevant information on our responsibly source the commodities the Antamina, Cerrejón and Collahuasi resource backed loans, to the extent that advance everyday life. For joint ventures. This compares to a 2019 that the information is not Glencore, this commitment includes total of $7.7 billion and $4 billion under commercially sensitive or confidential. implementing high standards of the EU reporting requirements. The corporate governance and To further demonstrate our reduction reflects a decrease in transparency. We welcome fiscal commitment towards increased production due to the global transparency, as it encourages the transparency in the industry, we pandemic, as well as substantially responsible management of revenues continue to support and encourage lower commodity prices. from extractive activities. the disclosure of mining and In 2020, our global effective tax rate, exploration contracts with Through our activities as one of the pre-significant items, was 29.7%, governments as a means to build trust world’s largest resource companies, consistent with the 30.5% in 2019. and deliver accountability. During the present at multiple stages of the course of 2020, we started the review commodity supply chain, we support Our contribution goes beyond the process towards disclosing our mining governments with the payments we taxes and royalties that we pay. During and exploration contracts with make to realise value from their the year, we spent $4.6 billion on governments, to the extent that these natural resources. These taxes and wages and benefits for the 145,000 are not subject to confidentiality royalties payments can be used to people working for Glencore and restrictions. During the year, we also fund public services and infrastructure $95 million on initiatives that benefit published on our website the to improve a nation’s quality of life. beneficial ownership information of

2 Glencore Payments to Governments Report 2020 our joint ventures across our industrial trading working group supported the business. delivery of its new Reporting Guidelines and through our Over the last year, Covid-19 has participation in the ICMM’s mineral significantly impacted our working resource working group, we and home lives. In many of our supported the considerations for its operating countries, the public position on contract disclosure. infrastructure and services were not sufficiently resourced to provide We welcome your feedback on this appropriate support nationwide. In report and our approach to response, we launched a US$25 transparency. million Glencore Community Support Fund to provide additional support to new and existing local community efforts by our teams. At the end of 2020, we had spent US$19 million on Covid-19 related initiatives. Steve Kalmin We continued our active participation Chief Financial Officer in a number of working groups focusing on transparency of payments 30 June 2021 to governments. In particular, our participation in the EITI’s commodity

Governments Tax $5.8 billion 29.7% in income taxes, royalties and other Effective Tax Rate payments

Employees Communities $4.6 billion $95 million in salaries, wages, social security and on initiatives supporting local other benefits community development

Glencore Payments to Governments Report 2020 3 Our approach to tax and transparency

We are committed to comply with all applicable tax laws, rules and regulations. We pay all relevant taxes, royalties and other levies in amounts determined by the legislation of relevant national, regional or local governments. We seek to maintain long-term, open, transparent and cooperative relationships with tax authorities in our host countries.

Tax transparency Intra-group transactions Reflecting the complexity of the Group’s operations, and the We welcome fiscal transparency as it The Glencore group comprises a legitimate concern of tax encourages the responsible large number of separate legal administrations to collect the full management of revenues from our entities established in many amount due to them, our transfer activities. We believe that countries jurisdictions. Like many multinational pricing should be subject to careful that transparently and effectively enterprises, our business activities scrutiny and even occasional dispute. allocate natural resource wealth for are co-ordinated (in terms of the benefit of their communities personnel, assets and capital) on a We approach both scrutiny and have the potential to attract greater, worldwide basis. dispute in a fair and transparent more responsible and longer-term manner, but we resolutely defend Our global nature necessitates us business investment. It is imperative the principle that profit must be allocating overall group profitability that businesses, governments and taxed only once and that tax between our operating jurisdictions. civil society work in partnership to administrations are as bound in law International tax law and, in support transparency. by the Transfer Pricing Guidelines as particular, the OECD Transfer Pricing we are. Our global reach and presence in a Guidelines and Article 9 of the OECD number of higher-risk jurisdictions Model Tax Convention governs this result in Glencore generally being allocation. These require that subject to enhanced complexity and individual entities within the group uncertainty in accounting for income transact with each other at the same taxes, particularly the evaluation of price that they would if they were tax exposures and recoverability of independent parties and in due deferred tax assets. recognition of the true value to be accorded to the transaction. Our Board Audit Committee regularly reviews with senior The purpose of this allocation and of management the potential tax the Guidelines is twofold: for the fair exposures globally and the key division of Group profit to enable the estimates taken in determining the levying of tax according to where it is positions recorded, including the earned; and to ensure that the same status of material communications profit is taxed only once. with local tax authorities and the Our Group tax policies commit us to carrying values of deferred tax assets. not engineer structures or transactions that exploit transfer- pricing rules by artificially ‘transferring’ profit into lower tax jurisdictions. We trace all intragroup transactions to value-adding commercial activities.

4 Glencore Payments to Governments Report 2020 ‘Tax havens’ Our continued use of the SPV is to • It is market practice for streaming serve a commercial or administrative contracts (where future group Although there is no universally purpose, has no tax motivation and is production of precious or base applied definition of the term ‘tax fiscally transparent, ie it generates metals is pre-sold to an offtaker) to haven’, it is generally understood to neither a tax saving nor expense. For be performed by a SPV refer to a jurisdiction that imposes this reason, when we need to incorporated in a tax neutral little or no tax on income or profits. establish an SPV, it is often in a jurisdiction. Where this occurs, the In recent years, governments, the tax-neutral jurisdiction, as tax in Group ensures that any profit or media and the public at large have these cases is an irrelevance. loss arising in respect of the raised legitimate questions in Examples in the Group include: transaction is realised in connection with the alleged Switzerland, where the group has diversion of business profits by • We run many of our investments in its head office and major trading multinational enterprises into tax African oil production as local presence, via a total return swap havens mainly in order to avoid branches of Bermudan- contract between the SPV, which paying local taxes. incorporated companies that are is generally tax resident in themselves owned by Bermudan We do not undertake any such Switzerland, and Glencore SPVs. The branches are fully liable activity. Both our Group tax policies International AG. to taxation in their host countries and our adherence to the OECD and the repatriation of profit is We have undertaken a review of all Transfer Pricing Guidelines forbid the liable to such withholding taxes entities established in ‘tax haven’ allocation of profit to jurisdictions that may exist. The receipt of jurisdictions with the intention of that do not provide value-adding dividend income by the holding consolidating or eliminating as many activities and do not have any real SPVs is not taxable in Bermuda but as possible. Where it is not possible commercial substance. nor would it be if they were to do this, these entities usually Nevertheless, we continue to make established in ‘non-haven’ adopt tax residence in a non-tax use of companies incorporated in jurisdictions such as Australia, haven jurisdiction where the Group what would be termed tax neutral or Switzerland or the United can establish enhanced local tax haven jurisdictions. Where that Kingdom. The benefits of such substance. occurs, it is always for a specific offshore-incorporation derive from As a result of this review, we have purpose and the companies used reduced Group audit expense and removed from our group structure can be referred to as special purpose mitigation of country political risk. many tax haven-incorporated vehicles (SPVs). Glencore primarily • Our interest in the Colombian coal companies, or established their tax uses SPVs for two broad purposes: producer Cerrejón, a three-way residence in Switzerland, the UK or 1. As intermediate holding joint venture between Glencore, another non-tax haven jurisdiction. companies (to hold single BHP Ltd and Anglo American plc, This review continues to be a focus investments, groups of similar is held through a Bermudian entity during 2021. investments or joint venture that is tax resident in the UK, while

investments for accounting, our co-shareholders hold their administrative, governance or legal interests through EU holding SPVs. convenience). All of them are exempt from dividend taxation, although the 2. As parties to a legal contract with a two EU-country jurisdictions are non-group member where it is not typically considered to be tax necessary that the SPV has no haven jurisdictions. other function.

Glencore Payments to Governments Report 2020 5 Our approach to tax and transparency continued

External engagement In November 2020, Glencore Organisation for Economic presented at the EITI SOE Leadership Cooperation and Development We are committed to transparent Seminar to highlight the benefits of The Organisation for Economic and constructive dialogue with all of being an EITI supporting company Co-operation and Development our stakeholders. We recognise that and promoting transparency (OECD) is an international this is an evolving space and that through increased disclosures. organisation that works with through a broad range of external governments, policy makers and civil perspectives we can deliver high Our assets in EITI-implementing society to develop international standards of corporate governance countries support the ongoing standards and to find solutions to a and disclosure. development of the EITI in country, range of social, economic and by contributing to national reports Throughout the year, we engaged environmental challenges. with local EITI disclosures, with a variety of organisations on tax participating in EITI multi- We have been participating in the and transparency matters. stakeholder groups and engaging in OECD Policy Dialogue on policy consultation processes where Commodity Trading Transparency Extractive Industries Transparency applicable. for a number of years, through which Initiative we engage in discussions and The Extractive Industries International Council on Mining & knowledge sharing with both OECD Transparency Initiative (EITI) is a Metals and non-OECD resource producing multi-stakeholder initiative We are active members of the countries, as well as with our peers, supported by countries, NGOs and International Council on Mining and civil society organisations and think companies in the extractives and Metals (ICMM). The ICMM is an tanks. This platform recognises that a commodities trading sector. It international organisation made up collaborative approach supports the promotes open and accountable of 27 mining and metals companies extractive sector being a catalyst for management of extractive resources. and 38 regional and commodities’ long-term, sustainable development. Glencore has been a supporting associations. Its members are company since 2011, being active in We also welcome the OECD’s committed to strengthening the the extractives as well as the programme of work on Illicit industry’s environmental and social commodity trading industry. Financial Flows and Commodity performance and enhancing Trading and look forward to its In addition to participating regularly mining’s contribution to society. progress. in EITI conferences at a Group level, Through our membership of the we have an active role in the EITI’s ICMM’s Mineral Resource and Tax Investors, analysts and banks Working Group on Transparency in Working Groups, we collaborate with Transparency and disclosure are of Commodity Trading (Working our peers to address natural resource great interest to our shareholders Group), a multi-stakeholder group governance challenges and improve and representatives of financial that meets several times per year the transparency of mineral revenues institutions. As part of our annual and works towards increasing – including their management, report process, we review and revise transparency in commodity trading. distribution or spending. our approach to presenting During 2020, the Working Group information that is of interest to developed new reporting guidelines In 2020, the Mineral Resource these stakeholders. During 2020, in and reporting templates aimed at Working Group worked on an ICMM addition to meeting our regulatory increasing transparency in position on contract transparency; it reporting obligations, our senior commodity purchases of oil, gas and is now developing guidance to management team gave minerals from SOEs in EITI support this position. Once it is presentations at a number of implementing countries. These finalised, we will align our contract conferences. We also provide guidelines also cover information on disclosure to the ICMM position. periodic operational, financial and swap sales and resource-backed markets update to investors. loans. These guidelines set a new benchmark for transparency in the industry, which support advancing transparency and building more trust in the sector.

6 Glencore Payments to Governments Report 2020 Civil Society and Non- Governmental Organisations We regularly engage with a number of civil society groups and NGOs that have a particular focus on transparency and advancing disclosure. In additi on to working with these organisations to understand better the developments in the transparency space, we welcome these organisations providing feedback on our Payments to Governments Report.

Glencore Payments to Governments Report 2020 7 Our contribution Canada Mining activities can make a significant contribution to the national, regional and $254m total payments to local economies in which they operate, government through the provision of employment and training, tax and royalty payments to governments for essential services, local procurement, social development and environmental stewardship. Our aim is to Colombia minimise any negative impacts from our activities and to build partnerships to $67m total payments to support sustainable development and government1 growth.

We pay all relevant taxes, royalties and levies required by local and national regulation in our host countries. The Peru payments we make to the governments of the countries $ in which we operate include local, national, sales and 220m total payments to employment taxes, government royalties and licence government1 and permitting fees. In addition, we contribute to local economies through our use of local suppliers, wages and employee benefits, voluntary support of socio-economic initiatives such as health and education projects and infrastructure development.

Our total payments made under the EU Directive:

4.0 US$ billion

3.7

2.3

2.1

1.3

2016 2017 2018 2019 20202

1 Excluding payments relating to our ownership interest in the Antamina and Cerrejón joint ventures. 2 The year-on-year reduction reflects a decrease in production due to the global pandemic, as well as substantially lower commodity prices.

8 Glencore Payments to Governments Report 2020 Kazakhstan $447m total payments to government

DRC $424m total payments to government

Australia South Africa $1.9bn total payments to $1.4bn government total payments to government

How we contribute:

Local employment and skills Local procurement and Societal contribution Payments to governments development enterprise development and tax transparency

We prioritise employing Where possible, we use Our community development We pay all relevant taxes, people from the regions close local suppliers (suppliers programmes reduce royalties and other levies in to our assets. We provide located in the same country dependency on our assets, amounts determined by the families with livelihoods as the asset), and support encourage self-reliance and legislation of relevant national, via direct employment the development of local contribute to sustainable regional or local governments. at our assets and indirect businesses to drive local regional growth. In remote We welcome transparency employment via contractors economic diversification and and underdeveloped areas, in the redistribution and and our use of local suppliers. to help our host governments we install infrastructure, such reinvestment of these During 2020, 96% of our fulfil their own development as roads, water, sanitation payments. In 2020, our workforce was local to our objectives. During 2020, 80% and electricity, which is often payments to governments operating countries. of our global procurement shared as appropriate with totalled US$5.8 billion, spend was with suppliers local communities. In 2020, reflecting the taxes, royalties and contractors located we spent $95 million on and duties we pay in our in the countries where we programmes supporting local operating countries for our operate. Nearly 80,000 people community development, marketing and industrial benefited from our enterprise which included $19 million on activities. development and economic initiatives to respond to the diversification investments. global pandemic and nearly $10 million on enterprise development and economic diversification of local entrepreneurs.

Glencore Payments to Governments Report 2020 9 Our contribution continued

Covid-19 In response to the global pandemic, we launched a US$25 million Glencore Community Support Fund to provide additional support to new and existing local community efforts by our teams. We designed the Fund to be flexible and responsive and to complement existing efforts by our local teams to provide the support their communities need most at this time. It initially prioritised assistance to local health authorities and community organisations to help them respond to the immediate impacts of the crisis. Imperatives such as access to clean water, hygiene products and medical equipment were important in some regions. In others, our efforts focused on enabling students to continue learning, despite schools closing, through providing free Wi-Fi hotspots. In addition to the Fund, our offices and assets mobilised their skills and resources to provide local in-kind support. We adapted and tailored some of our existing social investment programmes to address the changing social needs during the crisis. We also participated in collaborative responses with our peers. For example, in South Africa, the Minerals Council of South Africa established regional government collaborative platforms to coordinate the efforts and resources of the mining companies’ response to the pandemic. At the end of 2020, we had spent US$19 million on Covid-19 related initiatives.

10 Glencore Payments to Governments Report 2020 Contributing to the economy of 2020 payments to the Australian economy Australia We have operated in Australia for over 20 years and hold significant interests in a range of commodity industries. Based in Sydney, we are $960m $1.9bn capital expenditure total payments to a major Australian employer, with about 17,000 government people working across industries that include coal, copper, cobalt, nickel, oil and zinc. Within many of our Australian operations, we explore and source the commodity; produce it; process and refine it; market and blend it; and ultimately handle, store and transport it to our customers around the world.

Supporting Indigenous employment 17,000 $6.3m In 2020, our Australian coal business formalised employees and community social its efforts to recruit Indigenous People to its contractors investments workforce and launched its Indigenous Employment Pathways Program. The Program’s aim is to provide real employment opportunities for Indigenous Australians who live in or with a connection to the areas directly affected by our operations. The 26-week programme, which includes training and site-based work, works with unemployed Indigenous Australians who are actively seeking employment in the resources sector. In 2020, 14 of the 20 participants completed the programme in Queensland. Of these 14 graduates, nine were initially successful in gaining employment with contractors associated with Glencore operations. A number of other graduates secured work in areas outside the resources sector.

Glencore Payments to Governments Report 2020 11 Our contribution continued

Contributing to the In northern Quebec, our Raglan Mine Over the last ten years, Glencore’s signed the first Impact and Benefit nickel business partnered with LSF economy of Canada Agreement between a mining in its delivery of sustainability Our Canadian facilities span four company and an Indigenous group education initiatives through its provinces and include nickel, copper in Canada. In 2017, Glencore operations in Canada, New and zinc mining and processing approved to the Sudbury INO’s Caledonia and Norway. operations and projects, as well as a Onaping Depth and Raglan Mine’s During 2020, in response to the technical business, Expert Process Sivumut projects. The Onaping travel restrictions, school closures Solutions (XPS), which serves the Depth Project, an ultra-deep mine, and limits on gatherings caused by global metals industry. has the potential to extend the life of the global pandemic, LSF adapted the Sudbury operations to 2035. The Our Horne Smelter, established in and transformed its resources to Sivumut project will extend Raglan 1927, is the only copper smelter in provide easy to use on-line activities Mine’s life by 20+ years beyond its Canada and is the largest and most that parents and teachers can do existing mines. advanced recycling plant of its kind with their children at home. in all of North America. In 1931, the CCR refinery opened in Quebec, Delivering sustainable education With Glencore’s support and which processes all the copper Learning for a Sustainable Future reallocation of funding, LSF created a produced by the Horne Smelter, (LSF) offers innovative educational series of weekly activities, available in and provides services to metal programmes that provide young both English and French. Parents producers, mines, copper smelters people with the knowledge, skills, and teachers around the world can and other refineries. CCR is the only values, perspectives and practices view and download the programmes copper refinery in Canada and has that are essential to a sustainable as they work hard to continue their an integrated precious metals future. children’s daily learning and refining plant. development.

2020 Payments to the Canadian economy

$544m $254m 5,500 $1.8m capital expenditure total payments to employees and community social government contractors investents

12 Glencore Payments to Governments Report 2020 Contributing to the receive advice from the centre to • Commercial fish-farming; support decisions on compensation • Establishing an Entrepreneurial economy of Colombia packages, including investments in and Employment Centre In Colombia, we own Prodeco, a entrepreneurial initiatives or finding (C-Emprende), which provides mining group that produced high- other employment opportunities. support to ex-employees and grade coal for export. community members during the One of the main objectives of transition period to find new jobs We also have a one-third stake in the Prodeco’s social performance policy and set up enterprises; and independently-managed Cerrejón has been to work with its local • Strengthening community and coal joint venture. communities and governments to government infrastructure and avoid dependence on its operations. institutions to prepare for the Providing support through care Since 2015, Prodeco has worked with economic and social transition and maintenance the United Nations Development from a mining dependent In March 2020, Prodeco placed its Programme (UNDP) to identify economy to a more diverse one. two mines on care and maintenance economic and labour alternatives for (C&M) due to the Covid-19 pandemic. a post-mining period. As part of the C&M process, Prodeco Through this work, Prodeco has offered a voluntary redundancy plan supported several high impact social (VRP) that allowed eligible projects that generate employment employees to leave the business with for the region and develop economic a significantly more attractive alternatives beyond mining for the package than that legally mandated. local communities. These include: In addition to the VRP, Prodeco, in partnership with the Employment • Forest offset programmes, such as and Entrepreneurship Centre, offers agro-forestry (cacao and coffee) an outplacement programme to projects, tourism and agricultural former employees. Following their investments; departure from Prodeco, participants

2020 Payments to the Colombian economy*

$26.1m $67m 2,500** $1.4m capital expenditure total payments to employees and community social government contractors investments

* excludes economic contributions made relating to Glencore’s proportionate ownership interest in the Cerrejón joint venture ** reduction relates to the suspension of mining activities from March 24, 2020

Glencore Payments to Governments Report 2020 13 Our contribution continued

Contributing to the Encouraging sustainability in our value chain that our product artisanal and small-scale mining does not contain ore sourced from economy of the (ASM) artisanal mining. Our engagement Democratic Republic of with those involved in ASM focuses Artisanal and small-scale mining on how ASM and large-scale mining the Congo (ASM) represents an important can sustainably co-exist as distinct We have been present in the livelihood and income source for yet complementary sectors of a Democratic Republic of the Congo many poverty-affected populations successful mining industry in the (DRC) since 2008. Today, we have around the world. The sector is DRC, while recognising the interests in Mutanda Mining SARL largely non-mechanised and important and sustainable role that (Mumi) and Kamoto Copper informal in nature so it often responsible and transparent ASM Company (KCC). Our presence has presents significant safety and could have in the supply chain. contributed to the establishment human rights risks. A key issue is the and expansion of a robust extractive participation of children in the sector. For a number of years, we have sector, created thousands of jobs, A further issue occurs when artisanal supported alternative livelihoods for supported the development of the miners illegally trespass on the those involved in ASM. We provide local economy and delivered socio- property of large-scale mines, which support for small businesses, such as economic benefits to the Katanga introduces security and safety restaurants and clothing production, region. challenges. as well as agricultural cooperatives. Our contribution includes the Reflecting our commitment to the In the DRC, ASM is a source of donation of equipment as well as DRC, we have invested over $7 billion employment for around 2 million training on skills development, in the development of Mumi and people. It is particularly prevalent business management and KCC. near our operations, where artisanal managing finances. Our approach is miners mine cobalt. Due to the link for these initiatives to become between child labour and artisanal independent and sustainable in the mining, we conduct assurance to longer term. demonstrate to our stakeholders in

2020 Payments to the DRC economy $331m $424m* 14,500 $4.1m capital expenditure total payments to employees and community social government contractors investments

* On account of a restart of Mumi over the next 12 months and higher copper and cobalt prices (compared to 2020), we expect significantly higher payments to government over the coming years.

14 Glencore Payments to Governments Report 2020 Contributing to the Kazzinc, providing employment to It also donated a further $97,000 for over 275,000 people. Each year, purchasing PPE for the police economy of Kazakhstan Kazzinc spends around 61 billion department, who are responsible for Our presence in Kazakhstan is tenge with local businesses. Covid-19 control and mitigation through Kazzinc, a major fully activities. integrated zinc producer that also Throughout the global pandemic, mines copper, precious metals and Kazzinc has actively worked with Kazzinc organised a large-scale lead. The company’s core operations local producers and suppliers to volunteer initiative for its employees are mostly in the East-Kazakhstan overcome the challenging business to deliver essential items to those in region and employ around 25,000 environment. To maintain existing need, such as veterans and older people, including contractors. supplier relationships and to recruit people who used to work in mining new partners, Kazzinc developed an and metallurgical organisations. It Kazzinc’s precious metals refinery is online communication platform. donated $65,000 for food and certified to produce London Bullion During 2020, it entered into 12 new medicines for delivery to local Market Association (LBMA) certified agreements with local residents in need and supported an gold and silver. This certification manufacturers/service providers for initiative operated by the Public promotes refining standards, a total spend of 7 billion tenge. Council of the City of Ust- documentation and the Kamenogorsk to purchase food development of good trading In addition, Kazzinc identified a baskets for people in quarantined practices. number of ways in which to provide blocks. Kazzinc also provided support to its local communities to assistance for the distribution of Supporting local communities address the unprecedented grocery and equipment to medical through the global pandemic challenge of Covid-19. Kazzinc supports local businesses workers and food packages to through its procurement activities to It provided $1.2 million to the “Paryz” low-income families. social fund, used to purchase create sustainable jobs to expand From an educational perspective, a rapid-test kits for medical workers their product range and to upgrade donation of over $10,000 was made and $345,000 to procure medical their production facilities. to Umit Children’s Home to keep the equipment for local hospitals, children safe and provide high-speed In 2016, as one of the largest mining including oxygen concentrators for a internet connection for remote companies in Kazakhstan, Kazzinc number of regional hospitals and learning. agreed with the Ministry of soap, detergents and disinfection Investments and Development, an equipment for childrens’ institutions. import substitution plan. In the past five years, around 5,000 Kazakh companies have partnered with

2020 Payments to the Kazakhstan economy $392m $447m 25,000 $36.5m capital expenditure total payments to employees and community social government contractors investments

Glencore Payments to Governments Report 2020 15 Our contribution continued

Contributing to the • Perubar SA based in Callao region. The project includes the installation It provides storage services, loads of an irrigation system for agricultural economy of Peru mineral concentrates and production and hydraulic Our Peruvian assets include: manages and rents warehouses at infrastructure to collect dam • The Antapaccay copper operation Peru’s largest and most important rainwater in the upper part of the located in the Cusco region of port. basin for transferring to the middle southern Peru and lower basins. It is anticipated Strengthening water infrastructure that ten communities’ agriculture • An interest in Volcan Compañia Our Antapaccay copper asset is and livestock activities will benefit Minera SAA, which has six located in Peru’s Espinar province, an from the dam. operating mines and one oxides area of natural mineralisation, where Antapaccay is also promoting water operation in Peru’s Central the water is mineralised and projects in Espinar city, as well as in Highlands naturally unfit for human the Tintaya-Marquiri and Alto Huarca consumption. • A 97.6% interest in Los Quenuales, communities. which operates the Iscaycruz and In collaboration with the Ministry of Yauliyacu zinc-lead mines and Agriculture, Antapaccay funded concentrator plants located in the pre-feasibility studies for the Central Highlands of Peru Jatarana-San Martin Dam • A 33.75% stake in the construction project, located in the independently-managed upper part of the Cañipia river basin. Antamina joint venture, which The project will improve the owns a copper-zinc mine located in infrastructure for distributing water the Andes in northern Peru to local communities.

2020 Payments to the Peruvian economy*

$204m $220m 16,500 $16.4m capital expenditure total payments to employees and community social government contractors investments

* excludes economic contributions made relating to Glencore’s proportionate ownership interest in the Antamina joint venture

16 Glencore Payments to Governments Report 2020 Contributing to the operator of a crude oil refinery in providing financial guidance, funding Cape Town and a lubricants and technical skills development. The economy of South Africa manufacturing plant in Durban. hubs target businesses that are Glencore has been present in South majority owned by black, female, Africa since 1974. Today, our Empowering local business disabled and/or young ferroalloys and coal commodity In South Africa, recognising the role entrepreneurs. businesses have assets in three that small and medium-sized Through the ESD programme, our provinces (Mpumalanga, Limpopo businesses can take in the country’s South African coal business, has also and North West). Our South African economic recovery from the impacts established a Supplier Development coal assets include four complexes of Covid-19, our ferroalloys and coal Training Programme. The one-year that produce thermal coal for export businesses are rolling out Enterprise training programme equips SMME and domestic power generation. Supplier Development (ESD) hubs. members with the knowledge and To establish the hubs, we partnered Through our 79.5% stake in the expertise to grow their businesses. It with a consultancy that specialises in Glencore-Merafe Chrome Venture, covers various topics, such as; the design, development and we have interests in five chrome and strategic planning, Glencore’s implementation of enterprise and one silica mines and five ferroalloys procurement approach, acquiring supplier development solutions. smelter complexes. We also have, businesses, participating in tendering through our majority shareholding The objective of the hubs is the processes, management and stake in the Rhovan-Bakwena long-term sustainability of small, leadership skills and financial Vanadium Venture, an open-cast micro and medium enterprises acumen. mine and smelter complex, which (SMME) through their integration The hubs provide support for six to 36 mainly produces ferrovanadium and into competitive markets as stronger months, depending on the growth vanadium pentoxide. and more resilient businesses. The stage and development needs of hubs focus on economic inclusion In 2019, we acquired Astron Energy, a each participating SMME. leading supplier of petroleum and up-skilling for the communities products in South Africa and the living around our operations through

2020 payments to the South African economy

$296m $1.4bn 18,500 $6m capital expenditure total payments to employees and community social government contractors investments

Glencore Payments to Governments Report 2020 17 Our payments to governments1

The information below has been prepared in the manner outlined in the About this report section on page 39

Economic contribution Taxes and duties relating to Payments not Total EU Customs/Import/ non-extractive included in Amounts in US$ '000 Production Infrastructure Transparency Excise/Export tax activities plus Sustainability Country Entitlements Taxes on Income 2 Royalties Fees improvements Directive and duties Payroll taxes 5 other taxes 3 Report4 Total

Argentina 6 - 976 - - - 976 303 7,255 9,387 - 17,921

Australia - 179,318 500,083 28,890 1,654 709,946 540,916 166,544 444,977 - 1,862,383

Bolivia - 619 5,684 - - 6,303 413 5,055 8,602 - 20,373

Cameroon 18,312 648 - - - 18,960 - 14 29 (18,312) 691

Canada - 39,117 - 1,423 - 40,540 - 38,387 174,864 - 253,791

Chad 5,915 - 8,191 2,563 - 16,669 1,605 377 4,308 (8,478) 14,480

Chile - 238,520 - 969 - 239,489 - 3,764 39,920 (227,360) 55,813

Colombia - 37,644 55,563 341 2,561 20,821 101 2,294 34,036 9,255 66,507

Democratic Republic of Congo - 40,694 116,332 157 97,828 255,012 116,284 45,843 6,522 - 423,661

Equatorial Guinea 22,690 9,891 10,700 299 - 43,580 188 275 1,458 (22,989) 22,512

Kazakhstan - 272,659 93,195 - - 365,854 2,744 44,682 33,676 - 446,957

Peru - 205,912 58,541 6,758 - 271,211 - 21,754 152,538 (225,324) 220,178

South Africa - 62,049 15,218 - - 77,267 - 4,997 1,323,700 - 1,405,964

Tanzania ------88 324 - 412

Zambia - - 16,402 154 - 16,556 1,833 2,104 25,292 - 45,786

Rest of the World ------195,833 740,623 - 936,457 Total at 31 December 2020 46,917 1,012,759 879,910 41,555 102,044 2,083,184 664,387 539,267 3,000,256 (493,208) 5,793,886

1 The reports are not corrected for rounding. 2 Taxes on income include income taxes paid in Colombia, Peru and Chile relating to Glencore’s proportionate ownership interest in joint ventures (Cerrejón, Antamina and Collahuasi) amounting to a total of $383 million. 3 Taxes and duties paid relating to non-extractive activities are considered without payroll tax. Other taxes include: wealth tax, stamp duties, transfer tax, environmental tax and other taxes according to local law. 4 Payments not included in the 2020 Sustainability Report are primarily payments relating to Glencore’s proportionate ownership interest in certain joint ventures noted above. These were necessarily not part of the scope of the 2020 Sustainability Report, which aligns itself with the Group’s statutory financial reporting. 5 Payroll taxes include payments made by the employer only; payments made by employees amounted to a total of $1,101 million. 6 Disposal of Minera Alumbrera Limited in December 2020.

18 Glencore Payments to Governments Report 2020 Economic contribution Taxes and duties relating to Payments not Total EU Customs/Import/ non-extractive included in Amounts in US$ '000 Production Infrastructure Transparency Excise/Export tax activities plus Sustainability Country Entitlements Taxes on Income 2 Royalties Fees improvements Directive and duties Payroll taxes 5 other taxes 3 Report4 Total