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AURUKUN BAUXITE PROJECTAURUKUN COMMUNITY HELPS PROGRESS PROJECT

We are pleased to report significant progress during the second half of 2017 as we work with Traditional Owners and technical specialists to progress our assessment of the Aurukun Bauxite Resource.

Although we have met all the regulatory requirements since making our application in January 2015, we are yet to receive the Mineral Development Licence from the Queensland Government. In the meantime, the Traditional Owners, the directors of Ngan Aak Kunch Aboriginal Corporation and the Aurukun community have worked with us to enable key activities to take place before this year’s wet season.

Over the last few months, with the permission of the Traditional Owners, the work that has been undertaken in and around Aurukun has included:

• Groundwater monitoring bores to measure groundwater levels and quality around the resource area.

• Ecology surveys (for animals and plants) around the Tcharawopin resource area.

• Soil and geochemistry sampling.• Aquatic and river ecology assessments as well as

bathymetry surveys.• Surveys of potential off-shore transhipping zones.• Detailed aerial surveys of the resource area.

We thank the community for their support and assistance in progressing the Project.

BUILDING LOCAL PARTICIPATION

During 2017, we have seen Aurukun residents involved in many aspects of our work, including:

• Providing community awareness training to consultants visiting Aurukun for the first time.

• Offering welcomes to country to visitors and workers from other Traditional Owner families prior to starting work in the resource area.

• Working as part of cultural heritage assessments of areas prior to groundwater bore installation.

• Participating in consultation meetings to discuss Project plans and providing feedback.

• Assisting the fauna ecologists and hydro-geologists with their work on site.

CONTRIBUTING IN THE COMMUNITY

Over the past six months, Glencore has been proud to contribute to local community events, activities and programs which has included:

• Aurukun State School students attending the Laura Festival• Several awards at the Aurukun State School Awards night• The Queensland Music Festival event featuring Dan Sultan• Restorative Justice Community Peacekeeping Training• The 2017 River to Ramp Fun Run• The Aurukun Community Christmas Function

We look forward to continuing to work with local groups and organisations in Aurukun during 2018.

Project Update November 2017

@GlencoreAus facebook.com/GlencoreAus

Although we are still at an early stage, over the past few months we have seen:

• 13 Aurukun residents complete Project inductions and employed to perform work in the resource area.

• A further 12 Aurukun residents engaged to provide services outside the resource area.

• 22 technical specialists – ranging from ecologists and hydro-geologists to groundwater drillers – have stayed in Aurukun for periods of up to three weeks each; contributing to the local economy by staying locally and accessing local services.

What’s been happening

OCTOBER 2017: Our consultants deploying the sounding device to survey the ocean seabed in the proposed transhipping locations offshore from Aurukun

JULY 2017: Proud to support the Queensland Music Festival in Aurukun featuring Dan Sultan

JUNE 2017: Terrestrial ecology surveys in the Project area with permission of Traditional Owners – surveying flora and trapping/releasing fauna

JULY 2017: Inspecting and re-baiting fauna camera traps in the Project area as part of the ecological studies

JULY 2017: Our office in Aurukun established at the Themp Street Office building – the flag out front will let community members know when we are in town

AUGUST 2017: A visit up the Watson River with Traditional Owners from the areas – discussing places of significance and views of potential activities

SEPTEMBER 2017: Cultural Heritage clearances being undertaken in Tcharawopin and Watson River areas with Traditional Owners – looking at potential sites for groundwater monitoring bores

Project concepts

COCONUT PROJECT

The Coconut bauxite deposit is in the north-western corner of our Mineral Development Licence (MDL) area.

Upon the grant of the MDL, we intend to assess the feasibility of developing the Coconut deposit through a bauxite mine that could produce up to six million dry product tonnes per year, over a 20 year mine life.

Our original project concept involves a potential mining operation to extract, wash and screen bauxite from the Coconut bauxite resource, which would be trucked and then barged to an off-shore transhipment point for export.

To progress this project we need to perform work that includes :

• Undertaking further surveys of the land and water that may be part of the project footprint.

• Consulting with Traditional Owners on project concepts and potential impacts, as well as options to avoid or mitigate impacts.

• Performing baseline environmental studies of the area.

• Preparing impact assessments as part of developing an environmental impact statement, with particular focus on things such as surface and groundwater, terrestrial and aquatic ecology and the marine environment.

• Conducting further analysis of resource samples and geotechnical information.

• Developing local participation plans to maximise local economic opportunities.

• Undertaking trade-off analysis of project options and advancing engineering design.

TCHARAWOPIN PROJECT (FORMERLY NW)

The Tcharawopin bauxite deposit is in the south-western corner of our MDL area, about 25 kilometres away from the Coconut deposit.

Our further work since 2015 has indicated the potential for the additional development of this small deposit, located closer to Aurukun, which could produce an unwashed bauxite product of up to 1.7 million wet tonnes per annum over a six year period. The scale of potential development would also allow us to focus on building local workforce capacity.

The project concept for the Tcharawopin deposit would involve a shortened dry season only operation (approximately 40 weeks) that would mine bauxite and transport product to a barge loading facility on the Watson River for transhipping off-shore for export.

We are undertaking consultations with Traditional Owners for this country, as well as progressing trade-off studies as part of our technical program.

Baseline environmental assessments commenced in May 2017 with the permission and involvement of Traditional Owners and these will continue as part of our further feasibility work.

Business Case Validation

WE ARE HERE

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For further information please contact: aurukun@glencore.com.au

About the Aurukun bauxite resource:The Aurukun bauxite resource is located on land that is traditionally owned by the Wik and Wik Way People near the town of Aurukun on Cape York in Queensland.

It is located within a designated ‘restricted area’ that comprises 11 deposits over an area spanning 75 kilometres long and 25 kilometres wide.

Australia has the second largest reserves of bauxite in the world with the western Cape York region being a major contributor.

Bauxite is the primary ore from which aluminium metal is extracted. Aluminium is a widely used metal in a range of industries, including transport, construction and packaging. It is a metal that can be recycled endlessly with approximately two thirds of all the aluminium ever produced still in use today.

MINERAL DEVELOPMENT LICENCE

Following an open and competitive tender process run by the Queensland Government, Glencore entered into a Development Agreement with the State to assess the feasibility of developing this resource.

As part of this process, in January 2015, Glencore applied for Mineral Development Licence 2001 over the resource area.

Since 2015 we have been undertaking regular engagement and consultation with Traditional Owners in Aurukun regarding potential project plans and options.

The project is still at an early stage as we wait for grant of the MDL but we recognise that the direct involvement of Traditional Owners and community members is vital to any future success.

Broader engagement with the Aurukun community and regional stakeholders is planned upon grant of the MDL by the Queensland Government.

Glencore at AEMEE Glencore was pleased to support the 2017 Aboriginal Enterprises in Mining Energy and Exploration conference in Cairns in October. Congratulations to the Board of AEMEE and the conference organisers for a great event

Concept StudyProject Description

ConfirmationConstruction

ReadinessProject Commitment

(Execution)

• Desktop analysis of data

• Detailed project proposal prepared for government

• Broad community consultation

• Technical studies

• MDL granted

• Environmental and technical studies to assess potential impacts and remove assumptions from business case

• Regulatory approvals

• Design work

• Local Participation Plan

• Agreement negotiation

• Final Investment Decision

• Construction procurement

Our proposed development involves a five stage process:

LOCAL AURUKUN BUSINESS COMPLETES SCOPE SAFELY AND AHEAD OF TIME

A key requirement for undertaking the groundwater bore installation was creating access paths and drill pads at approximately 20 identified locations.

After cultural heritage assessment of these locations, a local Aurukun business was engaged to undertake the work to clear fallen trees and obstacles from existing paths as well create basic access paths with minimal disturbance to the local environment.

The work was completed safely and ahead of schedule by a local three-person crew over a three week period in November.

NW PROJECT RENAMED AS TCHARAWOPIN

We have previously talked about assessing two projects for viability – the Coconut resource and the NW resource.

After consultation with families from the area, it was agreed that the NW resource would be renamed ‘Tcharawopin’ which is the local place name where the resource is located.

We intend to complete environmental impact studies on the Tcharawopin Project in 2018, as well as progress our technical studies and community discussions, before a decision on developing that project can be made.