Obligation GlencoreX 0% ( XS1065566876 ) en USD

Société émettrice GlencoreX
Prix sur le marché 100 %  ▲ 
Pays  Suisse
Code ISIN  XS1065566876 ( en USD )
Coupon 0%
Echéance 06/05/2018 - Obligation échue



Prospectus brochure de l'obligation Glencore XS1065566876 en USD 0%, échue


Montant Minimal 200 000 USD
Montant de l'émission 200 000 000 USD
Description détaillée Glencore est une société minière et commerciale suisse de matières premières, active dans l'exploration, l'extraction, le raffinage et la commercialisation de métaux, de minerais et d'énergies.

L'Obligation émise par GlencoreX ( Suisse ) , en USD, avec le code ISIN XS1065566876, paye un coupon de 0% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 06/05/2018








Base Prospectus dated May 7, 2013
Glencore Finance (Europe) S.A.
(incorporated in Luxembourg)
guaranteed by

Glencore Xstrata plc
(incorporated in Jersey)
and
Glencore International AG
(incorporated in Switzerland)
and
Xstrata (Schweiz) AG
(incorporated in Switzerland)
US$ 20,000,000,000
Euro Medium Term Note Program

Arranger
Barclays
Dealers
Barclays
BNP Paribas
Citigroup
Credit Suisse
Deutsche Bank
HSBC
J.P. Morgan
The Royal Bank of Scotland





Under this US$ 20,000,000,000 Euro Medium Term Note Program (the "Program"), Glencore Finance
(Europe) S.A. (the "Issuer") may from time to time issue notes (the "Notes") unconditionally (subject, in the
case of Xstrata (Schweiz) AG, to applicable Swiss law) and irrevocably guaranteed by Glencore Xstrata plc,
Glencore International AG and Xstrata (Schweiz) AG (each a "Guarantor" and together, the "Guarantors")
and denominated in any currency agreed between the Issuer, the Guarantors and the relevant Dealer (as
defined below).
The maximum aggregate principal amount of Notes outstanding at any one time under the Program will not
exceed US$ 20,000,000,000 (and for this purpose, any Notes denominated in another currency shall be
translated into U.S. dollars at the date of the agreement to issue such Notes (calculated in accordance with the
provisions of the Dealership Agreement (as defined under "Subscription and Sale")). The maximum
aggregate principal amount of Notes which may be outstanding at any one time under the Program may be
increased from time to time, subject to compliance with the relevant provisions of the Dealership Agreement
as defined under "Subscription and Sale".
The Notes may be issued on a continuing basis to one or more of the Dealers specified under "General
Description of the Program" and any additional Dealer appointed under the Program from time to time by the
Issuer and each Guarantor (each a "Dealer" and together the "Dealers"), which appointment may be for a
specific issue or on an ongoing basis. References in this Base Prospectus to the "relevant Dealer" shall, in
relation to an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to the lead
manager of such issue and, in relation to an issue of Notes subscribed by one Dealer, be to such Dealer.
Application has been made for Notes issued under the Program for the period of 12 months after the
publication of this Base Prospectus to be listed on the Official List of the Luxembourg Stock Exchange and
admitted to trading on the regulated market of the Luxembourg Stock Exchange (the "Luxembourg Stock
Exchange's Regulated Market"). References in the Base Prospectus to Notes being "listed" (and all related
references) shall mean that such Notes have been listed on the Luxembourg Stock Exchange and admitted to
trading on the Luxembourg Stock Exchange's Regulated Market. The Luxembourg Stock Exchange's
Regulated Market is a regulated market for the purposes of the Directive 2004/39/EC on Markets in Financial
Instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the
European Parliament and of the Council and repealing Council Directive 93/22/EEC. The Program also
permits Notes to be issued on the basis that they will not be admitted to listing, trading and/or quotation by
any listing authority, stock exchange and/or quotation system or to be admitted to listing, trading and/or
quotation by such other or further listing authorities as may be agreed with the Issuer. Notice of the aggregate
nominal amount of the Notes, interest (if any) payable in respect of Notes, the issue price of Notes and any
other terms and conditions which are applicable to each Tranche (as defined under "Terms and Conditions of
the Notes") of Notes will be set out in the applicable final terms (the "Final Terms") which, with respect to the
Notes to be admitted to listing on the Official List of the Luxembourg Stock Exchange and to trading on the
Regulated Market of the Luxembourg Stock Exchange, will be filed with the Luxembourg Stock Exchange.
In the case of any Notes which are to be admitted to trading on a regulated market within the European
Economic Area or offered to the public in a Member State of the European Economic Area in circumstances
which require the publication of a prospectus under the Prospectus Directive (as defined herein), the
minimum specified denomination shall be 100,000 (or its equivalent in any other currency as at the date of
issue of the Notes).
This document comprises a base prospectus for the purposes of Article 5.4 of the Prospectus Directive and for
the purpose of giving information with regard to the Issuer and each Guarantor, which, according to the
particular nature of the Issuer and each Guarantor and the Notes, is necessary to enable investors to make an
informed assessment of the liabilities, financial position, profit and losses and prospects of the Issuer.
References in this Base Prospectus to the "Group" are to references to Glencore Xstrata plc and its

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consolidated subsidiaries, through which Glencore Xstrata plc may own its assets and conduct operations
indirectly, references to "Glencore" are to the Group excluding Xstrata and references to "Xstrata" are to
Xstrata Limited (previously known as Xstrata plc) and its subsidiaries and any subsidiary thereof as at
completion of the merger between Glencore and Xstrata completed on May 2, 2013 (the "Merger"). This
document comprises the base prospectus in respect of Glencore Finance (Europe) S.A. and for that purpose,
this whole document would be referred to as the "Base Prospectus". This Base Prospectus has been approved
by the Luxembourg Commission de Surveillance du Secteur Financier (the "CSSF") which is the
Luxembourg competent authority for the purpose of the Prospectus Directive and relevant implementing
measures in Luxembourg, as a base prospectus issued in compliance with the Prospectus Directive and
relevant implementing measures in Luxembourg for the purpose of giving information with regard to the issue
of Notes issued under the Program described in this Base Prospectus during the period of twelve months after
the date hereof. The CSSF, however, assumes no responsibility as to the economic and financial soundness of
the transactions contemplated under this Base Prospectus or the quality or solvency of the Issuer in line with
the provisions of article 7(7) of the Luxembourg Act dated 10 July 2005 (as amended) relating to prospectuses
for securities (loi relative aux prospectus pour valeurs mobilières).
Prospective investors should have regard to the factors described under the section headed "Risk Factors" in
this Base Prospectus.
The Program is, as of the date of this Base Prospectus, rated Baa2 in respect of the Notes by Moody's
Investors Service Ltd. ("Moody's") and BBB in respect of the Notes by Standard & Poor's Credit Market
Services France SAS ("S&P"). Moody's and S&P are established in the European Union and are registered
under Regulation (EC) No 1060/2009 on credit rating agencies, as amended (the "CRA Regulation"). Further
information relating to the registration of rating agencies under the CRA Regulation and a current list of
registered credit rating agencies can be found on the website of the European Securities and Markets
Authority.
Tranches of Notes issued under the Program may be rated or unrated. Where a Tranche of Notes is rated, the
applicable rating(s), which will not necessarily be the same as the rating applicable to the Program, will be
specified in the relevant Final Terms. In general, European regulated investors are restricted from using a
rating for regulatory purposes if such rating is not issued by a credit rating agency established in the European
Union and registered under the CRA Regulation.
A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, change or
withdrawal at any time by the assigning rating agency.
This document should be read and construed together with any supplements hereto and with any other
documents incorporated by reference herein and, in relation to any Tranche of Notes, should be read and
construed together with the relevant Final Terms.
The Issuer and each Guarantor has confirmed to the Dealers named under "Subscription and Sale" below that
this Base Prospectus (including for this purpose, each relevant Final Terms) contains all information which is
(in the context of the Program, the issue and offering of the Notes and the guarantees of the Notes) material;
that such information is true, accurate and complete in all material respects and is not misleading in any
material respect; that any opinions, predictions or intentions expressed herein are honestly held or made, are
based on reasonable assumptions and are not misleading in any material respect; that this Base Prospectus
does not omit to state any material fact necessary to make such information, opinions, predictions or
intentions (in the context of the Program, the issue and offering of the Notes and the guarantees of the Notes)
not misleading in any material respect; and that all reasonable enquiries have been made to verify the
foregoing.

3


No person has been authorized to give any information or to make any representation not contained in or not
consistent with this Base Prospectus or any other document entered into in relation to the Program or any
information supplied by the Issuer or any Guarantor or such other information as is in the public domain and,
if given or made, such information or representation should not be relied upon as having been authorized by
any of the Issuer, the Trustee, the Guarantors or the Dealers.
No representation or warranty is made or implied by the Dealers or any of their respective affiliates, and
neither the Dealers nor any of their respective affiliates makes any representation or warranty or accepts any
responsibility as to the accuracy or completeness of the information contained in this Base Prospectus.
Neither the delivery of this Base Prospectus or any Final Terms nor the offering or delivery of any Note shall,
in any circumstances, create any implication that the information contained in this Base Prospectus is true
subsequent to the date hereof or the date upon which this Base Prospectus has been most recently amended or
supplemented or that there has been no adverse change, or any event reasonably likely to involve any adverse
change, in the condition (financial or otherwise) of the Issuer or any Guarantor since the date thereof or, if
later, the date upon which this Base Prospectus has been most recently amended or supplemented or that any
other information supplied in connection with the Program is correct at any time subsequent to the date on
which it is supplied or, if different, the date indicated in the document containing the same.
The distribution of this Base Prospectus and any Final Terms and the offering and delivery of the Notes in
certain jurisdictions may be restricted by law. Persons into whose possession this Base Prospectus or any
Final Terms comes are required by the Issuer, any Guarantor and the Dealers to inform themselves about and
to observe any such restrictions. For a description of certain restrictions on offers and deliveries of Notes and
on the distribution of this Base Prospectus or any Final Terms and other offering material relating to the
Notes, see "Subscription and Sale". In particular, Notes have not been and will not be registered under the
United States Securities Act of 1933 (as amended) (the "Securities Act") and are subject to U.S. tax law
requirements. Subject to certain exceptions, Notes may not be offered, sold or delivered within the United
States or to U.S. persons.
Neither this Base Prospectus nor any Final Terms constitutes an offer or an invitation to subscribe for any
Notes and should not be considered as a recommendation by the Issuer, the Guarantors, the Trustee, the
Dealers or any of them that any recipient of this Base Prospectus or any Final Terms should subscribe for any
Notes. Each recipient of this Base Prospectus or any Final Terms shall be taken to have made its own
investigation and appraisal of the condition (financial or otherwise) of the Issuer and the Guarantors.
The Issuer and the Guarantors may agree with any Dealer that Notes may be issued in a form not
contemplated by the Terms and Conditions of the Notes herein, in which event (in the case of Notes intended
to be admitted to listing on the Official List of the Luxembourg Stock Exchange and to trading on the
Luxembourg Stock Exchange's Regulated Market) a supplement to this Base Prospectus, if appropriate, will
be made available which will describe the effect of the agreement reached in relation to such Notes.
In this Base Prospectus, unless otherwise specified, references to a "Member State" are references to a
Member State of the European Economic Area, references to "Relevant Member State" means a Member
State of the European Economic Area which has implemented the Prospectus Directive, references to
"Prospectus Directive" mean Directive 2003/71/EC (and amendments thereto, including the 2010 PD
Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant
implementing measure in the Relevant Member State, references to "2010 PD Amending Directive" mean
Directive 2010/73/EU, references to "US", "U.S." and "United States" are to the United States of America,
references to "US$" and "U.S. dollars" are to United States dollars, references to "EUR", "" or "Euro" are to
the currency introduced at the start of the third stage of European economic and monetary union, and as
defined in Article 2 of Council Regulation (EC) No 974/98 of May 3, 1998 on the introduction of the Euro, as
amended, references to "sterling", "Pound Sterling" and "£" are to the lawful currency of the United

4


Kingdom, references to "ZAR" are to South African Rand, references to "Swiss Francs" are to the lawful
currency of Switzerland, references to "Argentine Pesos" or "ARS" are to the lawful currency of Argentina,
references to "Australian dollars", "A$" or "AUD" are to the lawful currency of Australia, references to
"Canadian dollars", "C$" or "CAD" are to the lawful currency of Canada, references to "Chilean Peso" or
"CLP" are to the lawful currency of Chile, references to "Colombian Pesos" or "COP" are to the lawful
currency of Colombia, references to "yen" or "JPY" are to the lawful currency of Japan, references to
"Kroner" or "NOK" are to the lawful currency of Norway, references to "Peruvian Sol" or "PEN" are to the
lawful currency of Peru, references to "Kazakhstani Tenge" or "KZT" are to the lawful currency of
Kazakhstan and references to the "PHP" are to the lawful currency of the Philippines.
Certain figures included in this Base Prospectus have been subject to rounding adjustments; accordingly,
figures shown for the same category presented in different tables may vary slightly and figures shown as
totals in certain tables may not be an arithmetic aggregation of the figures which precede them.
This Base Prospectus has been prepared on the basis that any offer of Notes in any Relevant Member State
will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant
Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly any person
making or intending to make an offer in that Relevant Member State of Notes which are the subject of an
offering contemplated in this Base Prospectus as completed by Final Terms in relation to the offer of those
Notes may only do so in circumstances in which no obligation arises for the Issuer, the Guarantors or any
Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus
pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. None of the Issuer,
the Guarantors nor any Dealer has authorized, nor do they authorize, the making of any offer of Notes in
circumstances in which an obligation arises for the Issuer, the Guarantors or any Dealer to publish or
supplement a prospectus for such offer and the relevant Issuer has consented in writing to its use for the
purpose of such offer.
In connection with the issue of any Tranche of Notes, one or more relevant Dealers (in such capacity,
the "Stabilizing Manager(s)") (or any person acting on behalf of any Stabilizing Manager(s)) may over
allot Notes or effect transactions with a view to supporting the market price of the Notes at a level
higher than that which might otherwise prevail. However, there is no assurance that the Stabilizing
Manager(s) (or any person acting on behalf of any Stabilizing Manager) will undertake stabilization
action. Any stabilization action may begin on or after the date on which adequate public disclosure of
the terms of the offer of the relevant Tranche of Notes is made and, if begun, may be ended at any time,
but it must end no later than the earlier of 30 days after the issue date of the relevant Tranche of Notes
and 60 days after the date of the allotment of the relevant Tranche of Notes. Any stabilization action or
over allotment must be conducted by the relevant Stabilizing Manager(s) (or any person acting on
behalf of any Stabilizing Manager(s)) in accordance with all applicable laws and rules.



5


RESPONSIBILITY STATEMENT
The Issuer and each Guarantor (together, the "Responsible Persons") accepts responsibility for the
information contained in this Base Prospectus and the Final Terms for each Tranche of Notes issued under the
Program and declares that, having taken all reasonable care to ensure that such is the case, the information
contained in this Base Prospectus is, to the best of its knowledge, in accordance with the facts and contains no
omission likely to affect its import.


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TABLE OF CONTENTS
Page
RISK FACTORS ................................................................................................................................................. 8
GENERAL DESCRIPTION OF THE PROGRAM .......................................................................................... 30
INFORMATION INCORPORATED BY REFERENCE .................................................................................. 34
SUPPLEMENT TO THE BASE PROSPECTUS .............................................................................................. 37
FORMS OF THE NOTES ................................................................................................................................. 38
TERMS AND CONDITIONS OF THE NOTES .............................................................................................. 41
FORM OF FINAL TERMS ............................................................................................................................... 71
OVERVIEW OF PROVISIONS RELATING TO THE NOTES WHILE IN GLOBAL FORM ...................... 81
DESCRIPTION OF GLENCORE FINANCE (EUROPE) S.A. ....................................................................... 84
DESCRIPTION OF GLENCORE XSTRATA PLC AND THE GROUP .......................................................... 87
DESCRIPTION OF GLENCORE INTERNATIONAL AG............................................................................ 140
DESCRIPTION OF XSTRATA (SCHWEIZ) AG ........................................................................................... 141
UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP .......................................... 143
SUBSCRIPTION AND SALE ........................................................................................................................ 149
TAXATION ..................................................................................................................................................... 152
GENERAL INFORMATION .......................................................................................................................... 157
DEFINITIONS AND GLOSSARY OF TECHNICAL TERMS ...................................................................... 160
APPENDIX 1 -- OVERVIEW OF CERTAIN DIFFERENCES BETWEEN INTERNATIONAL
FINANCIAL REPORTING STANDARDS AND SWISS GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ............................................................................................................... 164



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RISK FACTORS
Prospective investors should read and carefully consider the following risk factors and other information in
this Base Prospectus before deciding to invest in the Notes. Additional risks not currently known to the Issuer
or the Guarantors or that they now deem immaterial may also adversely affect the Issuer or the Guarantors
or affect an investment in the Notes.
Risks relating to Glencore Finance (Europe) S.A.
Glencore Finance (Europe) S.A. is a finance vehicle.
Glencore Finance (Europe) S.A.'s primary business is the raising of money for the purpose of on lending to
other members of the Group. Accordingly, substantially all Glencore Finance (Europe) S.A.'s assets are loans
and advances made to other members of the Group and the ability of Glencore Finance (Europe) S.A. to
satisfy its obligations in respect of the Notes will depend upon payments made to it by other members of the
Group in respect of loans and advances made by Glencore Finance (Europe) S.A.
Risks relating to the Group
The Group is exposed to fluctuations in the expected volumes of supply and demand for
commodities.
The expected volumes of supply and demand for the commodities in which the Group is active vary over
time, based on changes in resource availability, government policies and regulation, costs of production,
global and regional economic conditions, demand in end markets for products in which the commodities are
used, technological developments, including commodity substitutions, fluctuations in global production
capacity, global and regional weather conditions, natural disasters and diseases, all of which impact global
markets and demand for commodities. Furthermore, changes in expected supply and demand conditions
impact the expected future prices (and thus the price curve) of each commodity.
Fluctuations in the volume of each commodity produced by the Group or marketed by the Group could
materially impact the business, results of operations and earnings of the Group. These fluctuations could
result in a reduction or increase in the income generated in respect of the volumes handled by the Group's
marketing activities, or a reduction or increase in the volume and/or margin in respect of commodities
produced by the Group's industrial assets.
The Group is exposed to fluctuations in commodity prices and to deterioration in economic and
financial conditions.
The revenue and earnings of the Group's industrial asset activities and, to a lesser extent, the Group's
marketing activities are dependent upon prevailing commodity prices. Commodity prices are influenced by a
number of external factors, including the supply and demand for commodities, speculative activities by
market participants, global political and economic conditions and related industry cycles and production costs
in major producing countries. Fluctuations in the price of commodities produced or marketed by the Group
could materially impact the Group's business, results of operations and earnings.
The impacts that fluctuating commodity prices have on the Group's business differ between its marketing
activities and industrial activities.
In a market environment in which prices for a particular commodity are higher on average, the
premiums/margins that the Group generates in its physical marketing operations relating to such commodity
as a result of geographical, time and quality imbalances tend to be higher. The Group's marketing activities
also generally benefit from fluctuating market prices, rather than long periods of stable prices, as it seeks to

8


physically arbitrage such resulting price differentials. As prices of commodities rise, the Group generally has
higher working capital financing requirements over the same quantity of commodities in question. During
periods of falling commodity prices, the opposite applies in that the Group will require less working capital
financing for its marketing activities.
Higher prices will be particularly favorable to the profitability of the Group in respect of those commodities
which the Group produces at its industrial assets or are produced by its associated companies and other
investees. Similarly, low prices will negatively impact the Group's industrial activities and could result in
such activities incurring losses.
A significant downturn in the price of commodities generally results in a decline in the Group's profitability
during such a period and could potentially result in a devaluation of inventories and impairments. Although
the impact of a downturn on commodity prices affects industrial and marketing activities differently, the
negative impact on its industrial activities is generally greater, as the profitability in the industrial activities is
more directly exposed to price risk due to its higher level of fixed costs, while the Group's marketing
activities are ordinarily substantially hedged in respect of price risk and principally operate a service-like
margin-based model. The Group has not historically engaged in meaningful hedging against declines in
commodity prices related to industrial production and, as a result, volatility in commodity prices has directly
impacted its results of operations. If the Group does not engage in meaningful hedging against declines in
commodity prices, its business and results of operations could also be impacted by volatility in commodity
prices.
In addition, a decline in economic and financial conditions globally or in a specific country, region or sector
may have a material adverse effect on the business, results of operations or earnings of the Group. For
example, although most commodities' fixed pricing periods are relatively short, a significant reduction or
increase in commodity prices could result in customers or suppliers, as the case may be, being unwilling or
unable to honor their contractual commitments to purchase or sell commodities on pre-agreed pricing terms.
In addition, a tightening of available credit may make it more difficult to obtain, or may increase the cost of
obtaining, financing for the Group's marketing activities and capital expenditures at the Group's industrial
assets. Given the persisting uncertainty about a global economic recovery, the Eurozone crisis and concerns
about credit risk (including that of sovereigns), forward planning is difficult. Changing production levels in
response to current price levels or estimates of future price levels imposes costs, and, if mistimed, could
adversely affect the results of the Group's operations or financial condition. In addition, the default, or a
significant decline in the credit rating, of one or more sovereigns or financial institutions could cause severe
stress in the financial system generally and could adversely affect the markets in which the Group operates
and the businesses and economic condition and prospects of its counterparties, customers, suppliers or
creditors, directly or indirectly, in ways which it is difficult to predict. The impact of this could be detrimental
to the Group and could have a material adverse effect on the business, results of operations or earnings of the
Group.
The Group is exposed to significant geopolitical risk.
The Group operates and owns assets in a large number of geographic regions and countries, some of which
are categorized as developing and have unstable political or social climates and, as a result, is exposed to a
wide range of political, regulatory and tax environments. These environments are subject to change in a
manner that may be materially adverse for the Group, including changes to government policies and
regulations governing industrial production, foreign investment, price controls, import and export controls,
tariffs, subsidies, income and other forms of taxation (including policies relating to the granting of advance
rulings on taxation matters), nationalization or expropriation of property, repatriation of income, royalties, the
environment and health and safety.

9


Relatively high commodity prices and other factors in recent years have resulted in increased resource
nationalism in some countries, with governments repudiating or renegotiating contracts with, and
expropriating assets from, companies that are producing in such countries. Many of the commodities that the
Group produces and markets are considered strategic resources for particular countries. Governments in these
countries may decide not to recognize previous arrangements if they regard them as no longer being in the
national interest. Governments may also implement export controls on commodities regarded by them as
strategic (such as oil or wheat) or place restrictions on foreign ownership of industrial assets. Renegotiation or
nullification of existing agreements, leases, permits or tax rulings, changes in fiscal policies (including new or
increased taxes or royalty rates or the implementation of windfall taxes which have recently been seen in
several jurisdictions in which the Group has industrial assets) and currency restrictions imposed by the
governments of countries in which the Group operates could all have a material adverse effect on the Group.
Following the global financial crisis, some governments have faced increased debt and funding obligations
and have sought additional sources of revenue by increasing rates of taxation, royalties or resource rent taxes
such as the Minerals Resource Rent Tax (MRRT) and Petroleum Resource Rent Tax (PRRT) extension in
Australia. Such taxes may negatively impact the financial results of existing assets and projects and reduce
anticipated future returns and overall level of prospective investment in those countries. In addition, there
may be uncertainty around changes in and the enforcement of such taxes, which can make planning of future
investments challenging.
The Group transacts business in locations where it is exposed to a greater-than-average risk of overt or
effective expropriation or nationalization, including in countries where the government has previously (and, in
some cases, recently) expropriated assets held within the jurisdiction of other companies or where members of
the government have publicly proposed that such action be taken.
By way of example of increased governmental intervention of the type referred to in this risk factor, Prodeco
(which is 100 per cent. owned by Glencore) and the Colombian Institute for Geology and Mining
("Ingeominas") signed the eighth amendment in connection with the proposed Calenturitas mine expansion
project in 2010. In reliance upon the commitments agreed with Ingeominas in this eighth amendment,
Prodeco has undertaken the Calenturitas mine expansion project, which has resulted in significant investment
in the expansion of the Calenturitas mine generating new jobs in the region. A writ of initiation of proceedings
has been served on Prodeco alleging that the eighth amendment is null and void on the grounds that it has
harmed the Colombian state's interest. Prodeco and Glencore disagree with Ingeominas' allegations and
claims and Prodeco intends to vigorously defend itself against these as, having taken legal advice, it believes
these are without merit.
The Group's operations may also be affected by political and economic instability in the countries in which it
operates. Such instability could be caused by, among other things, terrorism, civil war, guerrilla activities,
military repression, civil disorder, crime, workforce instability, change in government policy or the ruling
party, economic or other sanctions imposed by other countries, extreme fluctuations in currency exchange
rates or high inflation.
The geopolitical risks associated with operating in a large number of regions and countries, if realized, could
affect the Group's ability to manage or retain interests in its industrial activities and could have a material
adverse effect on the profitability, ability to finance or, in extreme cases, viability of one or more of its
industrial assets. Although the Group's industrial assets are geographically diversified across various
countries, disruptions in certain of its industrial operations at any given time could have a material adverse
effect on the business, results of operations and financial condition of the Group.

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Document Outline