Introduction


Glencore Canada Corporation plays a major role in base and precious metals mining, processing, smelting and refining in Canada, with significant operations in Ontario, Québec and New Brunswick. The Company is a Canadian subsidiary of global resource giant Glencore Xstrata, headquartered in Switzerland. Glencore Xstrata is a leading producer and marketer of a broad range of mineral and agricultural commodities. It assets encompass more than 150 mine sites, metallurgical facilities, offshore oil production sites, and farms and other agricultural operations, with a workforce of approximately 190,000 employees and contractors.


Nickel Operations


Sudbury Integrated Nickel Operations


Within a 60 kilometer-long oval-shaped geological feature known as the Sudbury Basin are located the Sudbury Integrated Nickel Operations. These consist primarily of the Nickel Rim South Mine, the Fraser Morgan Mine, the Strathcona Mill, and the Sudbury Smelter located nine kilometers south of Nickel Rim. The Company and its predecessors have been mining nickel-copper ores in the Sudbury area since 1929.

Nickel and copper are the primary focus of operations at Nickel Rim South and Fraser Morgan. Other base metals such as cobalt and precious metals, such as platinum, are also produced.

The Strathcona Mill receives ore from Nickel Rim South, Fraser Morgan and third-party miners and produces two concentrate streams. One is a nickel-copper concentrate for use by the Sudbury Smelter; the other is a copper concentrate which goes to other Glencore operations for smelting and refining. The Sudbury Smelter converts the mineral concentrate into a high grade matte containing nickel, copper, cobalt and platinum group metals. This matte product is shipped to Glencore's Nikkelverk refinery in Norway for further processing.


Raglan Mine


Located in the far north region of Québec, the Raglan Mine consists of four underground mines and a concentrator, and stretches 70 kilometers from west to east. Nickel and copper are the primary metals. Raglan is notable for its high ore grades.

The mine site is linked by all-weather roads to an airstrip at Donaldson and to a concentrate, storage and ship loading facility at Deception Bay.


Copper Operations


The Kidd Mine in Timmins, Ontario mines a copper-zinc-silver deposit. At 2,900 meters, it is the deepest base metal mine in the world. The mine concentrator produces both copper and zinc concentrates. The Kidd Mine commenced operations in 1965 and has a current mine life extending until mid-2021.

Located approximately 150 kilometers east of the Kidd Mine, the Horne Smelter in Rouyn-Noranda, Québec produces copper anode from copper concentrate and discarded electronic equipment containing precious metals. It ranks as North America's largest processor of electronic scrap containing copper and precious metals.

The Canadian Copper Refinery, in Montréal, Québec, is a metal processing operation which has been in operation since 1931. It processes copper anodes for conversion into copper cathodes, and refines other metals extracted during the course of copper mining operations. These metals include gold (produced as bars), silver (produced as ingots), and platinum and palladium (produced as platinum-palladium sponge). The refinery also produces by-products including nickel sulfate, selenium and tellurium dioxide.


Zinc Operations


Placed into production in 2013, the Bracemac-McLeod Mine is a zinc-copper mining operation in the Matagami Mining Camp of Québec. Ore from the mine is processed at Glencore's Matagami concentrator, located 4.5 kilometers to the northwest.

In the Sudbury Basin, work focuses on the Errington and Vermilion polymetallic deposits, separated by a distance of 5 kilometers. These deposits contain zinc, copper, lead and precious metals and were the object of historical mining operations. Current baseline studies commenced in 2014.

In the Territory of Nunavut is the Company's Hackett River project, located 104 kilometers to the south of Bathurst Inlet. The project, considered to be one of the largest volcanogenic massive sulphide ore deposits in Canada, consists of three silver-rich zinc deposits and a satellite deposit.

Near the port of Belladune in northern New Brunswick is the Brunswick Smelter, which smelts zinc from concentrate. Zinc concentrates are transported to the mine via rail, or by water through Glencore's bulk-handling facilities at Belladune.

General Smelting is a zinc and tin smelting operation located in Lachine, Québec. The operation incorporates a major lead recycling program and provides specialized industrial construction and maintenance services for equipment used in sulphuric acid plants.

As holder of a 25% interest in and manager of Canadian Electrolytic Zinc, Glencore processes zinc concentrate from Glencore and third-party zinc mining operations at a facility in Salaberry-de-Valleyfield, Québec. Production consists of refined zinc metal and by-products of the process including copper and sulphide dioxide gas.


Statistics


koz = thousand ounces
kt = thousand tonnes
Mt = million tonnes
g/t = grams per tonne


Sudbury Integrated Nickel Operations and Raglan

2013 Production
47.1 kt nickel metal
0.5 kt nickel in concentrates
16.7 kt copper metal
37.6 kt copper in concentrates
0.7 kt cobalt metal


Sudbury Integrated Nickel Operations


Reserves as of December 31, 2013
Proved: 9.40 Mt grading 1.41% nickel, 2.42% copper, 0.03% cobalt, 1.28 g/t platinum and 1.47 g/t palladium
Probable: 5.40 Mt grading 1.36% nickel, 0.76% copper, 0.04% cobalt, 0.43 g/t platinum and 0.37 g/t palladium

Resources as of December 31, 2013
Measured: 11.9 Mt grading 1.81% nickel, 2.27% copper, 0.05% cobalt, 1.14 g/t platinum and 1.32 g/t palladium
Indicated: 19.1 Mt grading 2.42% nickel, 1.17% copper, 0.06% cobalt, 0.50 g/t platinum and 0.53 g/t palladium
Inferred: 17 Mt grading 1.7% nickel, 1.8% copper, 0.1% cobalt, 0.8 g/t platinum and 0.7 g/t palladium


Raglan Mine


Reserves as of December 31, 2013
Proved: 3.38 Mt grading 2.74% nickel, 0.76% copper, 0.05% cobalt, 0.74 g/t platinum and 1.85 g/t palladium
Probable: 3.20 Mt grading 4.01% nickel, 0.86% copper, 0.09% cobalt, 1.01 g/t platinum and 2.27 g/t palladium

Resources as of December 31, 2013
Measured: 4.28 Mt grading 3.00% nickel, 0.83% copper, 0.06% cobalt, 0.78 g/t platinum and 1.98 g/t palladium
Indicated: 9.86 Mt grading 3.51% nickel, 0.98% copper, 0.08% cobalt, 1.00 g/t platinum and 2.40 g/t palladium
Inferred: 21.0 Mt grading 3.1% nickel, 0.9% copper, 0.1% cobalt, 1.0 g/t platinum and 2.4 g/t palladium


Kidd Creek Mine


2013 Production
67.8 kt zinc in concentrates
36.9 kt copper in concentrates
3,234 koz copper in concentrates

Reserves as of December 31, 2013
Proved: 9.31 Mt grading 4.14% zinc, 2.05% copper and 51 g/t silver
Probable: 3.9 Mt grading 5.0% zinc, 1.8% copper and 53 g/t silver

Resources as of December 31, 2013
Measured: 17.3 Mt grading 4.49% zinc, 2.08% copper and 52 g/t silver
Indicated: 0.77 Mt grading 5.6% zinc, 1.2% copper and 36 g/t silver
Inferred: 3.4 Mt grading 7% zinc, 2% copper and 60 g/t silver


Bracemac-McLeod Mine


2013 Production
32.9 kt zinc in concentrates

Reserves as of December 31, 2013
Proved: 2.70 Mt grading 6.30% zinc, 1.04% copper, 29.0 g/t silver and 0.33 g/t gold
Probable: 1.1 Mt grading 7.1% zinc, 0.7% copper, 15 g/t silver and 0.4 g/t gold

Resources as of December 31, 2013
Measured: 2.18 Mt grading 8.90% zinc, 1.53% copper, 33.9 g/t silver and 0.46 g/t gold
Indicated: 1.1 Mt grading 8.5% zinc, 1.1% copper, 21 g/t silver and 0.5 g/t gold
Inferred: 2.6 Mt grading 9% zinc, 1% copper, 40 g/t silver and 1 g/t gold