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ENG LIS H
ADVANCING
TRADE
TRAFIGURA GROUP CORPORATE BROCHURE
BUSINESS
HIGHLIGHTS*
$97.2bn
198.4mmt** $39.1bn
Group revenue
Combined volume
of commodities traded
67%
146.3mmt $46.9bn+
Oil and Petroleum Products revenue
as a percentage of Group income
Oil and Petroleum Products
total volume traded
Financial lines available to Trafigura
33%
12.8mmt
2,744
Metals and Minerals revenue
as a percentage of Group income
Metals total volume traded
Shipping and chartering
fixtures per year
39.3mmt
5,248
Minerals total volume traded
Average number of employees
over the year
*Trafigura’s financial year runs from 1 October 2014 to 30 September 2015.
**Million metric tonnes.
Total assets
OV E RV I E W
ADVANCING
TRADE
Trafigura is one of the world’s leading independent
commodity trading and logistics houses.
Every day, around the world, Trafigura is advancing trade. We are developing markets,
investing in infrastructure, building connections and cementing alliances.
We see global trade as a positive force and we go further to make trade work better.
Whether you’re a producer, an existing partner or an end-user, our focus, commitment and global
resources can get you closer to your markets.
CONTENTS
Overview
02 Trafigura at a glance
04 How we’re advancing trade around the world
10 Business model and structure
Performance capabilities
12 Oil and Petroleum Products Trading
18 Metals and Minerals Trading
22 Shipping and Chartering
24 Puma Energy
26 DT Group
28 Impala Terminals
32 Mining Group
Corporate responsibility
36 Investing in responsible trade
38 Trafigura Foundation
In these pages we set out what we do and how we can add value for your business.
TRAFIGURA CORPORATE BROCHURE 01
OVERVIEW
TRAFIGURA
AT A GLANCE
Trafigura’s core business is physical trading and logistics; our assets and investments
complement and enhance these activities. Trafigura is managed through a global network of companies with central hubs and regional offices.
TR ADING ACTIVITIES
Metals and Minerals
Oil and Petroleum Products
We are one of the world’s largest traders by volume of oil and petroleum products. We operate in a fragmented
market where no single company has a leading position.
Trafigura is one of the few oil and petroleum products
traders with global presence and comprehensive coverage
of all major markets. Supported by offices worldwide, our
Oil and Petroleum Products Division operates from
regional offices in Beijing, Calgary, Geneva, Houston,
Johannesburg, Mexico City, Montevideo, Moscow,
Mumbai and Singapore.
We are one of the world’s largest metals and minerals
traders. We negotiate offtake agreements with miners
and smelters and invest in logistics through our subsidiary,
Impala Terminals, to improve market access for our clients.
Supported by offices worldwide, our Metals and Minerals
Division operates from regional offices in Geneva,
Johannesburg, Lima, Mexico City, Montevideo, Mumbai, Shanghai, Singapore and Stamford.
146.3mmt
52.1mmt
DIVISIONAL PERFORMANCE
DIVISIONAL PERFORMANCE
Oil and Petroleum Products volume traded Metals and Minerals volume traded 2015
2015
146.3
2014
120.4
2013
117.8
0
30
60
90
120
150
Oil and Petroleum Products volume traded (mmt)
Shipping and Chartering*
Our Shipping and Chartering desk is closely integrated into
Trafigura’s business model, providing freight services to the
commodity trading teams internally and trading freight
externally for third parties. Operations are based in regional offices in Athens, Geneva, Houston, Montevideo
and Singapore. All post-fixture operations are managed
from our Athens office.
02 TRAFIGURA CORPORATE BROCHURE
12.8
2014
11.3
2013
11.0
0
10
39.3
37.8
21.9
20
30
40
50
60
Metals and Minerals volume traded (mmt)
2,744
Shipping and Chartering fixtures *Financials relevant to Shipping and Chartering are consolidated within Oil and Petroleum Products/Metals and Minerals trading activities.
Metals
Minerals
OV E RV I E W
INDUSTRIAL AND FINANCIAL INVESTMENTS
DT Group
Impala Terminals
Mining Group
DT Group is a joint venture
between Trafigura and
Cochan Ltd. It develops
markets in sub-Saharan
Africa, with a particular
focus on Angola. It works
closely with international
and local partners in the
logistics, trading and natural resources sectors.
Impala Terminals is a multimodal logistics
provider focused on
export-driven emerging
markets. It owns and
operates ports, port
terminals, warehouses and transport assets. It has particular expertise in
providing efficient logistic
solutions in challenging
environments.
The Mining Group manages
mining operations, develops
projects, conducts technical
audits of existing and
potential partner projects
and provides advisory and
support services to
Trafigura’s trading desks,
trading partners and
Galena Asset Management.
50%
100%
100%
151
1,794 1,149
ownership
employees*
ownership
employees
ownership
Galena Asset
Management
Puma Energy**
Galena Asset Management
provides investors with
specialised alternative
investment solutions
through its range of
commodity funds. It
operates independently,
but benefits from the
Group’s insights into the
global supply and demand
of commodities.
Trafigura is a
48.8 percent shareholder
in Puma Energy, a global oil and
petroleum products
distribution company.
The company manages
over 18 million m3
throughput volumes of oil products via its
network of 89 bulk
storage terminals, 53 airports and over 2,250 service stations.
100%
48.8%
ownership
ownership
12
employees
7,500+
years in operation
employees
REGIONAL INFORMATION
NORTH AMERICA
EUROPE
MIDDLE EAST
ASIA & AUSTRALIA
5
14
3
13
Offices
Offices
Offices
Offices
246
1,252
22
948
Employees
Employees
Employees
Employees
LATIN AMERICA
AFRICA
29
11
Offices
Offices
2,199
581
Employees
Employees
*All employee numbers represent average annual totals.
**Puma Energy was deconsolidated at the end of the 2013 financial year at which point Trafigura
ceased to control Puma Energy.
l Regional
& Hub offices.
OVERVIEW
HOW WE’RE
ADVANCING TRADE
AROUND THE
WORLD
Trafigura helps make trade happen.
We move physical commodities from where
they are plentiful to where they are most
needed – reliably, efficiently and responsibly.
We are one of the world’s leading trading firms.
We have built a global business on
service and performance.
OV E RV I E W
Advancing trade by OPTIMISING
PHYSICAL
TRADING AND
LOGISTICS
Colombia
Connecting counterparties reliably, efficiently and responsibly.
We have built a global business in pursuit of one basic task – making
trade flow better. We approach it single-mindedly, bringing all our
energy and resources to bear.
We source, store, blend and deliver commodities according to
precise customer specifications. We manage diverse risks and complex
operational issues. We deploy market knowledge, industry expertise
and world-class infrastructure. Our trading teams have the agility,
intellect and ambition to succeed in increasingly regulated markets.
Switzerland
Advancing trade GLOBALLY AND
AT SCALE
At scale, across the world – we’re at the heart of the
global economy.
Trafigura is active in 37 countries on six continents. Our global network
supports our trading activities. Each of our offices has access to the
knowledge, resources and support of the Trafigura Group. We
continually invest in systems and processes that equip us to operate
effectively in complex markets.
Customers for oil and petroleum products include electric utilities,
refiners, major producers and state-owned oil companies. Metals and
minerals customers range from mining companies to smelters, refined
metals retailers and industrial manufacturers.
OVERVIEW
Advancing trade with INTEGRATED
SOLUTIONS
US
Simple, cost-effective and tailored to your needs.
Our services add value at every stage of the supply chain. We access
hard-to-reach locations and offer technical advice and financial support.
We build infrastructure and devise logistics to streamline and simplify
transportation. We operate at scale through state-of-the-art terminals.
We deliver on time, on-spec commodities wherever they are needed.
Singapore
Advancing trade with FINANCIAL
STRENGTH AND
RESILIENCE
A trading partner you can rely on, even in the toughest times.
Trafigura raises funds in the US, Europe and Asia-Pacific, and has lending
arrangements in place at 126 banks. Our strong balance sheet generates
economies of scale, supports infrastructure investment and gives us
scope to suppor t production with prepayment agreements.
Our prudent approach to risk management unlocks access in
volatile markets.
OV E RV I E W
Advancing trade by INVESTING IN
INFRASTRUCTURE
Brazil
Strategically located infrastructure gets you closer to
global markets.
We invest in ports, terminals and logistics to enhance our physical
trading activities. We build warehouses and storage facilities, operate
truck and barge fleets, purchase and charter ships, and develop mines –
whatever it takes – to make trade flow better.
Impala Terminals moves coal along the Mississippi, transports oil
from Colombia’s heartland, concentrates from Mexico and Peru, and
iron ore out of Brazil. Our midstream and downstream energy partner,
Puma Energy, manages storage and import terminals on five continents.
US
Advancing trade by
STRENGTHENING
SUPPLY CHAINS
Reducing trading costs and extending services.
Trafigura has built a global presence by challenging the status quo.
We operate in fluid, fast-changing markets. To succeed, we need to stay
agile and responsive.
Sustained success depends on consistently delivering leading-edge
services. We never stop investing in innovation. We develop trade routes
and product categories. We improve logistics. We introduce new
counterparties to global opportunities and strengthen connections
between suppliers and end-users.
OVERVIEW
Advancing trade with ENDURING
CUSTOMER
RELATIONSHIPS
Bahamas
Aligning our resources with your long-term priorities.
Trafigura is privately owned and fully independent. We relish that status.
It keeps us focused on what our customers want.
We work to develop strong, self-sustaining relationships with our
customers. We do that by understanding and then meeting their needs.
As a Trafigura customer you have a commercial partner that prioritises
your interests. We don’t just focus on the deal, we configure our business
to fit your changing trading requirements.
Tanzania
Advancing trade with STRATEGIC
PARTNERSHIPS
Strong relationships are built on firm foundations.
Strategic alliances with carefully selected partners extend the scope of
our activities. Financial partners invest alongside us. Industrial partners
contribute valuable, complementary skills and resources.
We are making more progress alongside our partners. We are buying
and building terminals, storage, and productive and processing capacity.
We are integrating assets, boosting performance and realising gains.
OV E RV I E W
Advancing trade by PROMOTING
TRANSPARENCY
India
Driving performance and stakeholder engagement.
We believe that transparency comes in many forms – from being open
about financial performance, to driving deeper stakeholder engagement,
to improving monitoring and reporting within the organisation and
across our supply chain.
As a major facilitator of global trade, we also believe that natural
resource wealth should be an important engine for economic growth
that contributes to sustainable development and poverty reduction.
Being open about how we manage natural resources gives the
populations in countries where we operate the tools to hold
governments and business to account.
Zambia
Advancing trade
SUSTAINABLY
Generating lasting shared value with local communities.
Trust is the most precious commodity. It has to be earned one day at a
time. We consult regularly with local communities. We work hard to
gain and sustain their confidence. This is the right way to do business
and it makes commercial sense. Our social licence to operate is reliant
on local goodwill.
Maintaining high safety and environmental standards is a
prerequisite. We put down roots wherever we operate. We work closely
with host governments, project partners and local communities to
ensure that the benefits of trade are shared.
BUSINESS MODEL AND STRUCTURE
OUR BUSINESS MODEL
CREATES VALUE
Our vision is of an increasingly interconnected and prosperous world in which commodities
pass seamlessly from their points of origin to points of need.
WHAT WE DO
We connect producers and end-users of commodities by performing transformations in space, time and form. We use our market knowledge,
logistics and infrastructure to move physical commodities from places where they are abundant to where they are in demand.
Transformations in space, time and form
SOURCE
STORE
We negotiate offtake agreements
with oil producers, refiners, mining
companies and smelters. We
invest in logistics that improve
market access for our suppliers.
We store petroleum products at owned and third-party
tankage. We store metals and minerals at Impala
Terminals and third-partyowned facilities.
BLEND
DELIVER
We blend physical commodities
to regional, market and customer
specifications in strategically
located terminals and
warehouses around the world.
We operate efficient, safe and high-quality logistics. We move commodities by barge, truck, rail, pipeline and vessel in
support of our core trading
activities and for third parties.
RELIABLY
EFFICIENTLY
RESPONSIBLY
We take a long-term perspective. We act as partner to nations,
corporations and communities. We earn their trust and build
sustained shared value.
We build infrastructure and develop
logistics to streamline and simplify
transportation. Operating at scale, we
deliver on time, on-spec commodities
wherever they are needed.
Health, safety, environmental and community
(HSEC) concerns guide our planning and dictate
decision making. Our robust approach to risk
management lowers the risk of participating in commodity markets.
ADVANCING TR ADE: HOW WE CREATE VALUE
BY MAKING MARKETS WORK
We use our global network and market
intelligence to connect supply and demand
for commodities at the best prices and ensure
delivery in the right place, at the right time, to the right specification.
BY OPTIMISING THE SUPPLY CHAIN
We have developed leading logistical
capabilities enabling us to source, store, blend and deliver oil and petroleum products,
metals and minerals reliably and efficiently
anywhere in the world.
BY MANAGING RISK
Our business model is resilient in the most
volatile market conditions. We systematically
hedge price risks and have created systems
and processes that enable us to manage a complex range of operational and financial risks.
BY SUPPORTING OUR CLIENTS
Our strong financial resources give us the capacity to add value for our customers
through integrated solutions incorporating
trading, finance, infrastructure investment
and risk management in the physical
commodity sector.
BY INVESTING IN INFRASTRUCTURE
We have invested in high-quality
infrastructure that supports our trade flows,
such as oil storage facilities, warehouses,
ports and transport.
BY SUSTAINING MARKETS
We aim to conduct our activities in a way that benefits local communities and society
at large. Responsible trade drives economic
and social progress.
OV E RV I E W
OUR STRUCTURE
DELIVERS VALUE
Trafigura’s core business is physical trading and logistics. Strategic investments in industrial
and financial assets complement and enhance this activity. We structure these investments
as standalone businesses.*
TR ADING ACTIVITIES
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a
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Owne
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PUMA
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PRODUCTS
TRADING
e
art
ch
*The size of each segment is not indicative of percentage of ownership or contribution to Trafigura’s bottom line.
**Puma Energy is a separate company to Trafigura, 48.79 percent of its share capital is owned by Trafigura.
PERFORMANCE CAPABILITIES
OIL AND PETROLEUM
PRODUCTS TRADING
Trafigura is one of the world’s largest independent traders of oil and petroleum
products, handling more than 3 million barrels a day. It is one of the few independent
energy traders with a global presence and comprehensive product coverage,
as well as extensive logistical and storage capability around the world.
Global trading teams based in Beijing, Calgary, Geneva, Houston,
Montevideo, Moscow and Singapore are supported by offices in
Johannesburg, Mexico City and Mumbai.
146.3mmt 67%
Total volume traded
Contribution to global revenue
Oil and Petroleum Products total volume traded (mmt)
146.3
2015
2014
120.4
2013
117.8
0
30
60
90
120
150
Trafigura has the inherent
strengths and the agility to respond
effectively to fast-changing markets.
We invest in world-class assets and
logistics to streamline and simplify
physical delivery.
SERVICE AND PERFORMANCE
As a global trading house we have a detailed overview of macro
and micro trends. As physical traders, we experience economic
fundamentals first hand.
Oil and petroleum products markets are becoming more regulated
and more transparent. The heightened volatility, lower prices and
contango price structures we saw in 2015 presented new trading
opportunities and sharpened the demand for excellent logistical and risk
management services.
Trafigura has the inherent strengths and the agility to respond
effectively to fast-changing markets. We invest in world-class assets
and logistics to streamline and simplify physical delivery. Our integrated,
global trading desks focus on delivering relevant, distinctive and
innovative services and outstanding performance.
CRUDE
In the crude oil market, we use our global presence, market knowledge
and logistics capabilities to balance supply and demand, optimise supply
chains and service the needs of our customers around the world.
Globally, we store and transport over one and a half million barrels of
crude daily.
Trafigura’s crude team has strong technical capabilities. This,
combined with our deep understanding of physical flows, allows us to
respond rapidly to changing market dynamics and non-standard crude
oil opportunities.
We source oil from a variety of counterparties including public
production companies, oil majors and national oil companies (NOCs).
We also provide distribution solutions for producers, and assist refineries
by supplying tailored shipments and specialist financing.
We have a substantial North American business with a longstanding blending hub in Louisiana and a logistics-based offering in
Texas. Our extensive US domestic lease activity in the Eagle Ford Shale
and the Permian regions continues to expand.
Our thriving business in Africa encompasses both significant
exports and imports. In Asia, we are an active participant in both sweet
and sour grade trading. We continue to grow our assets in the region.
We control tankage at strategic locations in Europe and
supplement this with short- and long-term leases. We have access to
long-term supplies of tradable oil streams and excellent relationships
with regional refiners.
P E R F O R M A N C E C A PA B I L I T I E S
Medium-range oil vessel, Bahamas.
GASOLINE
The gasoline team manages one of the world’s largest seaborne gasoline
books. We have an active market presence in components and extensive,
strategically located tankage.
We source, store, blend and deliver cost-effective gasoline
solutions to our customers around the world, emphasising great service
and optimal performance. We have built up key long-standing
relationships with NOCs, major refiners, and downstream partners in
every core trading region.
We maintain major blending hubs on the Gulf Coast, in the
Mediterranean and Singapore and lease tankage globally. We have a
considerable ocean-bound charter fleet and are active in the pipeline
trade. These assets give us the capacity to respond to our customers
with considerable flexibility.
Our integrated offering in the Americas is built on strong
relationships with US refiners and substantial storage capacity in the
Gulf and Caribbean basin. We have some significant customers in
Mexico, Colombia and Brazil and we supply fuel to Puma Energy’s
extensive distribution network in Central America.
FUEL OIL
Our fuel oil trading team combines global presence, market knowledge
and efficient logistics to connect producers and end-users. We serve the
needs of our customers by blending in and shipping between our
14-million barrel global network of leased and owned storage facilities
in Rotterdam, Singapore, Fujairah, Panama and Houston.
Our trading and operations teams work closely with customers
to bring value to the supply chain. Together with our team of analysts
we are positioning ourselves to capture opportunities in changing
market conditions.
MIDDLE DISTILLATES
Middle distillates are traded in integrated global markets. Trafigura’s
network operates from desks in Singapore, Geneva and Houston,
managing flows between refining and export centres in the US, Middle
East and Asia and the diesel import markets of Africa and Europe.
Our mid-distillates trading operation covers jet fuel, diesel and gas
oil. It leases storage globally and uses tankage to blend products to local
specifications and premium-priced fuels. We trade the full range of
distillates, from low to high sulphur.
NAPHTHA
Trafigura is one of the world’s most active naphtha traders and one of
the few with a US export facility. We source, store and blend all the most
actively demanded products and grades, supporting trade flows to the
Far East, South America, Africa and Europe.
Our naphtha teams operate in Singapore, Geneva and Houston
with local offices managing origination and business development.
We work with colleagues in Dubai, Montevideo, Puerto Rico and
West Africa.
We focus on long-term relationships and work with our customers
to meet changing needs. Our broad product coverage allows us to take
advantage of naphtha’s high substitutability. The naphtha teams work
closely with the gasoline and LPG desks to assess relative pricing for
different products and grades.
The Golar Ice (left), chartered by Trafigura, supplying LNG cargo to a Floating Storage and Regasification Unit (FSRU) off the coast of Egypt.
CONDENSATE
Trafigura is the largest condensate trader globally and the
only independent trading company with a dedicated condensate desk.
We trade in all parts of the world, bringing to market a wide variety
of grades.
We use terminals in the Arabic Gulf, the Baltic region and the Far
East for blending, and building or breaking bulk.
We have offtake agreements with numerous oil and gas producers.
We are developing new uses for condensates with a diverse customer
base that includes refineries, splitters and petrochemical facilities.
LIQUEFIED PETROLEUM GAS (LPG)
Trafigura is a leading trader in the rapidly evolving LPG market.
The US is consolidating its position as the world’s biggest LPG
exporter. Trafigura is a producer, shareholder and has exclusive
throughput rights at the Buckeye Partners terminal hub (a 1.1 million
barrel storage, production and export facility in Corpus Christi, Texas).
Our global presence and very strong logistical system support our
trading activities. Effective vessel rotations, high-traded volumes, and
rapid decision making allow us to prioritise clients’ requirements and
respond quickly to changing market conditions.
As an LPG producer and controlling our own storage facilities we
are able to tailor cargo specifications to suit a wide range of customers,
from petrochemical consumers and blenders to autogas and bottled
gas consumers.
In addition to our facility in South Texas we work closely with our
industrial investment, Puma Energy, who own and operate LPG storage
and distribution networks in strategic locations throughout the world.
Working alongside our traders we have a specialised team of LPG
operations and chartering professionals who manage a large and rapidly
evolving fleet of LPG tankers, ranging from small pressurised up to Very
Large Gas Carriers (VLGCs).
LIQUEFIED NATURAL GAS (LNG)
Trafigura is the world’s leading independent trader in this rapidly
growing energy market. The LNG team is based in Geneva, Singapore
and Houston. It works closely with our regional offices as well as our
natural gas and coal desks. Trafigura’s LNG trading activity is well
diversified globally with a focus on Latin America, Europe, Middle East,
Africa and Asia.
In spite of weak growth over the past few years, the LNG industry
has been undergoing a liquidity revolution allowing independent traders
to increasingly add value. In part, this is due to the uncertainty of new
supply and the emergence of new buyers.
Our strategy is to maintain profitable volume growth, to provide
innovative and flexible products to our clients and to invest
opportunistically in infrastructure where we can add value.
BIODIESEL
We are committed to promoting biodiesel as a sustainable alternative
to fossil fuel-based diesel and are active on all the major international
trade routes. Our biodiesel desk manages a significant proportion of the
traded volumes in this complex market.
The biodiesel desk is fully integrated within our global distillates
team. We source supplies globally, both directly from agribusinesses and
through the professional markets. We have built strategic partnerships
with producers in the Americas, Europe and Asia.
We have the ability to blend, store and transport biodiesel and
ethanol anywhere in the world. Our customers include oil majors,
refineries and downstream suppliers.
LPG vessel at Corpus Christi terminal, Texas, US.
CORPUS CHRISTI:
TERMINAL AND CONDENSATE SPLITTER
STR ATEGY
EXTENDING
OPTIONALITY
BY INVESTING IN
INFRASTRUCTURE
16 TRAFIGURA CORPORATE
16 TRAFIGURA
CORPORATEBROCHURE
BROCHURE
OUR JOINT VENTURE WITH BUCKEYE
POSITIONS US TO TAKE ADVANTAGE OF
CHANGING MARKET CONDITIONS IN
US OIL AND PETROLEUM MARKETS
In 2014, we sold a controlling stake of
our Corpus Christi terminal complex to
Buckeye Texas Partners (BTP). Buckeye
Partners now owns 80 percent of this joint
venture; we retain a 20 percent equity
interest. The sale released USD860 million
for reinvestment in other business activities.
Strategically, we have retained
exclusive commercial rights to use
the terminal.
BTP’s vertically integrated system of
midstream assets is strategically located
on the Gulf Coast, in Corpus Christi, Texas,
close to Eagle Ford production, one of
the most prolific and economically
advantageous shale plays in the US.
The terminal has 6 million barrels
of tankage for varied energy products,
including crude oil, LPG, distillate and
naphtha. There is pipeline connectivity
to Eagle Ford and a deep-draft marine
terminal that accommodates ocean-going
vessels. It also includes one of the largest
refrigerated LPG storage facilities in the US.
In 2015, BTP commissioned a
state-of-the-art condensate splitter.
This 50,000 barrel per day processing
facility is the second standalone splitter
to be completed in the US and gives us
the ability to refine crude and condensate
locally and export the products globally.
Energy markets are volatile and highly
cyclical. To operate successfully across
the cycle we need to maintain significant
flexibility in our trading portfolio. This
thinking underpinned Trafigura’s initial
investment in the Corpus Christi terminal.
By retaining our rights to make use of this
infrastructure we have maintained our
optionality to transport crude oil or
products to the best available home.
In addition, we secured a reliable partner
and operator with strong safety credentials
and extensive experience. Buckeye Partners
LP has been a specialist in this sector for
over a century.
Our partnership with Buckeye
connects us with a company that operates
well over 100 terminals in the US. Being
aligned with such a business will enhance
our ability to move into new US markets
quickly when opportunities arise.
6m
Barrel storage capacity
50,000bpd
Capacity condensate splitter
Trafigura and Buckeye Partners LP’s new condensate splitter at Corpus Christi Facility, Texas, US.
Main image: New condensate splitter and refrigerated LPG storage units at Corpus Christi Facility, Texas, US.
IMPLEMENTATION
PERFORMANCE CAPABILITIES
METALS AND
MINERALS TRADING
Trafigura is one of the world’s largest metals and minerals traders.
We are building global connectivity between miners, smelters and
refined metal fabricators.
Global trading teams are based in Geneva, Montevideo, Singapore
and Stamford and supported by offices in Johannesburg, Lima,
Mexico City, Mumbai and Shanghai.
33%
52.1mmt
Contribution to global revenue
Total volume traded
Metals and Minerals total volume traded (mmt)
12.8
2015
2014
11.3
2013
11.0
0
10
39.3
37.8
21.9
20
30
40
50
60
Metals Minerals
Trafigura is investing for the long
term together with our strategic
financial partners. By growing
traded volumes we stand to benefit
from increasing economies of scale.
We are scaling up our business
where we can.
STRATEGIC PARTNERSHIPS AND ECONOMIES OF SCALE
Slower Chinese growth and the managed transition from export-led
manufacturing towards domestic consumption and services has had a
big knock-on effect, with the inevitable deep reductions in demand for
international metals and minerals. Simultaneously, regulators
worldwide are tightening controls as they seek to tackle climate change
and cap emissions.
These factors make for difficult short-term trading conditions, but
there will also be value-based investment opportunities for committed
market participants. Trafigura is investing for the long term together
with our strategic financial partners.
By growing traded volumes we stand to benefit from increasing
economies of scale. We are scaling up our business where we can.
We are offering financial assistance to producers through offtake
agreements and developing downstream outlets that underpin volume
growth. We enter strategic alliances and invest in infrastructure that
streamlines and simplifies supply chains.
CONCENTRATES
Trafigura is the market leader in copper, lead and zinc concentrates
trading, and a leading alumina and nickel trader. We source copper, lead
and zinc from resource-rich areas in Africa, Australia, Canada, China,
Europe, Indonesia, South America and the US. Our alumina comes from
refineries in Australia, Brazil, China, Europe, India and Jamaica.
Our Geneva-based trading teams are supported by regional and
local offices around the world. We work closely with our partners to
develop long-term relationships and to guarantee a consistent, highquality service and reliable supplies.
On the demand side, we are creating a more coherent supply chain
for our customers using geographical and quality arbitrages.
Some significant investments are furthering volume growth. Our
joint venture with Mubadala of Abu Dhabi is overseeing a doubling in
capacity at the MATSA concentrates mining complex in Spain. The mine
links to our state-of-the-art logistics and warehousing operation at
Huelva. In China, in a significant strategic partnership with Jinchuan
Group, we have acquired a minority stake in a new copper smelter and
signed offtake agreements covering both copper concentrates and
refined metals.
Copper cathodes, Ndola, Zambia.
In lead and zinc concentrates, we are building on our market leadership
by sticking to our established strategy of carefully selecting
counterparties and maintaining mutually beneficial long-term
relationships with suppliers and producers. We are also developing
strategic partnerships with aluminium smelters, involving the sale of
alumina and the purchase of aluminium.
In 2015, Trafigura established a trading operation for nickel
concentrates and mixed hydroxide intermediate product (MHP). This
new trading desk is laying the foundations for a long-term sustainable
business by growing volumes, and diversifying its geographical scope
and customer base. We are already the second largest trader by volume.
Through Impala Terminals, we are investing in first-class logistics
and infrastructure to facilitate the safe, prompt passage of product to
market. We combine our warehousing, blending and transport
capabilities to aggregate base tonnage, align blends with specific import
and customer requirements, and transport products to Western Europe,
China, South East Asia, the US, Russia and Japan.
REFINED METALS
Trafigura is the world’s second largest independent refined
metals trader.
Our refined metals department trades seven distinct commodities
– copper cathodes, copper blister, aluminium, lead, zinc, nickel and silver.
We also trade semi-finished products such as copper wire rods and
aluminium billets.
The refined metals and concentrates teams collaborate closely,
using a variety of tools to facilitate trading, including structured finance
and tolling models.
Around 40 percent of total refined metals demand is from China.
Unlike many other Western metal traders, we operate through a
domestic trading subsidiary in the country.
We maintain a global presence. Our knowledge on the ground
allows us to source metals swiftly and cost-effectively worldwide. In
India, our online refined metals procurement platform, Lykos, is
changing the way small- and medium-sized manufacturers buy metal.
Refined metals are traditionally short term, with almost all
contracts being fixed on an annual basis. Increasingly, we are negotiating
multi-year contracts and building long-term trading relationships with
key counterparties.
IRON ORE
We trade the whole spectrum of iron ore products and grades, including
fine, low-grade and high-grade lump and pellet feed. Our origination
teams operate in all the main exporting countries.
We use our extensive international network to connect specific
buyers with particular grades of stock. We deal with the major producers
in key exporting countries such as Australia and Brazil as well as with
smaller mining concerns in India, South Africa, Mexico and Chile.
Our sales teams in China have built up strong contacts with steel
mills and local trading houses. We have expanded our value proposition
to global steel producers by sourcing coking coal for them through the
coal desk.
Impala’s terminal network provides the business with an important
competitive advantage. The 50-million tonne capacity Porto Sudeste
export facility south of Rio de Janeiro in Brazil, jointly controlled
with Mubadala, commenced operations in August 2015. The facility
provides a vital international gateway for miners in the country’s
iron ore quadrangle.
COAL
We have steadily built up traded volumes in recent years to become one
of only two truly global market operators. Our focus is on developing
advantageous origination strategies, novel trading flows, and innovative
delivery methods.
We apply these approaches across the full range of thermal coal
qualities, in all the major points of origin, and across all the major global
sales markets. We also serve coking coal customers across the world and
are growing our presence in coke and petcoke.
The coal market has become more challenging in the context of
weaker Chinese growth, competition from alternative energy sources,
and a less favourable regulatory environment in various countries.
Nevertheless, the market continues to generate opportunities for
Trafigura, given our global sales network and our strength and reliability
as a contractual counterparty.
Our positions continue to evolve with changing trade patterns and
pricing among various qualities. Our approach remains fundamentally
unchanged: presenting valuable intermediation and logistics services to
our clients and exercising arbitrage opportunities presented by an
extensive physical trading position.
JINCHUAN GROUP:
STRATEGIC PARTNER
STR ATEGY
JOINING
FORCES
TO CONSOLIDATE
MARKET
LEADERSHIP
TRAFIGURA HAS EMBARKED ON A JOINT
VENTURE WITH JINCHUAN GROUP TO
ACQUIRE A SHARE IN ONE OF ITS MAJOR
CHINESE COPPER SMELTERS
Trafigura and Jinchuan Group enjoy a
healthy business relationship founded on
trust and mutual respect. We have built
closer ties over several years by striving
for consistently excellent service.
In 2015, we became a shareholder in
a subsidiary of Jinchuan Group, acquiring a
stake in one of China’s largest standalone
copper smelters, in Guangxi province.
Our 30 percent shareholding is linked to a
multi-year commercial agreement. Trafigura
will deliver 30 percent of the new facility’s
concentrates and offtake 30 percent
of its copper cathode production.
The partnership brings together
two companies with solid credentials
and complementary strengths in the
copper market.
The new entity combines strong
capabilities in metals production, raw
materials sourcing, product marketing,
financing, risk management and logistics.
Jinchuan is China’s third largest
copper producer. Its heartland is in the
north west of the country, from where
it serves the domestic market. However,
high transportation costs to and from that
location, along with supply concerns about
domestically produced raw materials, have
constrained its business model.
In 2013, it completed construction of
a 400,000 tonnes per year smelting facility
on China’s south coast. The smelter is
ideally located for cost-effective access
to concentrates available from offshore
suppliers. It is also perfectly positioned to
sell its products to both the domestic and
export markets.
Trafigura’s strong network of offshore
concentrates suppliers will allow the joint
venture to optimise its raw materials
sourcing pool. Our chartering department
will give it logistical economies of scale.
The joint venture will also have access to
our pool of international financing contacts
helping bring down its overall cost of
financing and diversify its financing channels.
Our risk management capabilities will help
it trade effectively in today’s volatile markets.
China currently accounts for 65 percent
of Trafigura’s copper concentrates sales, a
proportion set to increase as growth in the
global copper market is centralised in China.
In securing such a renowned and strongly
established long-term partner in China,
Trafigura takes its metals business to the
next level.
With this transaction, it became the
first international trading firm to make a
major co-investment in a Chinese domestic
smelting business. The partnership has
raised our profile in the copper market and
the two companies are actively discussing
broader cooperation in future.
400,000t
Smelting capacity per annum
Inside Jinchuan Group’s copper smelting facility in Fangchenggang, China.
Main image: Copper electrorefining at Jinchuan Group’s copper smelting facility in Fangchenggang, China.
TRAFIGURA
TRAFIGURA CORPORATE
CORPORATE BROCHURE 21
IMPLEMENTATION
LOGISTICS CAPABILITIES
SHIPPING AND
CHARTERING
Trafigura Maritime Logistics’ fleet of owned and chartered vessels transports
essential raw materials and commodities across the world’s oceans. Its wet
and dry freight teams operate both as service providers securing competitive
and reliable freight for in-house oil, and metals and minerals traders, and as
profit centres in their own right.
All commercial shipping and chartering activities are managed out
of Trafigura’s key regional offices. All post-fixture operations, which
include issuing voyage orders, completing stowage plans,
negotiating with port agents and handling demurrage claims are
managed centrally from our Athens office.
2,744
Shipping and Chartering fixtures per year
(2014: 2,350+)
2015 Wet and Dry Freight Activity
Tonnage shipped
Number of fixtures
Average time-charter fleet
Wet
95mmt(1) + 11mmt(1)(a)
2014: 60mmt(1)
1,959
2014: 1,600
75(3) + 9(4)
2014: 35-40(3)
Dry
32mmt(2)
2014: 33mmt(2)
785
2014: 754
40(3)
2014: 40(3)
Includes both internal and external usage to other owners/operators.
(a) Additional 11mmt includes small tankers, bitumen and gas tonnage previously not
registered in 2014.
(2)
Includes 21mmt external customer tonnage.
(3)
A vessel on hire for longer than 3 months.
(4)
Gas related time-charters for longer than 3 months.
(1)
With more than 20 years’ experience
as the exclusive carrier of Trafigura
Group cargo, we understand the
importance of a reliable freight
partner when moving essential
raw materials and commodities.
A RELIABLE PARTNER FOR OCEAN FREIGHT TRANSPORT
Trafigura Maritime Logistics is a provider of ocean freight services
carrying multiple commodities on various ship types and sizes
worldwide. We use both time and voyage charters to adapt to our
customers’ needs and deliver cargo reliably and efficiently.
With more than 20 years’ experience as the exclusive carrier of
Trafigura Group cargo, we understand the importance of a reliable
freight partner when moving essential raw materials and commodities.
CAREFUL RISK MANAGEMENT
Our freight trading teams lease time-chartered vessels and negotiate
spot fixings to manage physical freight positions for Trafigura and its
customers. Our global presence gains us strong insights into freight and
commodity market trends. We manage risk using bunker swaps and
Forward Freight Agreements (FFAs).
COLLABORATING WITH TRADING TEAMS
Our commodity traders rely on real-time freight pricing to structure
transactions for their customers. Freight specialists are often embedded
in our trading teams.
Our freight professionals are in constant dialogue with the various
trading desks. Knowledge of traders’ requirements helps shape freight
trading strategy and capacity planning.
Trafigura’s trading and freight activities also combine to extend
Trafigura’s service to customers. Our clients can elect to buy
commodities and freight together, on Cost, Insurance and Freight (CIF)
instead of Free On Board (FOB) terms.
WET AND GAS FREIGHT
We charter a range of tanker tonnage to meet our physical delivery
requirements for the worldwide transportation of oil and petroleum
products.
Our wet freight desks deal in all vessel sizes, from 2,000 to 300,000
deadweight tonnes (DWT) tankers. The vessels trade in every market
segment, including crude, clean, dirty, LNG and LPG.
We fix vessels on spot voyage, negotiate Contracts Of
Affreightments (COAs) and run a portfolio of time-charter ships with
period commitments spanning 30 days to three years. We work closely
with Puma Energy, especially in Africa and Latin America, to manage
delivery schedules and optimise fleet utilisation. The wet freight desk
trades ships around the world fixing both external and internal cargoes,
aiming always to maximise the inherent value of the trading platform.
Stena Primosk oil tanker.
DRY FREIGHT
Around 35 percent of Trafigura’s annual shipped tonnage is in dry bulk
commodities such as coal, iron ore and mineral concentrates.
These cargoes are shipped using a combination of time charter and
voyage charter. We control on average 40 ships on time charter and
50 ships on voyage charter at any one time.
Internally, we act as a service centre to Trafigura’s Metals and
Minerals trading desks. Externally, we offer freight services to thirdparty customers including miners, steel mills and other trading houses.
RESPONSIBLE SHIPPING
As a trading company that regularly buys and sells cargo from and to oil
majors, we make sure we meet their rigorous standards for shipping and
freight. And we go further, with strict rules governing certification and
vessel quality.
A strict vessel screening policy makes safety top priority. We use both
internal and external vessel vetting services to make sure that we only
charter vessels that are technically suitable for the intended trade.
We require every vessel we charter to have earned at least two
approvals from oil majors using the Oil Companies International Marine
Forum (OCIMF) Ship Inspection Report (SIRE) Programme over the
previous six-month period.
We also specify that any tanker we charter must be double-hulled.
We have an age-limitation policy that limits chartering to ships that are
less than 25 years old. And we ensure that all our vessels are classified
by an accredited member of the International Association of
Classification Societies (IACS).
STR ATEGIC PARTNERSHIP
PUMA ENERGY
Puma Energy is a global oil and petroleum products distribution company
backed by strong infrastructural resources in 46 countries across five continents.
The company manages over 18 million m3 throughput volumes of oil products via
its network of 89 bulk storage terminals, 53 airports and over 2,250 service stations.
Its downstream sales volumes reached close to 19 million m3 in 2015.
7.6m m
18.0m m
7,500+
2,250+
3
Storage capacity
Employees
3
Throughput volumes in 2015
Retail sites
Puma Energy storage facility in Mackay, Australia.
FUELLING PROGRESS
Puma Energy is Trafigura’s leading downstream trading partner for oil
and petroleum products. It operates independently but gains synergies
from our access to global fuel markets. Trafigura owns 48.8 percent of
the company.
Puma Energy is fuelling progress by getting oil products to parts of
the world where they make a real difference to people’s lives. It has built
a successful global business by doing the simple things well. It delivers
product when and where it is needed, and invests in storage, supply
systems and people to make that happen.
This is a new breed of oil major. Puma’s unique business model
focuses on international reach and downstream delivery. It integrates
fuel supply structures and invests in infrastructure to maximise
opportunities in high-growth markets. It is tapping into energy needs in
Africa, Central and Latin America, the Caribbean, Asia Pacific and Europe.
Puma Energy service station, Botswana.
GROWING ORGANICALLY AND THROUGH ACQUISITION
Puma Energy has an ambitious, entrepreneurial culture. The company has
expanded rapidly though a combination of organic growth and acquisition.
It has repeatedly proven its ability to incorporate new businesses
into its portfolio, both in existing markets and in new territories and
regions. Puma Energy built its reputation with a track record of
successful growth in emerging economies. Today, some of its largest
retail networks are in fast-growing developed economies.
It built a substantial presence in Australia with multiple acquisitions
in 2013. In 2015, it acquired BP’s bitumen operations. It is one of the
country’s largest independent retailers and a major wholesale
distributor across the region.
GLOBAL HUB TERMINALS AND REGIONAL STORAGE
Strategically located bulk storage terminals provide the backbone for
Puma Energy’s fuel distribution businesses. The Bayamón terminal in
Puerto Rico serves the US, Caribbean and Central American markets.
Other terminals are in the Jebel Ali Free Zone in the UAE and off the
southern coast of Malaysia at the epicentre of global trade routes.
The company has strong midstream capabilities at the Sillamäe
and Paldiski terminals in Estonia. It is investing here to grow throughput
of light oils, shale oil, petrochemicals, LPG, gasoline and aviation fuels.
A global network of regional facilities supplements the hub
terminals. In the UK, the network includes a recently acquired 1.4 million m3
storage facility at Milford Haven, one of the largest sea-fed, terminals in
North-West Europe. In Africa, it is completing major construction
projects in Mozambique and Angola. In 2015, it opened the world’s
largest conventional buoy mooring (CBM) facility in Luanda Bay,
providing security of fuel supply to and from Angola and Africa.
PRODUCT DIVERSIFICATION
Business lines and retail customers around the world trust Puma Energy
to deliver high-quality fuels safely, reliably and at a fair price. It has
extensive business-to-business distribution networks and contracts
with oil majors and leading oil traders.
Its fuel delivery services support economic development and
national infrastructure programmes. In lubricants, it is the world’s
largest distributor of Castrol products. It is a leading integrated global
bitumen distributor with facilities in Angola, Central America, Malaysia,
Vietnam, Spain, Australia and the UK.
The company supplies mining businesses and has long-term
contracts with large power generation companies around the world.
Multinational construction companies rely on Puma Energy fuels in
multiple territories. It is the exclusive fuel supplier to the Panama Canal
Authority for the Panama Canal expansion programme.
The aviation business continues to grow. Puma Aviation
International now has operations in 53 airports in 19 countries.
It services major international carriers, such as Delta, Air France/KLM,
Qatar Airways as well as the US Air Force.
For further information please visit www.pumaenergy.com
INVESTMENT CAPABILITIES
DT GROUP
DT Group is a joint venture between Trafigura and Cochan. It develops
markets in sub-Saharan Africa, with a particular focus on Angola. It works
closely with international and local partners in the logistics, trading and
natural resources sectors.
With offices in Geneva, Luanda and Singapore, DT Group’s interests
span trading, shipping infrastructure, asset management, logistics
and mining.
151
4
$1.8bn
$3.9bn
People employed globally
Total assets
Owned vessels
Sales revenue
DT Group ‘Ana Nzinga’ vessel off the coast of Angola.
INVESTING IN AFRICA’S FUTURE
DT Group is developing and growing a range of businesses predominantly
focused on Angola. The Group is a 50:50 joint venture leveraging the
market capabilities and financial strength of Trafigura together with the
local knowledge networks and specialist expertise of Cochan.
DT Group’s flexible business model allows it to seed, develop and
scale up a wide array of projects. It is helping to develop new markets in
Angola and beyond by participating in transformative projects in
infrastructure, logistics and economic diversification.
DT Agro pilot agricultural project at Catumbela, Angola.
DEVELOPING MARKETS IN ANGOLA
Angola is a country with enormous potential. It has a growing population
and abundant natural resources, but it still lacks infrastructure and is
overly dependent on energy exports.
The Government is investing in projects to diversify the economy
beyond the oil sector. DT is involved in key sectors that support Angola’s
economic development. The Group maintains flexibility by bringing
international specialists and local partners together for each of its
projects.
DT Group activities span three main areas. It provides trading
services that leverage Trafigura’s international presence to connect
Angola with global markets. It operates logistics businesses that manage
infrastructure and transportation. In the natural resource arena, it is
developing agriculture and mineral assets.
TRADING SERVICES
DT Group trading entities, DTS Refining and DTS Commercial, trade
gasoil, gasoline, jet, LPG, bunker fuel and bitumen with Sonangol,
Angola’s state-owned energy company.
SHIPPING
DT Group’s fleet of four bunkering vessels is chartered to Sonangol
Distribuidora. Its vessels transport gasoil from Sonangol’s storage
facility at Lobito to Angola’s offshore platforms. Trafigura and
Puma Energy’s shipping operations team also manages DT vessels on
time charter around the West African coast.
INLAND LOGISTICS
Lobito is set to become a regional hub port for Angola, second only
to Luanda.
Lobito port terminals have direct access to the recently upgraded
Caminho de Ferro de Benguela (CFB) railway line, which traverses
Angola from west to east. The rail link equips the port as a centre for
international trade – not just for Angola, for neighbouring countries too.
DT Group subsidiary, Angofret, has constructed two multifunctional
logistics platforms at stations along the railway line. New platforms at
Huambo and Luena will include container stacking facilities and
technology for cargo logistics.
HARNESSING NATURAL RESOURCES
Angola was once the breadbasket of Southwest Africa, but the civil war
devastated its agricultural base. Now subsistence farming predominates;
farmland is parcelled up into uneconomic smallholdings.
DT subsidiary, DT Agro, is investing in the agribusiness sector. It
owns a 90-hectare pilot project in Catumbela growing fruit and
vegetables. The site also includes a packing plant. This project is
demonstrating how technology, modern processes and vertical
integration can radically improve yields.
BUILDING BETTER FUTURES
The social dimension is a key element in DT Group’s business model. Its
activities are deeply rooted in Angolan society. It recruits locally and
builds in-house talent through training and development programmes.
It pursues initiatives that promote social inclusion, social
entrepreneurship and self-reliance. It has set up and endowed the
DT Foundation as an independent philanthropic organisation to deliver
targeted programmes in support of these objectives.
For further information please visit www.dtsholding.com
LOGISTICS CAPABILITIES
IMPALA
TERMINALS
Impala Terminals is a multimodal logistics provider focused on export-driven
emerging markets. It owns and operates ports, port terminals and warehouses
which, combined with its transport assets, provide end-to-end logistics solutions
for dry and liquid bulk cargoes, general cargo and containers.
$2.6bn+
18
25+
1,794
Total assets
Locations worldwide
Countries of operation
Employees
Impala’s multimodal capabilities
connect producers, end-users and
international markets with a key
focus of increasing efficiency.
PROFESSIONAL OPERATIONS IN CHALLENGING ENVIRONMENTS
Impala Terminals provides logistics and infrastructure for Trafigura and
third-party clients. It has a substantial presence in emerging markets
and particular expertise in providing efficient logistic solutions in
challenging environments and hard-to-reach locations.
Impala is a fully integrated terminals and multimodal logistics
service provider. Its major investments are in terminals with connected
logistics. It adds value through its ability to handle metals and minerals
reliably, efficiently and securely. Few can match this combination of
attributes.
Impala’s multimodal capabilities connect producers, end-users and
international markets with a key focus of increasing efficiency. Its
logistics solutions across Africa and in Brazil, Colombia, Peru and Spain
integrate barge, rail, storage and direct berth access. In Colombia,
Impala is establishing a fully multimodal logistics system linking major
ports with the economic heartland and resource-rich regions.
Significant emphasis is placed on conducting operations in a safe
and environmentally responsible manner and with particular attention
paid to working closely with our surrounding communities through
engagement and a focus on recruiting local people wherever possible.
DEVELOPING MULTIMODAL LOGISTICS
Impala’s USD1 billion investment in Colombia is transforming the
Magdalena River into a multimodal logistics corridor, with over 130
double-hulled, dry and wet cargo barges to transport coal, oil and other
liquid bulk products, containers and other commodities to and from the
main Colombian ports on the Caribbean Sea. In the West of the country
our FDP rail concession is moving cargo between Buenaventura on the
Pacific coast and inland destinations. Our purpose-built river port at
Barrancabermeja acts as a consolidation hub, connecting river, road and
rail cargoes.
Impala’s operation in Callao, Peru’s leading commercial port, is a
beacon for quality and safety. Metal concentrates are transferred from
a covered yard via a fully enclosed conveyor, to a dedicated port berth.
The system greatly simplifies dry cargo loading, replacing around
150,000 truckloads of metal concentrates annually. Callao’s advanced
processes and quality control are replicated at Manzanillo in Mexico and
other major terminals.
Impala’s new terminal under construction in Huelva, Spain.
In Africa, Impala is improving service quality and reliability in some of the
most challenging operating environments. It has upgraded facilities at
Ndola, Zambia and refurbished its port terminal at Dar es Salaam, where
multimodal connectivity links two-way traffic by road, rail and sea.
INVESTING IN MULTIMODAL TERMINALS
Impala jointly controls a 50-million tonne capacity iron ore export
terminal at Porto Sudeste in Brazil with Mubadala Investment and
Development Company. Porto Sudeste connects directly with Brazil’s
iron ore quadrangle in Minas Gerais state via the privately owned MRS
railway. With over USD2 billion invested, construction work is now
complete and commercial operations are underway.
Impala’s USD300 million investment to refurbish and expand a
state-of-the-art bulk storage terminal on the Mississippi River has made
Burnside a key strategic hub. It links the US coal producing heartland
with international export markets.
Impala’s newest terminal, at Huelva port in Spain, is set to become
one of Europe’s premier metal concentrates blending facilities. The
terminal is designed to receive, blend and export copper and zinc
concentrates from the MATSA mine amongst others in the south of
Spain. It is also equipped to receive and blend imported material from
other global locations.
Impala’s Huelva Terminal includes automated sampling and
testing, conveyor belts for transporting material around the facility and
a ship-loader for exporting product on ocean-going vessels.
DELIVERING END-TO-END SERVICE
Many of the world’s top companies rely on Impala to move, store, blend
and deliver their bulk commodities efficiently and with high quality.
Impala is the leading terminal and logistics specialist in Latin America,
a significant participant in Africa and is developing operations further in
North America, Europe and Asia.
For customers looking to deliver domestically, Impala offers
storage, onward shipping and final-mile delivery. Value-added services
include containerisation, blending, weighing, sampling and laboratory
testing.
The company is developing a global container freight forwarding
business to further enhance reliability, cost-efficiency and access to its
customers. It has freight forwarding operations based in seven locations
on four continents. This is winning business with Trafigura and thirdparty customers in equal measure.
BUILDING CAPACITY
Impala is investing internationally to build capacity and consolidate its
global presence. Strategically located infrastructure and multimodal
logistics are streamlining supply chains and facilitating global trade. At
scale and across the world, Impala has the capabilities and the people to
forge safe, reliable and cost-effective links between commodity
producers and end-users.
For further information please visit www.impalaterminals.com
COLOMBIA:
MULTIMODAL LOGISTICS INVESTMENT
STR ATEGY
SHAPING
A MORE PROSPEROUS
FUTURE FOR
COLOMBIA
IMPALA TERMINALS IS DEVELOPING
A MULTIMODAL LOGISTICS SOLUTION
THAT INTEGRATES INTERNATIONAL
TRADE WITH COLOMBIA’S INTERIOR
Impala Terminals’ USD1 billion-plus
investment in Colombia is one of the
most ambitious projects ever undertaken
by the Trafigura Group. We aim to develop
a unified, multimodal logistics solution
that integrates international trade with
the domestic economy.
Impala Terminals is transforming
logistics provision on the River Magdalena.
Our fleet of over 130 double-hulled
barges connects ports on the Caribbean
Sea with a purpose-built terminal
600 kilometres inland.
At Barrancabermeja we have
invested USD450 million in a state-ofthe-art fluvial terminal for hydrocarbons,
general cargo and container cargo. This is
a key interchange platform between road
and river routes, and a gateway to
international markets.
Barrancabermeja commenced early
operations in 2015. As the terminal steps
up its activities it is delivering increasing
socio-economic benefits. Previously,
there had been few opportunities for
local people. Industrialising the river
has brought jobs and skills; many new
businesses have sprung up. There are
environmental gains too. Every six-barge
convoy on the river means 250 fewer
1,200 kilometre journeys by truck.
Seven hundred kilometres to the west,
Impala is improving access to the Pacific by
investing in rail. We acquired the rights to
run the 100-year-old Ferrocarril del Pacífico
(FDP) railway linking Buenaventura,
Colombia’s busiest port, to Zaragoza
and La Tebaida.
Less than a quarter of the
300-kilometre line was functioning
when we took on the FDP concession. We
replaced track, bought new locomotives
with better trailage and improved the
reliability and frequency of the service.
The railway is now fully operational. We
have doubled the number of employees
and transformed efficiency. We are now
transporting over 25,000 tonnes of cargo
every month.
Across Colombia, we work
continuously with the communities most
affected by our activities to understand
and incorporate their concerns. We buy the
newest equipment, invest in high-quality
training and commit to demanding HSEC
and service standards, both for our own
employees and our contractors. We are
helping Colombia’s economy reach the
next level by transforming its logistics.
$1bn
Total investment
720,000bbls
Oil storage capacity for crude and naphtha
Construction of Impala’s inland riverside port at Barrancabermeja, Colombia.
Main image: Impala’s inland riverside port at Barrancabermeja, Colombia.
IMPLEMENTATION
PRODUCTION CAPABILITIES
MINING GROUP
The Mining Group manages mining operations, develops projects, conducts
technical audits of existing and potential partner projects and provides advisory
and support services to the rest of the company.
3.6mmt
Ore extracted at MATSA mine, Spain in 2015
0.7mmt
Ore extracted at Catalina Huanca mine, Peru in 2015
A STRATEGY FOR GROWTH
Trafigura Mining Group has a three-part strategy. It grows existing
operations organically, develops new projects where opportunities arise,
and provides technical services to assist Trafigura Group and its partners.
Trafigura Mining Group’s main operations are in Latin America,
Europe, Asia and Africa. Its flagship mining operation, Aguas Teñidas
(MATSA), produces copper, zinc and lead concentrates along with some
silver on the Iberian Pyrite Belt in Spain’s south-western region of
Andalusia. It also operates the Catalina Huanca mine in Peru and is
active in Brazil, Democratic Republic of the Congo (DRC) and Cuba.
In 2015, Trafigura and Abu Dhabi-based investment and
development company Mubadala, established a joint venture company
to invest in the base metal mining sector. As part of this agreement,
Mubadala acquired a 50 percent stake in MATSA (see pages 34-35 for
more information about the partnership).
EXPANDING MATSA
A EUR220 million, two-year expansion programme at MATSA has
created one of Spain’s largest mining operations. Major new deposits
and a second treatment plant have doubled production capacity from
2.3 million to 4.6 million tonnes annually.
A brand new mine, Magdalena, the first in Spain for decades came
on-stream in 2015. The satellite Sotiel mine, located near MATSA, was
reopened to feed the expanded treatment plant while production
ramps-up at Magdalena.
Impala’s 135,000m2 logistics terminal at the Port of Huelva
provides additional storage and carries out blending to prepare
shipments that meet customer requirements.
Magdalena features exceptionally rich copper concentrate deposits. We
are continuing to focus on optimising productivity and implementing
effective HSEC procedures to give MATSA one of the lowest break-even
production costs in the global copper mining industry.
A MORE PRODUCTIVE FUTURE FOR CATALINA HUANCA, PERU
The Catalina Huanca mine in Peru produces copper and zinc
concentrates with some gold and silver. This has always been a relatively
expensive mine to operate primarily because of its remote location and
limited mine-life.
The Mining Group has increased efficiency and lowered production
costs at Catalina Huanca. It has also consulted closely with the local
community to win support for its strategy. These initiatives have
enhanced the mine’s economic viability and helped to extend its
productive life.
CONSOLIDATION IN BRAZIL’S IRON QUADRANGLE
In Brazil, the Mining Group has agreed to acquire the Tico-Tico and Ipe
iron ore mining and processing assets from the creditors of MMX
Sudeste, subject to various conditions. The assets represent an
opportunity for Trafigura to expand in the ferrous mining business and
will complement the Porto Sudeste port business jointly controlled by
Impala Terminals and Mubadala.
The Mining Group is interested in exploring further opportunities
and play a role in the consolidation of the fragmented mining industry
in Brazil’s Belo Horizonte region.
PROGRESS IN AFRICA
Trafigura has acquired a majority interest in Mawson West, a mining
company based in Perth, Australia and listed on the Toronto Stock
Exchange. The company’s main asset is the Kapulo copper mine in the
south-eastern province of the DRC. The Mining Group is pursuing
initiatives to build production, reduce costs and identify exploration
opportunities.
Inside the Aguas Teñidas (MATSA) mine near Seville, Spain.
CUBAN COLLABORATION
Trafigura has signed a joint venture agreement with the Government of
Cuba to develop the Castellanos zinc and lead mine. The joint venture,
Emincar, is expected to be operational in mid-2017. The Mining Group
will manage operations and oversee USD300 million capital expenditure
for the project.
TECHNICAL SERVICES
Our global technical team includes internationally renowned mining
specialists and provides a range of specialist services. Geologists, mining
engineers, metallurgists, project management experts and mining
industry veterans travel the world, providing assistance where it is
needed. The team has provided expertise to support a range of projects,
including Jinchuan’s new copper smelter in China and due-diligence
work with iron ore producers in Brazil.
MUBADALA INVESTMENT AND DEVELOPMENT COMPANY:
STRATEGIC PARTNER
STR ATEGY
GROWING
TRADED VOLUMES IN
CHALLENGING MARKET
CONDITIONS
TRAFIGURA AND MUBADALA ARE SHARING
SKILLS AND CAPABILITIES TO ACQUIRE
BASE METAL ASSETS AT ATTRACTIVE PRICES
Structural changes in base metal markets
are raising searching questions for metal
and mineral producers. As Chinese demand
growth has slowed, market participants are
having to adjust.
Persistently low prices will make some
producers uneconomic. Many mining
companies will scale back production.
Some may be forced into asset disposals.
There are likely to be attractive
investment opportunities in base metal
assets for those with the patience,
confidence and resources to invest at
this stage of the economic cycle.
Trafigura is already one of the world’s
leading base metals trading firms. We
are now working with Abu Dhabi-based
investment and development company
Mubadala to identify productive base
metal assets in which each firm can invest.
Mubadala has already acquired a
50 percent stake in our Minas de Aguas
Teñidas (MATSA) mining operation, which
owns mines in southern Spain producing
copper, zinc and lead concentrates.
The two companies are a natural fit.
Mubadala has a global outlook and
extensive resources. Its sound investment
philosophy is based on fundamental value
and long-term growth.
Trafigura has a similar stance. Our
industry knowledge and global network
allow us to identify, develop and market
productive base metal assets.
Our Mining Group has the technical
expertise to improve productivity. Our
trading teams’ deal-sourcing capabilities
provide a platform for negotiating offtake
agreements in exchange for equity holdings.
At present, Trafigura and Mubadala
each hold non-controlling interests in Porto
Sudeste, a state-of-the-art iron ore port in
Rio de Janeiro state. The port connects
miners in Brazil’s iron ore quadrangle
with international markets.
Scale is a key factor for success
in base metals markets. Working with
Mubadala to identify opportunities
promises significant future value creation
and strengthens our ability to compete
effectively by growing traded volumes.
MATSA mine, Seville, Spain.
Main image: Impala Terminals’ and Mubadala’s Porto Sudeste iron ore export facility in Brazil.
IMPLEMENTATION
CORPOR ATE RESPONSIBILIT Y
INVESTING IN
RESPONSIBLE TRADE
Responsible trade drives economic progress and strengthens society. We are leveraging our experience and expertise to benefit the communities we serve.
C O R P O R AT E R E S P O N S I B I L I T Y
ADVANCING TRADE RESPONSIBLY
As a leading commodities trading company, we act as partner to nations,
corporations and communities. We aim to redress complex supply and
demand imbalances while earning the trust of those around us through
responsible practices and behaviours.
Integrating corporate responsibility into overall performance aligns
our strategy with core business objectives. Our approach is shaped by
the knowledge that, in the long term, our performance will be governed
by the positive contribution we make for stakeholders and society at
large. We aim to enhance our economic, environmental and societal
impacts through transparent and ethical behaviour.
TRAFIGURA GROUP PTE. LTD. RESPONSIBILITY REPORT 2015
OUR HSEC JOURNEY
Our vision is to become sector leaders in the way we manage business
conduct and in HSEC matters. This is a key strategic commitment. We report
annually on progress in this respect via a standalone sustainability report.
There are compelling commercial arguments
for investing in responsible trade. We know that to
operate effectively we have to earn and maintain a
2015
RESPONSIBILITY
social licence from local communities and
REPORT
governments. It is basic good business: safer operations
are not only better places to work, they are also
more efficient. What is more, there is the chance to
gain competitive advantage by leading on the
responsibility agenda.
TRAFIGURA GROUP PTE. LTD.
ADVANCING
TR ADE
IMPLEMENTING THE FRAMEWORK
Our governance structure is designed to ensure our HSEC Policy, HSEC
Business Principles and Code of Business Conduct are implemented
consistently across our diverse organisation.
Our HSEC Steering Group promotes best practice and drives HSEC
performance improvements. It reports twice annually to the
Management Board on HSEC Key Performance Indicators. Our global
Compliance team ensures that employees and contractors abide by our
Code of Business Conduct. We also work with specialist external
consultants who advise on HSEC matters and review our performance.
Different divisions and operating companies across the Group have
distinct challenges and priorities concerning the HSEC and compliance
agenda. All are required to implement, measure and report performance.
PROMOTING TRANSPARENCY
We take the view that transparency is indispensable in our corporate
responsibility journey. As a major facilitator of global trade, we also
believe that natural resource wealth should be an important engine for
economic growth that contributes to sustainable development and
poverty reduction. Being open about how we manage natural resources
gives the populations in countries where we operate the tools to hold
governments and business to account.
In November 2014, Trafigura formally declared its support to the
Extractive Industries Transparency Initiative (EITI) – the first privately
held commodities trading company to do so.
A COMPREHENSIVE FRAMEWORK FOR RESPONSIBILITY
Our HSEC Policy and HSEC Business Principles, along with our Code
of Business Conduct, encapsulate our approach. We continually review
these documents in line with the evolution of our business, best practice
and stakeholder input.
We encourage everyone with whom we do business, and we require
contractors and suppliers to apply comparable, comprehensive and
complementary standards, principles and policies.
ENGAGING WITH STAKEHOLDERS
We participate in a number of industry forums that seek to develop best
practice. We are members of the UN Global Compact and are engaging
with a broad range of stakeholders on the economic, social and
environmental impacts of commodities trading. They include host
governments, local communities, regulators and NGOs; partners,
financial institutions, customers and counterparties; academia, the
media and civil society. Taking account of what matters most to
our stakeholders is helping us to develop a more robust and resilient
business model.
For further information please visit
www.trafigura.com/responsibility
CORPOR ATE RESPONSIBILIT Y
TRAFIGURA
FOUNDATION
The Trafigura Foundation provides long-term funding
and expertise to improve socio-economic conditions
for vulnerable communities around the world.
KEY FIGURES
51
Programmes underway
29
Countries of activity
Overall funding by region since 2008
23%
3%
14%
21%
18%
21%
Africa
Europe
Middle East
Asia
North America
Latin America
OUR MISSION
The Trafigura Foundation was established in 2007 as an independent
philanthropic organisation with a twofold mission. We provide financial
and technical support to long-term development programmes that
deliver sustainable outcomes. We have formal processes in place to
select, support, monitor and review projects and proposals.
The Foundation partners with expert organisations on the ground
to support self-sustaining activities that help people realise their full
potential. The second part of our mission relates to the Trafigura Group,
where our role is to sensitise the company and its people to the realities
on their doorstep and to help them forge closer connections with the
wider world.
OUR ROLE IN TRAFIGURA
We fulfil the second part of our mission through our interaction with
Trafigura. We sensitise employees to the socio-economic realities
around them by involving them in our activities. With our help, Trafigura
is gaining a more complete sense of the social dimension to its role as a
major global economic player. We have established 15 Charity
Committees in Trafigura offices around the world. These raise funds and
act as conduits for staff members wanting to get more directly involved.
Where Trafigura employees want to contribute time and expertise, we
connect them with relevant programmes.
Employees participate in fundraising events – from golf
tournaments to marathons and bake sales – for their chosen charities.
The Foundation matches the amounts they raise, dollar for dollar.
Together, staff and the Foundation donated over USD1 million in 2015
to dozens of charities around the world.
EDUCATION AND INTEGRATION
Much of the Foundation’s focus is on educating and integrating young
people. We see employability as the beginning of self-reliance. In
Mexico, Jóvenes Constructores helps marginalised youth reintegrate
into the community by involving them in municipal construction works.
HEALTH
Grants in the health sector go to programmes that address real problems
and have measurable impacts. A partnership with HelpMeSee delivers
pre-sterilised, single use surgical kits to restore sight for thousands of
people made blind by cataracts in Madagascar, Gambia, Senegal, Mali,
Guinea, Angola and Myanmar.
WOMEN AS AGENTS FOR CHANGE
Investing in women’s education and employment is a common theme
in many of our projects. In the DRC, we are investing in girls’ education
at the Georges Malaika School for Girls. In India and Brazil we are
working with the Womanity Foundation. Its WomenChangeMakers
programmes champion female entrepreneurship. Through the Cherie
Blair Foundation, we are helping female entrepreneurs in the Palestinian
Territories gain access to loans and business training.
POST-DISASTER RELIEF
People often feel moved to help in the immediate aftermath of
a disaster. We get involved at a later stage when funding is scarcer.
21
Sustainable development programmes
23
Education and integration programmmes
Our Charity of the Year programme is steadily gaining ground. The
Charity Committees arrange elections and plan year-long funding
campaigns to support a local charity. The Foundation contributes a
sizeable grant.
FOCUS AREAS
The Trafigura Foundation ran 51 programmes across 29 countries in
2015. We provide our NGO partners with the financial means and
strategic guidance to carry out and strengthen their programmes.
Our three main focus areas as a grant-maker are complementary
and interdependent. We sponsor programmes to support sustainable
development, education and integration, and health.
7
Health programmes
To discover the many other programmes supported by the
Trafigura Foundation, visit www.trafigurafoundation.org
Mother with eight-month-old daughter who received surgery for bilateral
cataract, Lomé, Togo.
C O R P O R AT E R E S P O N S I B I L I T Y
SUSTAINABLE DEVELOPMENT
More than a third of our total funding supports sustainable development
programmes. Some of these aim to reconcile social and environmental
objectives – Planète Urgence is developing strategies that allow man
and mangrove to coexist successfully in Indonesia. Others focus
on entrepreneurship – Adie CréaJeunes supports micro-entrepreneurs
in France.
KEY
REGIONAL
OFFICES
A full list of Trafigura’s representative offices
can be found at www.trafigura.com
CANADA
RUSSIA
Calgary
Trafigura Canada General Partnership
Livingston Place, Suite 1200
250 – 2 Street S.W. Calgary
Alberta T2P 0C1
Tel: +1 403 294 0400
Moscow
Trafigura Eurasia Ltd.
Business Center LOTTE
19th Floor, 8 Novinsky Blvd
Moscow 121099
Tel: +7 495 641 1728
CHINA
Beijing
Trafigura Beijing Representative Office
Rm 2103 Building No B Ping’an, International Financial Centre (Ping’an IFC)
No. 1-3 Xinyuan South Road, Beijing 100004
Tel: +86 10 8446 5100
Shanghai
Trafigura Investment (China) Co., Ltd.
56F Tower 2, IFC Building, 8 Century Avenue Pudong Shanghai 200120
Tel: +86 21 6125 8300
SINGAPORE
Singapore
Trafigura Group Pte. Ltd.
10 Collyer Quay
Level 29 Ocean Financial Centre
049315
Tel: +65 6319 2960
SOUTH AFRICA
Johannesburg
Trafigura Services South Africa 15 Alice Lane, 3rd Floor
Sandton
Johannesburg
2196
Tel: +27 11 750 6800
SWITZERLAND
INDIA
Mumbai
Trafigura India Pvt. Ltd.
2 North Avenue, Maker Maxity,
Bandra Kurla Complex,
Bandra (East)
Mumbai 400 051
Tel: +91 22 4226 8550
MEXICO
Mexico City
Trafigura Mexico
Reforma 115 Oficina 2102
Col. Lomas de Chapultepec
Delegacion Miguel Hidalgo
Federal District
11000
Tel: +52 5552 01 4100
PERU
Lima
Trafigura Peru
Av. Santo Toribio 173
Edificio Real Ocho
Piso 4
Centro Empresarial Real
San Isidro, Lima
Tel: +51 1 215 5470
Geneva
Trafigura Pte. Ltd.
1 Rue de Jargonnant
1207 Geneva
Tel: +41 22 594 6900
UNITED STATES OF AMERICA
Houston
Trafigura Trading LLC
1401 McKinney Suite 1500
Houston
Texas 77010
Tel: +1 832 203 6400
Stamford
Trafigura Trading LLC
One Stamford Plaza
16th Floor, 263 Tresser Boulevard
Stamford, CT 06901
Tel: +1 203 355 7200
URUGUAY
Montevideo
Trafigura Pte. Ltd.
Zonamerica, Ruta 8 km 17.500
Edificio Tribute
91600 Montevideo
Tel: +598 2518 8100
Printed by Pureprint on Oxygen offset which is 100% recycled and FSC certified.
Pureprint is certified to ISO 14001 environmental management system, is registered to EMAS the Eco Management Audit Scheme,
is a Carbon Neutral Company and has been awarded the Queens Award for Enterprise: Sustainable Development.
Designed and produced by SALTERBAXTER MSLGROUP
Written by Gotell Communications.
Photography by Charles Cannon, Gareth Bentley, Jonathan Glynn Smith, Redwing.
Trafigura Group Pte. Ltd. and the companies in which it directly or indirectly owns investments in are separate and distinct entities.
In this publication, the collective expressions ‘Trafigura’, ‘Trafigura Group’, ‘the Company’ and ‘the Group’ may be used for convenience
where reference is made in general to those companies. Likewise, the words ‘we’, ‘us’, ‘our’ and ‘ourselves’ are used in some places
to refer to the companies of the Trafigura Group in general. These expressions are also used where no useful purpose is served
by identifying any particular company or companies.
Trafigura Group Pte. Ltd.
10 Collyer Quay #29-00
Ocean Financial Centre
Singapore 049315
www.trafigura.com
TF/0155.2e

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