Glencore produces less coal in the first half of the year
Published: Tuesday, Jul 30th 2024, 09:30
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Glencore recorded lower production volumes for most commodity groups in the first half of the year, but has confirmed its forecast for the year. In the coming week, the commodities trader and mining group will also provide information on how to proceed strategically with the coal business.
From January to June 2024, coal production fell by 7 percent to 47 million tons. According to a statement on Tuesday, this is mainly due to the gradual effects of planned mine closures, temporary restrictions in Australia and rail transport restrictions in South Africa.
Glencore recorded a 5% decline in copper production to 462,600 tons. Declines were also recorded for zinc (-4% to 417,200 tons), nickel (-5% to 44,200) and cobalt (-27% to 15,900).
While silver also declined (-3% to 9.1 million ounces), gold production remained at the previous year's level at 369,000 ounces. Lead recorded a slight increase of 1% to 87,900 tons.
Annual forecast confirmed
According to Glencore, production should catch up in the second half of the year compared to the first half. Accordingly, coal production of 98 million to 106 million tons is still expected for the year as a whole. For copper, Glencore expects production to be within the range of 950,000 to 1.01 million tons.
At the beginning of July, the Swiss commodities group received the green light in Canada for the billion-euro takeover of a majority stake in the Teck coal business. Following the takeover of the Teck subsidiary Elk Valley Resources (EVR) in Vancouver, Glencore said on Tuesday that it was still in contact with shareholders to obtain their opinion on the possible spin-off of the coal and carbon steel business. Results and decisions on this are expected to be announced together with the half-year results next week.
Glencore is paying around USD 6.9 billion for a 77% stake in Teck's coal business. The deal is expected to be completed in the third quarter of 2024, according to earlier information. The deal was preceded by a long battle between Teck and Glencore: Glencore originally wanted to acquire the company outright and then spin off the combined coal business. However, Teck had resisted these plans.
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