Glencore has maintained its 2024 production guidance and added additional steelmaking coal volumes for the second half of the year.
The ramp up follows Glencore’s successful takeover of Canadian-based Elk Valley Resources (EVR), Teck Resources’ steelmaking coal subsidiary.
“As anticipated, 2024 is expected to be a year of two halves, whereby the tracking of our year-to-date production versus guidance is expected to be caught up during the second half of the year,” Glencore chief executive officer Gary Nagle said.
“We are now in the process of consulting with shareholders to assess their views regarding the potential demerger of our coal and carbon steel materials business.
“We expect to be able to announce the outcome of such engagement and the decision of the board regarding the potential demerger alongside our interim results next week.”
On a like-for-like basis, removing 15,000 tonnes (t) of copper production due to Glencore’s sale of the Cobar mine in New South Wales led to copper production of 462,600t, two per cent below the first half of the previous year (H1 2023).
Coal production of 50.6 million tonnes (Mt) was 3.6Mt lower than H1 2023, mainly reflecting the progressive impact of Glencore’s scheduled mine closures, the temporary impact of longwall moves in Australia in 2024 and export rail constraints in South Africa.
Cobalt production of 15,900t was 5800t lower than H1 2023, reflecting planned lower run-rates at Mutanda in the Democratic Republic of Congo in response to the current weak cobalt pricing environment and lower throughput and cobalt grades at Komato copper company.
Nickel production of 44,200t was 2200t lower than H1 2023, reflecting the New Caledonia-based Koniambo mine’s transition to care and maintenance.
Excluding Koniambo, own sourced nickel production of 39,200t was 5500t higher than H1 2023.
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