Swiss Glencore anticipates higher coal production levels in H2 ’24

Swiss mining firm Glencore announced additional steelmaking coal volumes expected in the second half of the year, following the successful closing of the EVR acquisition on  July.

H2 2024 Production Increase

The company anticipates higher production levels in the second half, including an increase of approximately 30kt in African Copper, 8kt in Antapaccay, 60kt in Kazzinc, and 3kt in Murrin Murrin. The updated steelmaking coal production guidance is now 19Mt-21Mt, including 12Mt expected from EVR. Energy coal production is forecasted to improve primarily from Australian assets.

Potential Demerger

Following the EVR acquisition, Glencore is consulting shareholders on a potential demerger of the coal and carbon steel materials business, with the outcome to be announced alongside the interim results next week.

First Half 2024 Production Figures

In the first half of 2024, production from own sources showed declines compared to the first half of 2023 in copper (-5 per cent), cobalt (-27 per cent), zinc (-4 per cent), nickel (-5 per cent), ferrochrome (-16 per cent), steelmaking coal (-8 per cent), and energy coal (-7 per cent). Lead production slightly increased to 87.9kt (+1 per cent), and gold remained steady at 369koz.

Full-Year 2024 Production Guidance

For the full year 2024, production guidance remains unchanged except for adjustments due to the EVR acquisition. Copper is expected to be 950-1,010kt, cobalt 35-40kt, zinc 900-950kt, nickel 80-90kt, ferrochrome 1,100-1,200kt, steelmaking coal 19-21Mt, and energy coal 98-106Mt.

Attribution: Glencore