Switzerland-based mining firm Glencore's base metals production fell on the year in the second quarter, with copper, zinc, and nickel all registering declines. Its copper production was marred by lower grades from some historical stock depletion and unplanned mill downtime at its African assets, with a geotechnical event and subsequent mine stabilisation activities at the Antapaccay site affecting output in South America.
Glencore's copper output fell by 9% on the year to 222,900 tons during April-June, with its Mutanda asset registering a steep 27% drop in copper metal output to 7,100 tons. Copper in concentrates production at Antapaccay shed 42% to 26,500 tons.
The group's January-June copper output fell by 5% year on year to 462,600 tons. But Glencore expects to recoup its losses in the second half of the year and left its annual production guidance for copper unchanged at 950,000-1.01 million tons.
Glencore's second-quarter zinc output fell by 8% on the year to 211,600 tons. Volumes were lower from Antamina given its expected copper/zinc mine sequence this year, but the drop was partially offset by the ramp-up of Zhairem. The group's January-June zinc output fell by 4% on the year to 417,200 tons.
Glencore's nickel output suffered a heavy fall on the transition of its New Caledonia operations into care and maintenance. But the drop was partially offset by recovery at its Sudbury Integrated Nickel Operations in Canada, together with higher production at Murrin Murrin in Australia.
Glencore's nickel output fell by 20% year on year to 20,400 tons in the second quarter, with January-June output registering a 5% fall to 44,200 tons. The drop was the result of its Koniambo operations in New Caledonia ceasing operations, going from an output of 7,700 tons of nickel in ferronickel in the second quarter of 2023 to zero this year.
Glencore's annual production guidance for nickel and zinc was unchanged at 80,000-90,000 tons and 900,000-950,000 tons, respectively.
The group's ferrochrome output fell by 16% on the year to 599,000 tons during January-June owing to the Rustenburg smelter's continued idled status in response to weak market conditions. A restart was pending an improved price and cost environment, the group said.
Glencore's cobalt production also fell by 27% year on year to 15,900 tons in the first half, attributed to lower run rates at Mutanda in response to a weak cobalt pricing environment, together with lower throughput and cobalt grades at the KCC asset.
No comments
Post a Comment