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Glencore reports lower FY coal, copper output

Glencore reports lower FY coal, copper output

Photo by Duane Daws

11th February 2016

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Output across most of diversified major Glencore’s production categories fell in 2015, with coal output down 10% year-on-year, copper production 3% year-on-year and nickel 5% year-on-year.

Coal production decreased to 131.5-million tonnes, owing to the curtailment of production in response to market conditions and the deconsolidation of the Optimum Coal assets.

Optimum Coal was placed into business rescue in August last year, resulting in a 20% drop in South African thermal coal production to 37-million tonnes. The assets had since been sold to Tegeta Resources.

Australian coking coal production of 5.9-million tonnes was in line with that produced in 2014, but thermal and semisoft coal output fell 6% year-on-year to 59.9-million tonnes, owing to the production curtailments in light of weaker prices.

Colombian coal production fell 10% to 17.6-million tonnes, owing to railing capacity constraints that had now been resolved.

Glencore’s own-sourced copper production, meanwhile, fell 3% year-on-year to 1.5-million tonnes, as a result of the suspension of processing operations at the group’s Africa-based operations, including the Katanga complex, in the Democratic Republic of Congo and a significant curtailment at the Mopani operations, in Zambia.

The African copper operations delivered 421 900 t of copper in 2015, a 9% drop on the 465 000 t produced in 2014, while cobalt production increased 13% to 19 400 t, compared with the 17 200 t produced the year before.

Meanwhile, Glencore’s share of the Chile-based Collahuasi mine’s output for the full year was 200 400 t, 3% lower than in 2014, owing to changes in grades. The group’s share of production from the Peru-based Antamina mine, meanwhile, increased 13% year-on-year to 131 800 t, owing to higher throughput rates.

The miner’s other South American mines delivered 343 100 t of copper for the full year, while its Australian mines produced 256 400 t of copper. This was in line with 2014 production.

Zinc production, meanwhile, rose 4% year-on-year to 1.44-million tonnes, owing to the successful completion of expansion projects at the Lady Loretta, George Fisher and McArthur River assets, in Australia, over the first nine months of the year.

However, production cuts were implemented at these operations from October last year, owing to low commodity prices.

Nickel production decreased 5% year-on-year to 96 200 t, mainly as a result of a metal leak at the Koniambo operation, in New Caledonia, in December 2014, and the extended shutdown at the Sudbury smelter.

The Line 1 furnace at Koniambo had been rebuilt during 2015, with the first metal tapped in January. Testing of the furnace would continue over the first half of this year. The Line 2 furnace would also be rebuilt, with this project not expected to start before 2018.

Glencore reported a 13% increase in attributable ferrochrome production to 1.46-million tonnes for 2015, owing to the full-year’s contribution from the Lion II ferrochrome plant, in Limpopo, South Africa.

Manganese output increased 9% year-on-year to 244 000 t.

For 2016, the miner expects to produce about 1.39-million tonnes of copper, 1.1-million tonnes of zinc, 285 000 t of lead, 116 000 t of nickel, 1.58-million tonnes of ferrochrome and 130-million tonnes of coal.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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