13th Aug 2014 06:44
LONDON (Alliance News) - Metals giant Glencore PLC Tuesday reported higher copper, ferrochrome and oil production in the first half of the year as it ramped up output at some mines and oil facilities, although zinc and nickel production was down on the year as other mines depleted reserves or were placed on care and maintenance.
The company said own-sourced copper production was up 13% on the year in the six months to June 30 to 741,000 tonnes, driven by a ramp up of its Mutanda mine and improved production at Collahuasi. However, output was down 12% on the second half of 2013 due to lower head grades caused by mine sequencing at Collahuasi and Antamina and planned maintenance shut downs at its Collahuasi, Mount Isa and Mopani mines.
Own sourced zinc production was 650,400 tonnes, down 11% on the year, primarily due to Glencore's Perseverance and Brunswick mines having depleted their reserves in June 2013. Production was broadly flat compared with the second half of 2013, as a ramp up at the Perkoa mine largely offset mine sequencing lower grades at Antamina and some opportunistic favouring of third party feed at Kazzinc.
In a production report, the company said own sourced nickel production fell 8% on the year to 49,100 tonnes, as the Sinclair and Cosmos and Falcondo mines were all placed on care and maintenance. Production was up 8% compared with the second half of 2013, due to higher production at INO and the continued ramp-up of production at Koniambo.
Production of own sourced ferrochrome rose 16% on the year to 652,000 tonnes, reflecting increased capacity due to the prior-period Eskom power buy-back programme, and a ramp-up in production relating to the Lion 2 expansion project.
Own sourced coal production was up 5% to 71.2 million tonnes, mainly due to productivity improvements and ongoing expansion projects in Australian thermal coal, and a 32 day strike at Cerrejón which impacted the first quarter of 2013.
Gross oil production rose 41% on the year to 14.0 million barrels, as its operations at Alen and Badila, which came on line during 2013, counted for the full period.
By Steve McGrath; [email protected]; @stevemcgrath1
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