2nd Feb 2022 08:57
(Alliance News) - Glencore PLC on Wednesday reported that its full-year production performance was mixed, though "largely" in line with its guidance.
The Switzerland-based commodity trading and mining company also indicated that its 2022 production guidance remained unchanged from the levels forecast in December 2021.
For 2022, copper is expected to decrease slightly to 1.15 million tonnes, while cobalt is projected to surge to 48,000 tonnes. Zinc is forecast to remain flat at 1.11 million tonnes.
In 2021, Glencore said copper production dropped by 5% to 1.20 million tonnes from 1.25 million tonnes in 2020 mainly due to the Mopani disposal, lower copper grades at Antapaccay, and lower copper by-products from its mature zinc and nickel mines.
Full-year cobalt production rose by 14% to 31,300 tonnes, compared to 27,400 tonnes despite limited restart of production at Mutanda in 2021.
Zinc output of 1.11 million tonnes in 2021 represented a 4% decline from 1.17 million tonnes, mainly reflecting the decrease of Maleevsky mine in Kazakhstan.
Nickel production was 7% lower at 102,300 tonnes, from 110,200 tonnes as the lengthy scheduled statutory shutdown and maintenance issues at Murrin Murrin earlier in the year weighed.
However, attributable ferrochrome production jumped 43% to 1.46 million tonnes from 1.02 million tonnes, benefitting from a strong operating performance.
Coal production slowed by 3% to 103.3 million tonnes 106.2 million tonnes, reflecting Prodeco's care and maintenance status, and lower domestic power demand and export rail capacity constraints in South Africa.
Over the 2021 financial year, Glencore acquired two-thirds of the Cerrejon coal mine joint venture in Colombia from BHP PLC and Anglo American PLC for USD588 million.
It also closed the sale of its subsidiary Ernest Henry Mining Pty Ltd, the owner of the Ernest Henry Mining copper-gold mine in Australia, in a deal valued at AUD1 billion, or USD715 million.
"Overall, our operations largely performed in line with guidance expectations. We completed the Cerrejon acquisition and Ernest Henry disposal in January, such transactions being consistent with our continued strategy to simplify and align our portfolio with the materials needed for the energy transition and the responsible decline of our coal business," said Glencore Chief Executive Gary Nagle.
In Johannesburg, Glencore shares rose by 1.8% to ZAR82.20 in early morning trade on Wednesday. In London, they were up 0.4% at 397.40 pence.
By Artwell Dlamini; [email protected]
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