Glencore CEO Gary Nagle
JOHANNESBURG (miningweekly.com) – Diversified mining and marketing company Glencore expects its full-year 2021 adjusted earnings before interest and taxes to exceed the top end of its forecast $2.2-billion- to $3.2-billion-a-year long-term guidance range.
A production highlight included 65%-higher attributable ferrochrome production of 1 071 000 t – 420 000 t more than the comparable 2020 period, when operations were suspended for much of South Africa’s second-quarter Covid lockdown.
In presenting the third-quarter production report for the three months to September 30, Glencore CEO Gary Nagle said the asset base of the London- and Johannesburg-listed company had largely performed in line with expectations.
“Our full year production guidance remains unchanged,” Nagle stated in a release to Mining Weekly.
The company’s recovery from the market-driven production cuts initiated within its Australian coal portfolio in the second half of 2020 was highlighted, with marketing’s continued strong performance helping towards the likely exceeding of the top end of the long-term guidance range forecast.
Coal production was a 9%-lower 76.3-million tonnes, with the 7.2-million tonnes reduction reflecting a full period of Prodeco care and maintenance, 2020’s second-half recovery from the market-related reductions across the Australian portfolio and lower domestic production and demand in South Africa.
Glencore’s own-sourced copper production of 895 500 t was 4% below the comparable 2020 period, on lower mined grades at various operations.
The company’s own-sourced zinc production of 855 800 t was in line with the comparable 2020 period and own-sourced nickel production of 71 100 t was 13% lower than the comparable 2020 period owing to planned maintenance at Murrin Murrin, in Australia, and various operating issues at Koniambo, in New Caledonia.
Entitlement interest oil production of 4.1-million barrels of oil equivalent was 23% higher than the comparable 2020 period, mainly reflecting the gas phase of a project in Equatorial Guinea from February 2021, and a full period contribution from the new well in Cameroon. The Chad fields remained on care and maintenance throughout 2021.
Glencore reached an agreement this month to sell for $242-million 100% of the interests in its wholly owned subsidiary Chemoil Terminals, which owns the Long Beach and Carson oil products storage terminals in California.
Glencore has also reached agreement to dispose of its Bolivian zinc assets, Sinchi Wayra and Illapa, to Santacruz Silver Mining for about $110-million.
Moreover, the Colombian National Mining Agency has accepted the relinquishment of Prodeco’s key mining contracts back to the Republic of Colombia, with the mines remaining on care and maintenance until the formal process of relinquishing the contracts is complete.