Glencore responds to climate suggestions, provides production update

28th October 2022 By: Martin Creamer - Creamer Media Editor

Glencore responds to climate suggestions, provides production update

Glencore CEO Gary Nagle.

JOHANNESBURG ( ­– Diversified mining and marketing company Glencore, in response to recommendations received, will take four steps to advance its climate reporting amid the world facing a rapidly closing window to meet the Paris Agreement’s climate goals.

The London- and Johannesburg-listed Glencore simultaneously released its third-quarter production of 41% higher cobalt, 15% higher nickel output, and 4% more ferrochrome on consistent smelter performance.

Regarding climate, Glencore will:

Shareholders will be updated on climate strategy progress at the full year results presentation in February, and further details on Glencore’s response to the outcome of its Climate Resolution vote will be provided in the 2022 climate and annual reports in March.

Glencore’s investor update will be held on December 6. 

On third-quarter production performance, Glencore CEO Gary Nagle drew attention to the impacts of extreme weather in Australia, industrial action at nickel assets in Canada and Norway, and the emergence of significant supply chain issues in Kazakhstan, stemming from the Russia/Ukraine war. 

Full-year 2022 production guidance has, accordingly, been reduced for affected commodities.

Anticipated in the second half is a significantly reduced, but still above-average, contribution, which will likely exceed $1.6-billion, being the top end of the pro-rated long-term earnings before interest and tax guidance range of $2.2-billion to $3.2-billion a year, the company stated in a release to Mining Weekly.

In the three months to the end of September, copper output was down 14% year-on-year to 770.5 kt, zinc 18% lower at 699.6 kt, lead down 21% to 136.9 kt, gold down 15% to 504 koz, and silver down 25% to 17 878 koz.

Third-quarter cobalt production rose to 33.1 kt, nickel to 81.6 kt and ferrochrome to 1 110 kt.

Climate sensitive coal production was 7% higher at 81.9 mt and oil 16% up in barrels of oil equivalent (boe) at 4 822 kboe.

Changes in fourth quarter production guidance involve mainly a tightening of the ranges, with zinc forecast to be 6% down, nickel 8% down and coal 9% down.

In the three months to September 30, own sourced copper production was 770 500 t, own sourced zinc production 699 600 t, own sourced nickel production 81 600 t, and attributable ferrochrome production 1 110 000 t.

Coal production totalled 81.9-million tonnes and entitlement interest oil production 4.8 million boe.