EU: Glencore's coal output falls 7% y-o-y in H1CY'24
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Mysteel: Global mining giant Glencore produced 50.6 million tonnes of coal, including thermal coal and metallurgical coal, in the first half of this year, down 3.6 million tonnes, or 7%, from a year earlier, the company said in its Half-Year Production Report 2024 published on July 30.
The report highlighted a decrease in both thermal and met coal production in H1. Met coal, crucial for steelmaking, fell 8% to 3.4 million tonnes, and thermal coal, primarily used for power generation, declined 7% to 47 million tonnes.
The production is on a 100% basis from controlled assets and joint ventures, the report remarked.
The decline in H1's coal output is mainly due to "the progressive impact of scheduled mine closures, the temporary impact of longwall moves in Australia in 2024, and export rail constraints in South Africa", said the report.
On July 5, Glencore announced that it had received Canadian government approval to acquire a 77% stake in Elk Valley Resources (EVR) from Teck Resources. EVR operates four steelmaking coal mines, as Mysteel Global reported.
"As announced earlier this month, post the acquisition of EVR, we are now in the process of consulting with shareholders to assess their views regarding the potential demerger of our coal and carbon steel materials business. We expect to be able to announce the outcome of such engagement and the decision of the Board regarding the potential demerger alongside our interim results next week," said Glencore's CEO Gary Nagle in the report.
Meanwhile, Glencore has updated its coal production guidance for the full year 2024, with the company now forecasting 19-21 million tonnes of met coal, including around 12 million tonnes from EVR in the second half of the year. This revised forecast is higher than the existing guidance of 7-9 million tonnes.
The company's thermal coal production guidance remains unchanged at 98-106 million tonnes for the year.
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and BigMint.