Switzerland: Glencore revises base metals production guidance for coming three years

Glencore, one of the world's leading globally diversified natural resource companies, has cut its production guidance across all commodities its mines for the coming three years till 2025.

Copper

It is anticipated that there may be slightly lower copper output from Glencore's other departments.

Copper output is likely to decrease to 1.04 mnt (+/- 30,000 t) against 1.06 mnt (+/- 20,000 t) forecasted for 2023.

In 2024, production is expected to rise to 1.06 mnt but it may come down to 1.045 mnt again in 2025.

Production of about 205,000 t (+/- 15,000 t) of copper is expected from Katanga Mining in 2023-2024 and about 240,000-270,000 t in 2025. Meanwhile, Mutanda Mining is expected to add about 25-30,000 t from 2023 and 50,000 t from 2024.

Glencore's copper business continues to focus on durable and low-cost assets in South America and Africa. Katanga, Mutanda, Collahuasi, Antamina and Antapaccay comprises the vast majority in total production by the miner.

Zinc

Production is expected to increase up to 950,000 t (+/- 30,000 t) in 2023, higher by 5,000 t compared to 2022. In 2024, production is expected to remain stable y-o-y at 950,000 t.

It is expected that there will be a decline in production of zinc to about 890,000 t in 2025 reflecting the end of mine life closures.

Glencore's zinc business is now geared toward large, long-lived assets, with Kazakhstan and Australia accounting for nearly all production prospects other than Antamina. On the other hand, Zhairem is to increase production by 2023 (the target is stable by Q4).

Nickel

Production is forecasted to be 112,000 t (+/- 5,000 t), increasing by 2,000 t against 2022. Nickel production is forecasted to increase to 123,000 t in 2024.

The company has projected nickel production of about 123,000 t in 2025, stable against 2024.

The company said that the increase in production from ex-Koniambo mine over the outlook period reflects the commissioning of the Canadian life extension projects. Major project delivery includes the Raglan phase 2 commissioning in 2024 and Onaping depth in 2025. There is a stable Murrin Murrin production profile over the period.