Coal still king for Glencore

ALEXANDRA EASTWOOD

Wilkie coal

Coal has emerged as the standout commodity from Glencore’s 2023 full year production report.

While copper, cobalt, zinc and nickel production all experienced a downturn, Glencore’s coal production was three per cent higher than 2022 at 3.6 million tonnes (t).

The number was a reflection of higher productivity in South Africa and a year over year easing in external factors that constrain capacity, such as wet weather and blockades.

Nickel production fell by nine per cent to 97,600t, primarily due to the planned shutdown of Glencore’s Murrin Murrin site in WA for routine maintenance.

Cobalt production was six per cent lower than 2022 at 41,300t and copper production was 48,000t lower than 2022.

Despite the slight donwturn, Glencore chief executive officer Gary Nagle remains positive.

Overall 2023 production was in line with our earlier revised guidance, with stronger second half volumes delivered across our key commodities, including copper, zinc, nickel and coal,” he said.

Compared to 2022, the moderately lower year-on-year copper and zinc department managed production volumes, primarily reflect disposals of the Cobar copper mine and various South American zinc operations.”

Looking ahead, Nagle said production is looking steady.

Coal production is forecast to be steady at the guidance range mid-point of 110 million tonnes, excluding any incremental volumes from the recently announced acquisition of a 77 per cent interest in Teck’s steelmaking coal business, currently going through its various approval processes,” he said.