Glencore 2017 Production Fell on Disposals, Maintenance, Weather

By Carlo Martuscelli

Glencore PLC (GLEN.LN) said Thursday that production was lower for most commodities in 2017, reflecting the impact of disposals, maintenance work and weather.

The natural-resource company said copper production for the year ended Dec. 31 fell 8% to 1.3 million metric tons. The decrease was attributable to constraints on production due to smelter maintenance, end-of-life production declines, a shortage of sulphuric acid, and the partial sale of the Ernest Henry mine in Australia, the company said.

However, Glencore said copper production rose 20% in the fourth quarter from the previous quarter, reflecting the resolution of those issues.

Nickel production decreased 5% to 109,100 tons, while zinc production was in line with the year before at 1.1 million tons, Glencore said.

The company said coal production fell 3% to 121 million tons, and cited industrial action and weather conditions which were slightly offset by improvements in productivity and Glencore expanding its stake in certain mines.

Glencore's share of oil entitlement was 5.1 million barrels, 19% lower than the same period last year, due to low oil prices leading to inactive field development, it said.

The company said it had increased its meaningful proved and probable reserves at a number of holdings. It said nickel reserves at its Sudbury nickel mine in Canada increased by 14 million tons of ore, or 48%, while its Kazzinc mine in Kazakhstan added 8 million tons of zinc ore, a 9% increase. Glencore said its Katanga mine in Congo had added 13 million tons, or 10%, of copper ore.

Write to Carlo Martuscelli at [email protected]