Glencore guiding higher ferrochrome, nickel output

JOHANNESBURG (miningweekly.com) – Diversified mining and marketing company Glencore on Thursday guided higher 2016 ferrochrome and nickel production – the only two of its wide range of commodities that it expects to produce at levels higher than in 2015.

Reporting lower half-year production of copper, zinc, lead, coal and oil than in the first six months of 2015, the London-, Hong Kong- and Johannesburg-listed company headed by CEO Ivan Glasenberg put this year’s expected full-year ferrochrome production at 1 575 000 t – up on the 1 462 000 t of 2015.

In the six months to June 30, Glencore’s attributable share of ferrochrome production of 762 000 t was in line with last year’s first-half output.

The company is also guiding 2016 nickel output of 116 000 t, up on the 96 000 t of last year.

Otherwise, full-year 2016 production guidance for copper, zinc, lead, coal and oil is below the output levels of last year.

First-half coal production was 14% lower at 58.8-million tonnes on the part-closure of the Optimum Coal division in South Africa, where thermal coal production in the half-year was 37% lower at 14.1-million tonnes on Optimum and the closures of the Middelkraal and South Witbank mines.

Total Australian thermal and semi-soft coal production of 29.5-million tonnes was 6% higher than in the first half of last year, when poor ground conditions at Bulga’s underground mine and a longwall move at Ulan West impacted volumes.

Australian coking coal production was 27% lower at two-million tonnes on geological issues at Oaky Creek and longwall preparatory work at Tahmoor.

In Colombia, production at Prodeco was 18% lower at 8.3-million tonnes and attributable production from Cerrejón 17% lower at 4.9-million tonnes.

In the six months to June 30, own sourced copper production of 703 000 t was 4% down on the first half of last year on previously announced curtailments at Glencore’s African operations, partly offset by generally higher grades in South America.

Own sourced zinc production of 506 500 t was 31% lower on cuts in mainly Australia and Peru.

Own sourced nickel production of 57 100 t was a 17% improvement, as a result of increased treatment of own feeds, following the planned Sudbury smelter shutdown in 2015.