【Ferro-alloys.com】Glencore Chief Executive Officer, Gary Nagle:“The asset base has largely performed in line with our expectations and our full year production guidance remains unchanged. Notably, as energy markets have improved, we are recovering from the market-driven production cuts initiated within our Australian coal portfolio in H2 2020. “Basis Marketing’s continued strong performance, we now expect full year 2021 Adjusted EBIT to exceed the top end of our $2.2-3.2 billion per annum long-term guidance range.”
Production from own sources – Total
Production guidance
No change to previous 2021 production guidance.
Production highlights
Own sourced copper production of 895,500 tonnes was 39,200 tonnes (4%) below the comparable 2020 period, reflecting lower mined grades at various operations. Approximately half this variance relates to lower copper by-product at non-Copper department assets.
Own sourced zinc production of 855,800 tonnes was in line with the comparable 2020 period. Recovery from 2020 Covid restrictions was offset by temporarily lower Kazzinc production pending the ramp-up of the recently commissioned Zhairem mine.
Own sourced nickel production of 71,100 tonnes was 10,700 tonnes (13%) lower than the comparable 2020 period due to planned maintenance at Murrin Murrin and various operating issues at Koniambo.
Attributable ferrochrome production of 1,071,000 tonnes was 420,000 tonnes (65%) higher than the comparable 2020 period, reflecting that operations were suspended for much of Q2 2020 due to the South African national lockdown, with a period of ramp-up thereafter.
Coal production of 76.3 million tonnes was 7.2 million tonnes (9%) lower than the comparable 2020 period, reflecting a full period of Prodeco care and maintenance, the progressive recovery from the market-related reductions across the Australian portfolio initiated in H2 2020 and lower domestic production/demand in South Africa.
Entitlement interest oil production of 4.1 million barrels of oil equivalent (boe) was 0.8 million boe (23%) higher than the comparable 2020 period. This mainly reflects the gas phase of a project in Equatorial Guinea that commenced in February 2021, and a full period contribution from the new Cameroon well. The Chad fields remained on care and maintenance throughout 2021.
Other matters
On 15 October 2021, Glencore reached an agreement to sell 100% of the interests in its wholly owned subsidiary Chemoil Terminals LLC, which owns the Long Beach and Carson oil products storage terminals in California. The sale consideration is $242 million and closing is subject to certain conditions precedent, including relevant anti-trust approval. We expect the transaction to close before the end of this year.
As previously announced, Glencore has reached agreement to dispose of its Bolivian zinc assets, Sinchi Wayra and Illapa, to Santa-cruz Silver Mining, Ltd, for consideration of approximately $110 million. The consideration is structured as a $20 million initial payment and a further $90 million to be paid within 4 years or less. Completion is expected to occur within the next three months.
As previously announced, Glencore was formally notified that the Colombian National Mining Agency has accepted the relinquishment of Prodeco’s key mining contracts back to the Republic of Colombia. The mines will remain on care and maintenance until the formal process of relinquishing the contracts is complete.
- [Editor:zhaozihao]
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