Glencore has downgraded expectations for nickel production, with the commodities giant’s output still recovering from strike action last year, alongside maintenance issues at a key smelter.
The Swiss firm was hit by industrial action from more than 600 workers at its Raglan mine in Quebec, Canada, last summer, a key nickel facility for the FTSE-listed company.
This has contributed to a 16 per cent decline in production for the year to date, dropping from 82,000 tonnes to 68,400 tonnes — with the company having to source external supplies to trade in order to make up for production shortfalls. The Swiss firm was hit by industrial action from more than 600 workers at its Raglan mine in Quebec, Canada, last summer, a key nickel facility for the FTSE-listed company.
Glencore has also faced challenges from maintenance outages at the Sudbury smelter and a lower full-year revision for the Koniambo mine in New Caledonia, opting to end support for the site next year.
Glencore now expects nickel production to reach 102,000 tonnes for the full-year, below previous estimates of 112,000 tonnes.
Nickel is widely used for electric car batteries and renewable energy projects, and will become increasingly important amid the shift from fossil fuels to low carbon-powered vehicles and energy generation.
Production expectations across its other key minerals including copper, zinc, and cobalt remains in line with previous guidance for the full year — which will be announced in early 2024.
Over the first three quarters of this year, own sourced copper production declined five per cent to 735,800 tonnes compared with the same period in 2022, while zinc production was four per cent down at 672,100 tonnes, while cobalt production of 32,500 tonnes was comparable to last year’s figures.
Elsewhere, Glencore’s production of steel ingredient ferrochrome was 21 per cent lower — at 873,000 tonnes — mainly due to planned additional smelter offline days during the three-month high electricity demand winter season, a period of elevated power prices.
Meanwhile, the company’s coal production — a source of contention in its battle to buy Teck Resources — of 83.9m tonnes was in line with expectations.
Chief executive Gary Nagle said:“We are pleased to report a solid production performance from our underlying base business over the first nine months of the year, where our key copper, coal and zinc assets performed in line with expectations and previously communicated guidance.
Glencore is listed on the FTSE 100 of the London Stock Exchange, and will begin trading this morning 445.25p per share.
Production report: Glencore’s production declines
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