27 July 2017
2017 Half-Year Production Report
To view the full report please click here: http://www.glencore.com/assets/investors/doc/reports_and_results/2017/GLEN-2017-Q2-ProductionReport.pdf
- Own-sourced copper production of 642,900 tonnes was down 9% on H1 2016, reflecting a transition to mining a greater portion of copper/zinc ores at Antamina (noting concurrent higher zinc grades / production), temporary lower copper grades at Antapaccay, the effects of wet weather at Mutanda resulting in reduced ore throughput, and lower production / pit stability issues at Alumbrera as it nears end of life.
- Own-sourced zinc production of 570,800 tonnes was up 13%, reflecting the Antamina increase noted above and generally solid performances across the portfolio.
- Own-sourced nickel production of 51,200 tonnes was down 10%, reflecting scheduled maintenance at Murrin and INO, partly offset by the stabilising and improving performance at Koniambo.
- Attributable ferrochrome production of 836,000 tonnes was up 10%, reflecting more furnace production time, period over period, and strong furnace operational performances.
- Coal production of 61.1 million tonnes was up 4% on H1 2016, mainly reflecting planned increases in the Australian coal portfolio.
- Glencore’s oil entitlement production interest of 2.6 million barrels was down 39% on H1 2016, reflecting natural field decline with no drilling activity. As previously noted, a single-rig drilling campaign has recommenced in Chad in H2 2017.
- The announced sales of Rosh Pinah and Perkoa to Trevali Mining are subject to customary closing conditions, with transaction currently expected to complete in August. Zinc full year production guidance on page 18 has been adjusted to reflect the expected timing of this transaction.
- Other changes in full year production guidance on page 18 reflect the impact of operating conditions / mine plan changes enacted in the year to date.
- Following the sale of 50% of Glencore Agri, this business and segment is now fully reported as Marketing. Production information has therefore not been included in this report, which focuses on Glencore’s Industrial Assets. Including this effect, full year 2017 Marketing EBIT guidance range is being increased to $2.4 billion to $2.7 billion (previously $2.3 billion to $2.6 billion).
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Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.
With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 155,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.