Glencore Xstrata Says First-Half Copper Production Gains 20%

Glencore Xstrata Plc (GLEN), the mining company created in a $29 billion deal three months ago, said first-half copper production rose 20 percent after boosting output from mines in Africa.

Output was 673,400 metric tons in the six months ended June, Baar, Switzerland-based Glencore said today in a statement. The figures include operations acquired from Xstrata Plc.

Glencore completed a 15-month takeover of Xstrata in May to create the fourth-largest mining company with a market value of $63 billion. Copper and coal sales are the biggest contributor to earnings. The group has interests in about 35 coal mines in Colombia, Africa and Australia, accounting for about 10 percent of global seaborne supplies of the fuel.

Total coal output gained 4 percent to 67.8 million tons, it said. Zinc output fell 3 percent to 729,500 tons, lead dropped 5 percent to 153,200 tons and nickel rose 1 percent to 54,600 tons.

The stock advanced 2 percent to close at 307.45 pence in London trading yesterday. It’s down 12 percent this year.

Spending on new projects is estimated at $29 billion in the next three years, Glencore said in May. After 2015 it’s set to “materially decline” to $4 billion to $5 billion.

The group employs about 190,000 people in more than 50 countries across its industrial and trading divisions. The takeover of Xstrata was completed almost two years after Glencore’s $10 billion initial public offering that ended more than three decades of it operating as a closely held company.

Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a non-executive director of Glencore Xstrata.

To contact the reporter on this story: Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net

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