Glencore’s Coal, Copper Zinc Output Decline After Mines ShutBy
Copper production declined 3% while coal output fell 12%
Miner and trader has previously announced mine closures
Glencore Plc’s production of copper, coal and zinc fell in the second quarter after the commodities trader closed mines in response to a rout in prices that’s eroded profits.
Zinc output slid 33 percent to 249,400 metric tons in the second quarter from a year earlier, the Baar, Switzerland-based company said in a statement on Thursday. Copper production declined 3 percent to 368,000 tons and coal output dropped 12 percent to 29.1 million tons.
A slump in metal, coal and iron-ore prices has forced miners around the world to shutter unprofitable operations. Billionaire Chief Executive Officer Ivan Glasenberg has engineered a turnaround plan at Glencore by selling assets, reining in spending and cutting costs to help cut its debt which stood at about $30 billion at the start of last year. The stock has more than doubled in London this year after ending 2015 as the second-worst performer in the FTSE 100 Index.
The company’s shares were little changed at 195.1 pence by 8:09 a.m. in London.
Nickel output gained 18 percent to 29,500 tons in the period while lead production rose 6 percent 74,300 tons.
The company increased its full-year estimate for copper output by about 20,000 tons to about 1.4 million tons due to a strong performance from its Collahuasi mine. It trimmed its coal prediction by 5 million tons to about 125 million tons. Its oil-production forecast was lowered by 200,000 barrels to about 8 million barrels after reducing output in Chad because of reduced prices.
Glencore has previously said it will reduce copper output by about 7.5 percent this year and cut zinc supply by a quarter as it adopted a “disciplined approach” during periods of low prices.
Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a senior independent non-executive director at Glencore.