Glencore Copper Output Falls 14% On Year In Q1 2022

28 Apr 2022 , 12:41 PM

Mining major Glencore came up with its latest quarterly production update today. It noted that production in Q1 2022 reflects a number of temporary impacts, including geotechnical challenges at Katanga and Covid-19 absenteeism, particularly in Australia, it noted. Reflecting the Q1 production performance, full-year guidance is reduced for copper and cobalt, but increased for nickel and ferrochrome, while the slower than expected ramp-up at Zhairem reduces full-year zinc production guidance by 9%.

The company’s sourced copper production of 257,800 tonnes was 43,400 tonnes (14%) lower than Q1 2021, reflecting temporary geotechnical constraints at Katanga (14,000 tonnes), the basis change arising from the sale of Ernest Henry in January 2022 (11,000 tonnes) and lower copper units produced within Glencore’s zinc business.

Own sourced zinc production of 241,500 tonnes was 41,000 tonnes (15%) lower than Q1 2021, reflecting Mount Isa Covid-19 related absenteeism (21,300 tonnes) and the planned mining cessation of Iscaycruz in Peru in Q3 2021 (20,300 tonnes).
Own sourced nickel production of 30,700 tonnes was 5,500 tonnes (22%) higher than Q1 2021, primarily reflecting Koniambo operating both production lines in 2022.

Coal production of 28.5 million tonnes was 4.0 million tonnes (16%) higher than Q1 2021, mainly reflecting higher attributable production from Cerrejón, following the acquisition in January 2022 of the remaining two-thirds interest that Glencore did not already own. On a like-for-like basis, the increase was 0.4 million tonnes (1%).

Entitlement interest oil production of 1.5 million barrels of oil equivalent was 0.4 million barrels (40%) higher than Q1 2021, due to commencement of the gas phase of the Alen project in Equatorial Guinea from March 2021.

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