Higher zinc and oil production is expected to stabilize Glencore’s coal and nickel volumes over the next three years.
According to the mining company’s latest outlook, zinc production across all its mines is likely to conclude 2019 at 1,110kt, then increase to 1,265kt and 1,400kt in 2020 and 2021, respectively.
The company plans to achieve total copper production of approximately 1,385kt (1.38mn mt) in 2019, which is likely to decrease to 1,300kt in 2020 before slightly rising to 1,335kt in 2021.
The company will ramp up operational efficiencies across all mining asses, beginning with its Katanga copper mine, as well as restarting its Mopani smelter, in 2020. In addition to delivering its 2020 annual production guidance of 270kt of copper and 29kt of cobalt from Katanga, Glencore will commission its new Katanga acid plant in the first half of the year.
A management transition will alsoc occur during this period. Ivan Glasenberg, Glencore’s chief executive officer, told investors and analysts the company intends to introduce new leadership in light of his planned retirement in the next three to five years.
Glencore’s outlook for base metals is positive, despite curtailed demand in 2019. Glassenberg said the company is in good position to service new major sources of demand for copper from decarbonisation initiatives, as well as nickel and cobalt, which are major components of electric vehicles.