Glencore enjoys surge in copper production as zinc and lead disappoint
Mining giant Glencore has reported a surge in copper production of 26 per cent to 1.5m tonnes, while coal output rose four per cent in the year to 31 December. The strong performance of copper and coal helped offset weaker results from zinc and lead.
Zinc output fell by nine per cent while lead suffered a decline of two per cent.
The group's strongest growth was seen in South America, Africa and Australia. African copper increased 43 per cent to 398,600 tonnes, as expansion projects Katanga and Mutanda managed to grow production, both reaching 200,000 tonnes per annum by 31 December.
The company's Chilean coper mine Collahuasi increased production 58 per cent to 195,600 tonnes. Glencore produced a total of 750,600 tonnes of copper cathode last year – a 21 per cent increase from the previous year.
Charlie Long, equity analyst as Sanlam Securities, commented:
GlencoreXstrata is improving its diversification with regards exposure to different metals and minerals, including oil. Considering its trading business, which in H1 contributed $1.2bn of $3.2b EBIT, the group has a well-diversified portfolio, arguably more akin to BHP Billiton than the even more iron ore heavy Rio Tinto.