Glencore cuts FY copper production guidance

Mining conglomerate Glencore cut its full year copper production guidance as first quarter output fell 7% due to several factors, including flooding in Australia and safety-related stoppages and smelter outages in Zambia.

Copper production for the period was 320,700 tonnes, down 24,700 tonnes. The Swiss-based company said it now expected to produce 1,460 kilotonnes plus or minus 30 kilotonnes.

The previous forecast was 1,540 kilotonnes plus or minus 45 kilotonnes. First quarter output was also hit by depletion at the Argentinian Alumbrera mine and sale of the Punitaqui operation.

Own-sourced cobalt production was up 56% year-on-year to 10,900 tonnes, adding that the figure included 3,500 tonnes from Katanga, which was managing through a period of generally excess uranium content in its cobalt material, constraining exports.

“Katanga made no cobalt sales in Q1 2019. From April 2019, the export and sale of a limited quantity of cobalt, complying with appropriate regulations, was allowed to resume,” Glencore said.

“Such resumption of exports remains subject to the relevant DRC export procedures, which include continued monitoring by the relevant authorities.”

Glencore last week said the US Commodity Futures Trading Commission was investigating whether it may have violated certain regulations through “corrupt practices”.