Glencore first half copper production falls 9%

Own-sourced zinc production of 570,800 tonnes was up 13%, reflecting an increase of grades and production at the Antamina mine in Peru and “generally solid performances across the portfolio”.

The fall in copper reflected a transition to mining a greater portion of copper/zinc ores at Antamina, temporary lower copper grades at Antapaccay, the effects of wet weather at Mutanda resulting in reduced ore throughput, and lower production / pit stability issues at Alumbrera as it nears end of life, Glencore said.

Own-sourced nickel production of 51,200 tonnes was down 10%, reflecting scheduled maintenance at Murrin and INO, partly offset by the stabilising and improving performance at Koniambo.

Attributable ferrochrome production of 836,000 tonnes was up 10%, reflecting more furnace production time, period over period, and strong furnace operational performances.

Coal production of 61.1 million tonnes was up 4% on H1 2016, mainly reflecting planned increases in the Australian coal portfolio.

Glencore's oil entitlement production interest fell 39% to 2.6m barrels after natural field decline with no drilling activity.

Also on Thursday, Glencore said it has agreed to buy a 49% interest in the Hunter Valley Operations coal mine in New South Wales from Yancoal and form a joint venture to operate the mine.

Glencore will pay Yancoal $1.14bn plus around $67m in royalty payments over five years for the stake in the coal mine.