Johannesburg — Miner and trader Glencore on Friday said it expects 2021 earnings before interest and tax (EBIT) for its trading division to top its $2.2 billion to $3.2 billion long-term guidance but stuck to its production guidance.
High prices for coal and other commodities are helping miners despite lower production in some cases, while volatile prices have offered trading opportunities.
Glencore reported a 9% drop in coal production for the first nine months of the year due to its Prodeco mines in Colombia being suspended and lower domestic production in South Africa.
CEO Gary Nagle said Glencore has recovered from market-driven production cuts in its Australian coal assets last year, thanks to an improvement in energy market demand and prices.
Coal prices have surged to all-time highs this year due to a squeeze in supply.
Ferrochrome production jumped 65% year on year to 1,071,000 tonnes as South African mines ramped back up after a COVID-19 lockdown.
Glencore’s own-sourced nickel production was down 13% year to date to 71,100 tonnes due to planned maintenance at Australian mine Murrin Murrin and operating issues at its Koniambo mine in New Caledonia.
Copper production fell 4% to 895,500 tonnes because of lower grades.
Cobalt production from Glencore’s African mines jumped 11% to 20,900 tonnes of cobalt in hydroxide helped by a 2,100-tonne contribution from the Mutanda mine in Democratic Republic of Congo, which the company is restarting.
- Reuters (Reporting by Helen Reid, editing by William Maclean and Jason Neely)
- Follow us on twitter