Glencore has reported its 1Q16 production results. The global mining giant indicated that the proactive production cuts announced and actioned in 2015 led to period on period production reductions in copper, zinc, lead, coal and oil, reflecting the company’s disciplined approach to supply at low points in the commodity cycle.
Coal production of 29.7 million t was 5.9 million t (17%) down compared to the previous year, mainly due to the initial part-closure and subsequent placement of Optimum Coal into business rescue in 3Q15, leading to its ultimate sale. In Colombia, some mining restrictions also contributed.
Australian metallurgical coal production was 1.2 million t – 0.3 million t (20%) lower than the comparable period, mainly related to temporary geological issues at Oaky Creek.
Australian thermal and semi-soft coal production was 14.3 million t. The company reported this was in line with the comparable period.
South African thermal coal production totalled 7.3 million t, which was 4.1 million t (36%) lower than the comparable period. Glencore indicated that this reflects the loss of control of Optimum Coal from August 2015 and the closures of Middelkraal and South Witbank, partly offset by increased production at the larger Tweefontein, iMpunzi and Goedgevonden mines.
Prodeco coal production was 4.3 million t – 1.1 million t (20%) lower than the comparable period, reflecting a programme of slowing production in line with a weaker market.
Cerrejón production came in at 2.6 million t, which was 0.4 million t (13%) below the comparable period, reflecting ongoing restrictions, mainly related to the need to limit dust creation as the region continues to endure a multi-year drought.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/04052016/glencore-sees-declines-in-coal-production-for-1q16-707/