Glencore reports reduced production

Glencore, one of the world’s largest global diversified natural resource companies, has reported reductions in its production in its 2016 Half-Year production report.

Production was down period-on-period in commodities where the company previously announced, and are delivering on, proactive supply reductions (copper, zinc, lead, coal and oil).

Coal production was 14% lower than 1H15, coming in at 58.8 million t – a reduction of 9.9 million t. Glencore reports this to be a reflection of production curtailments, disposal of Optimum Coal, the scheduled closures of two mines and some volume reductions and restrictions in Colombia.

Australian metallurgical coal production totalled 2 million t, 26% (0.7 million t) lower 1H15, reflecting geological issues at Oaky Creek and production at Tahmoor temporarily delayed by longwall preparatory work.

Australian thermal and semi-soft came in at 29.5 million t. This was was 1.8 million t (6%) higher than 1H15, a period in which, poor ground conditions at Bulga Underground and a longwall move at Ulan West impacted volumes.

South African thermal production finished at 14.1 million t – 8.2 million t (37%) lower than 1H15. Glencore indicated this was mainly due to the suspension of certain production within Optimum Coal and the closures of the Middelkraal and South Witbank mines.

Prodeco’s production was 1.8 million t (18%) lower than 1H15, coming in at 8.3 million t. The company reported this to be primarily due to volumes being proactively reduced in response to market conditions.

Attributable production from Cerrejón of 4.9 million tonnes was 1 million t (17%) lower than 1H15, mainly due to environmental restrictions introduced to improve the management of dust emissions and unusually heavy rainfall in May and June.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/coal/12082016/glencore-production-down-for-1h16-2215/