The Conversation (0)
As part of its Q3 production report, Glencore Plc (LSE:GLEN) stated that it would reduce its copper production by a larger amount than previously anticipated. The miner is now planning to reduce its mined copper production by 455,000 tonnes by the end of 2017. Glencore also announced plans to reduce its zinc production.
As part of its Q3 production report, Glencore Plc (LSE:GLEN) stated that it would reduce its copper production by a larger amount than previously anticipated. The miner is now planning to reduce its mined copper production by 455,000 tonnes by the end of 2017. Glencore also announced plans to reduce its zinc production.
As quoted in the press release:
- The shutdown and restart plans for Katanga and Mopani have been completed.
- The suspension of processing operations at Katanga was implemented in the days following our announcement on 7 September, with no incremental copper production expected during the remainder of 2015 and 2016. Under the finalised plan, a phased restart and ramp-up is planned for H1 2017.
- At Mopani, post completion of the optimisation study, the smelter will continue to operate either at reduced level or in campaigns to service ongoing long-term third party concentrate purchase contracts. In order to run the smelter at an optimal level, some own sourced concentrates primarily from the development of the Synclinorium and Mopani Deeps projects will be processed. We have deferred investment in the new concentrator to 2017, and full production will be resumed in 2018 upon completion of this project.
- We noted on 7 September that these changes would reduce production by approximately 400,000 tonnes of copper over 18 months compared to previous plans. With the phased approach to restarting Katanga and deferral of Mopani’s concentrator investment, we revise this estimate to 455,000 tonnes by end 2017. Our guidance for 2015 full year copper production has been reduced accordingly (see page 21).