Coal news and updates

Glencore reports higher copper, coal production

Glencore plc increased first-half production of its most profitable metals and minerals.

The world's biggest commodities trader and fourth-largest mining company said copper production rose 13% from a year earlier to 741,000 tons, thanks largely to increased capacity at its Congolese operations and better performance from the Collahuasi mine in Chile.

Coal output rose 5% to 71.2 million tons, with an expansion at its Australian mines mitigating some of the effects of a 32-day strike at its Cerrejón mine in Colombia.

Copper and coal made up most of Glencore's mining profit last year.

The Switzerland-based company on Wednesday said the closure of two Canadian mines last year was partly to blame for an 11% decline in zinc production, to 650,400 tons.

The closure of nickel mines in Australia and the Dominican Republic was reflected in an 8% reduction in output of the stainless-steel ingredient, to 49,100 tons.

Zinc accounted for 8% of Glencore's profit last year, while nickel's impact on the bottom line was 1% of earnings before interest and tax.

The recent acquisition of Chad-focused oil company Caracal Energy Inc. meant that Glencore was able to increase crude production by 41% to 14 million barrels in the first half.

Ferrochrome production rose 16% to 652,000 tons, for which Glencore credited improved capacity at its South African operations.

Analysts said the figures were in line with forecasts. Citi said it didn't expect the report to have a meaningful impact ahead of Glencore's first-half earnings, which are set for release next Wednesday.

Source: Wall Street Journal