Glencore Reports Mixed Q1 Output as Copper Rises and Coal Production Declines
Glencore Q1 Results: Copper Output Up 19% While Coal Production Falls 22% Amid Weather and Operational Disruptions
Diversified mining and commodities group Glencore reported mixed production results for the first quarter, with strong growth in copper output offset by declines in steelmaking coal and cobalt production, alongside stable performance in other segments.
Steelmaking coal output falls sharply
Glencore’s steelmaking coal production fell 22% year-on-year to 6.5 million tonnes. The decline was driven by pit sequencing changes at Elk Valley Resources in Canada, adverse weather conditions in Queensland, Australia, and a planned longwall move at the Oaky Creek operation.
Elk Valley output dropped by 1.3 million tonnes, or 20%, while Australian steelmaking coal production fell by 500,000 tonnes, or 29%.
Energy coal shows slight decline, regional variation
Energy coal production declined 2% year-on-year to 22.9 million tonnes. Higher output from Australian operations partially offset reduced production at the Cerrejón mine in Colombia.
Cerrejón produced 4 million tonnes of thermal coal in the quarter, down 20% year-on-year.
In Australia, thermal and semi-soft coal output rose 4% to 600,000 tonnes, supported by improved strip ratios at Rolleston, Bulga, and Collinsville. South African thermal coal production remained stable at 4.1 million tonnes.
Copper production surges on higher grades
Glencore’s own-sourced copper production increased 19% year-on-year to 199,600 tonnes.
The growth was driven by improved ore grades at its African operations and higher throughput and grades at the Antamina mine in Peru.
Cobalt output declines amid DRC export quotas
Cobalt production fell sharply by 39% year-on-year to 5,800 tonnes, following the introduction of export quotas in the Democratic Republic of the Congo (DRC) in late 2025.
The company said its DRC operations are now prioritising copper production, while cobalt inventories are being managed within quota limits. The quota system is expected to remain in place until at least the end of 2027.
Glencore expects cobalt exports of 22,800 tonnes this year and 18,800 tonnes in 2027. Excess production from operations such as KCC and Mutanda will continue to be stockpiled domestically until market conditions allow sales.
Chrome stable, ferrochrome sharply reduced
Chrome ore production from Glencore’s South African joint venture remained steady at 830,000 tonnes, broadly unchanged from the previous year.
However, ferrochrome production fell 95% year-on-year to 13,000 tonnes, as smelting operations remained largely on care and maintenance. A phased restart of the Lion smelter is currently underway.
CEO outlook: costs rising but margins supported
Chief Executive Officer Gary Nagle said first-quarter performance was broadly in line with expectations, with full-year 2026 guidance unchanged.
He noted that geopolitical tensions, particularly in the Middle East, have disrupted supply chains for crude oil, refined products, and sulphuric acid.
However, Glencore’s marketing division has helped support fuel supply to its operations.
Nagle also highlighted that the group’s diversified asset base leaves it in a net-long position in sulphuric acid, particularly across copper, zinc, and nickel operations.
While the conflict has contributed to higher input costs especially diesel and acid consumption he said these pressures are being partly offset by stronger commodity prices, particularly in copper, zinc, and energy coal.
He added that, based on current market conditions, the marketing division is on track to exceed the upper end of its long-term adjusted EBIT guidance range of $2.3 billion to $3.5 billion.
