Glencore Boosts Copper-Equivalent Output by 5%, Targets $1 Billion in Cost Cuts by 2026
Glencore Reports 5% Rise in Copper Equivalent Output, Unveils $1 Billion in Cost-Saving Opportunities
Diversified mining giant Glencore reported a 5% year-on-year increase in copper equivalent production for the six months ending June 30, 2025, driven by the integration of Elk Valley Resources’ steelmaking coal volumes.
According to the Johannesburg Stock Exchange-listed company, steelmaking coal production totaled 15.7 million tonnes, with 12.7 million tonnes contributed by Elk Valley Resources in Canada.
Australian steelmaking coal output fell 12% to 3 million tonnes, primarily due to a temporary suspension at Oaky Creek following a water inrush.
Energy coal production reached 48.3 million tonnes, broadly in line with the previous year, supported by higher output from Australian operations.
Zinc production climbed 12% year-on-year to 465,200 tonnes, benefiting from higher grades at Antamina and increased volumes at McArthur River.
However, copper output fell 26% to 343,900 tonnes, mainly due to lower head grades and recoveries in line with planned mine sequencing.
In contrast, cobalt production rose 19% to 18,900 tonnes, largely driven by improved grades and volumes at Mutanda in the Democratic Republic of Congo.
Ferrochrome production declined 28% to 433,000 tonnes, as low smelting margins prompted Glencore to suspend operations at its Boshoek and Wonderkop smelters in South Africa. The Lion smelter is also temporarily offline for scheduled maintenance and rebuilds.
After adjusting for 5,000 tonnes of Koniambo output before it was placed on care and maintenance, nickel production dropped 7% to 36,600 tonnes, impacted by maintenance downtime at Murrin Murrin.
CEO Gary Nagle highlighted ongoing efforts to streamline operations and unlock further value-accretive growth.
A comprehensive review of Glencore’s industrial asset portfolio identified $1 billion in potential cost savings, expected to be fully realized by the end of 2026.
“Recent reviews confirmed opportunities to optimise our operating structure, enhance technical excellence, and improve departmental focus,” Nagle said in a statement released to Mining Weekly.
Some cost-saving benefits are already materialising in the second half of 2025, with more details set to be announced during Glencore’s half-year results presentation on August 6.
Glencore remains confident in meeting its full-year production targets, with narrowed guidance ranges reflecting performance to date.
The company reaffirmed its commitment to safe, reliable production and sustained value creation across its industrial asset base.
The long-term, through-the-cycle marketing-adjusted EBIT guidance has been raised to $2.3 billion to $3.5 billion annually, up from the previous range of $2.2 billion to $3.2 billion.
This represents a midpoint increase of 16%, from $2.5 billion to $2.9 billion.
