Glencore Charts Bold Copper Expansion as It Cuts 2026 Output Forecast
Glencore Unveils Major Copper Expansion Plan but Lowers 2026 Output Target
Glencore Plc has announced an ambitious plan to nearly double its copper production over the next decade, even as it scales back expectations for 2026. The strategy, revealed during the company’s first capital markets day in three years, aims to restore investor confidence following a steep decline in output.
Copper prices are currently at record highs, yet Glencore is on track to produce about 40% less copper this year compared with 2018, with volumes expected to fall further next year.
The growth blueprint includes a $9.5 billion new mine in Argentina and the restart of another previously idled operation in the country. Glencore CEO Gary Nagle said the company has made “substantial changes” to improve performance and assure investors that future plans are achievable. As part of a broad operational overhaul, Glencore has cut 1,000 jobs to streamline costs and boost efficiency.
Shares surged as much as 6.2% in London following the announcement, recovering from their lowest levels since 2020 earlier this year.
Despite its long-term optimism, Glencore reduced its 2026 copper production forecast to 810,000–870,000 tons, down from a previous target of 930,000 tons. The downgrade follows challenges at the Collahuasi mine in Chile, a joint venture with Anglo American. The miner also trimmed zinc and cobalt guidance for the year.
Still, Glencore expects 2026 to mark the low point, with output beginning to recover in 2027. The company reaffirmed its plan to increase copper production to 1 million tons by 2028, supported by the restart of the Bajo de la Alumbrera mine in northwestern Argentina.
That mine, closed since 2018 due to ore depletion, a major rock slide, and community opposition, is now being revived amid government efforts to attract foreign investment.
Glencore is targeting $1 billion in recurring cost savings by the end of next year and highlighted several brownfield expansion opportunities in Argentina, Peru, the Democratic Republic of Congo, and at Collahuasi.
The plan also includes construction of the El Pachón project in Argentina, estimated at $9.5 billion. Glencore said it may seek partners to reduce financial and operational risks.
Historically, the miner has avoided building new mines—a stance championed by former CEO Ivan Glasenberg, who argued that new projects often drove down commodity prices. But Nagle, Glasenberg’s chosen successor, said tightening market conditions have fundamentally changed the outlook for copper.
“Now is the time to sanction these projects,” he said, emphasizing that new supply will not undercut existing operations.
Rival Rio Tinto is expected to unveil its own business simplification strategy shortly, signaling intensifying competition in the race to secure future copper resources.
