Building on the success of its activities in DR-Congo, the Zougois raw materials giant is expanding its ambitions for 2020.
“I am particularly pleased to note a robust operational performance in Katanga, whose ramp-up should lead to full use of capacities by the end of the year”, insists General Manager Ivan Glasenberg,
KEYSTONE
The virtually generalized erosion of the extraction and processing of raw materials by the behemoth of the Glencore sector in the first half of the year reflects the Zug colossus’s desire to preserve its resources while waiting for better days.
The production report released Friday indicates that a majority of extraction sites have remained in operation, notwithstanding temporary disruptions to comply with local or national guidelines, or pending improved market conditions.
The Mopani copper mine is still the subject of a standoff with the Zambian authorities, who refuse to suspend the site’s activities to carry out maintenance work.
In coal, the Colombian site of Prodeco is in the process of adjusting its plans to the structural difficulties of coal on the other side of the Atlantic, further exacerbated by the pandemic. Glencore has also asked the authorities to be able to place the mine in maintenance.
Faced with the paralysis of transport induced by the coronavirus at the global level, oil projects in Chad have also been put on hold since the end of April and until a date which remains to be determined.
The ferrous alloys activities in South Africa, faced with fierce competition and a surge in electricity prices, are being considered for the optimization of the cost structure. Glencore specifies on this subject that no alternative is yet to be ruled out.
“Robust performance”
“I am particularly pleased to see a robust operational performance in Katanga (in the Democratic Republic of the Congo), whose ramp-up should lead to full use of capacities by the end of the year”, nevertheless insists the Director General. , Ivan Glasenberg, quoted in the press release.
In the meantime, the production volumes of the overwhelming majority of raw materials exploited by Glencore have melted, like snow in the sun, especially for cobalt (-33%) and for ferrochrome (-42%). Nickel extraction stagnated over a year, while zinc mining was 3%.
Among the main sources of income, the volumes of coal fell 15% to 58.1 million tonnes and those of copper by 11% to 588,100 tonnes.
Glencore’s share in oil projects swelled from 17% to 2.6 million barrels.
With the exception of nickel and coal, for which targets have been revised downward over the year as a whole, Glencore is maintaining its roadmap as it is. Management does not seem to anticipate any catching up movement in the second half of the year. In annual comparison, only zinc production should take the lift.
The health crisis does not prevent the group from revising upwards its ambition for profitability in trading. The operating surplus (EBIT) in this segment in 2020 is expected to be at the high end of the long-term range of $ 2.2 billion to $ 3.2 billion.
(ATS / NXP)
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