Glencore has announced plans to nearly double its copper production over the next decade, seeking to reverse a significant decline in output. The target was revealed at the company’s capital markets briefing, the first in three years, as Glencore aims to reassure investors about its growth prospects following a sharp drop in copper production. Miners globally are striving to extract more of the metal amid soaring prices, but Glencore’s copper production is projected to be approximately 40% lower this year compared to 2018, with further reductions expected next year. Glencore is a leading integrated producer and marketer of commodities, with worldwide activities in the mining, refining, processing, storage and transport of metals and minerals, energy products and agricultural products. The company also provides financial services to producers and consumers of commodities.
Glencore’s growth strategy includes a $US9.5 billion new mine in Argentina and the reactivation of a mothballed operation in the same country. This initiative may help CEO Gary Nagle address investor dissatisfaction stemming from missed production targets. As part of a broader operational review aimed at cutting costs and enhancing performance, the company has also reduced its workforce by 1,000 jobs.
Gary Nagle acknowledged concerns about the company’s ability to deliver on its promises during the presentation. He stated, “We’ve had criticism on our ability to deliver. We have made substantial changes to our business. That allows us to be very confident that what we present today will be delivered.”
Following the announcement, Glencore shares experienced a surge of up to 6.2% in London trading, recovering from their lowest point since 2020 earlier this year.
