Glencore (LON:GLEN) reported a 5% increase in South African energy coal production during the first quarter of 2025, with output rising to 4.2 million tonnes. The company credited the increase to improved fleet performance and the initiation of new stockpile reclamation activities.
Despite this regional boost, Glencore’s overall energy coal production dropped by 7% to 23.4 million tonnes. The global decline reflected the planned closure of two mines in Australia — Glendell and Integra. Energy coal volumes at Cerrejón in Colombia also fell by 5%, a reduction that the company described as a market rebalancing measure. Glencore stated that despite these declines, full-year production guidance remains unchanged.
In ferrochrome, the company’s South African operations produced 277,000 tonnes in the first quarter, down 7% from the same period last year. The company attributed the drop to ongoing pressure on smelting conversion margins. As part of a broader review of smelting sustainability, Glencore will indefinitely suspend the Boshoek smelter in North West from May and the Wonderkop smelter, also in North West, from June. The more energy-efficient Lion smelter in Mpumalanga will continue operations.
Glencore’s copper production fell sharply. First-quarter own-sourced copper output came in at 167,900 tonnes, a 30% decline year-on-year. In contrast, cobalt production jumped by 44% to 9,500 tonnes. CEO Gary Nagle said that copper production had a slow start but predicted stronger performance in the remaining quarters of 2025. He pointed to improvements at several sites. In Chile, the Collahuasi operation is expected to meet targets following pit reorientation, an expanded truck fleet, and better water availability. At Peru’s Antapaccay mine, the initially high strip ratio is expected to drop throughout the year, potentially increasing output in the second half. In the Democratic Republic of Congo, the Kamoto Copper Company is transitioning from ore stock feed to run-of-mine feed, a shift anticipated to improve throughput and production.
In steelmaking coal, the company reported solid numbers. Canadian operations under Elk Valley Resources produced 6.6 million tonnes in the first quarter. Total steelmaking coal production across all assets stood at 8.3 million tonnes. Nagle described volumes in both steelmaking and energy coal segments as “tracking well.”
Zinc production reached 213,600 tonnes in the first quarter, up 4% from the previous year. The increase was largely driven by stronger performance at the Antamina joint venture in Peru and Australian assets.
On the marketing side, Glencore reported a slower first quarter but maintained its full-year earnings forecast. The company expects its Marketing segment to finish the year within the previously set $2.2 billion to $3.2 billion range, likely near the midpoint.
Looking ahead, Nagle warned that commodity markets have become more volatile since the end of the quarter. He attributed the instability to global financial market movements and uncertainty surrounding new U.S. tariffs. He emphasized that Glencore has prioritized risk management in response to these developments, particularly given its exposure to complex supply chains across the U.S., China, Europe, and Canada.
Although no major disruptions to commodity trade routes have occurred so far, Glencore expects potential shifts in physical trade flows in the coming months due to evolving tariff structures. Nagle suggested that these changes could create new opportunities for the company’s Marketing division.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
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