Glencore reports 7% decline in South African coal output

GLENCORE on Thursday said thermal coal production in South Africa fell seven percent to 16.6 million tons in 2024 compared to 2023 in line with measures to match export sales to rail capacity.Commenting on prospect for 2025, the group said it would increase coal production if rail capacity was restored. There is evidence this might occur based on recent run-rates on the Mpumalanga to Richards Bay coal line.Transnet Freight Rail (TFR), the state-owned rail and ports company, was managing annualised coal exports of 52 to 57 million tons during the last six weeks of 2024. Total coal exports from South Africa in 2024 increased for the first time in seven years, according to data supplied by Richards Bay Coal Terminal (RBCT) this month. Exports rose 10% in 2024 to 52.1 million tons compared to just over 49Mt a year earlier.Glencore was commenting in its fourth quarter and full year production update in which it reported lower copper, cobalt, zinc, nickel and thermal coal production in 2024, in line with guidance.The company said it produced 951,600 tons of copper in 2024, down 6% from 1.01 million tons in 2023, the lower end of its outlook of between 950,000 and 1.01 million tons, according to a report by Reuters.Copper is used in electric vehicle wiring and batteries, green energy plants and data centres. Grade erosion at existing mines is expected to exacerbate a predicted supply gap caused by rising demand for the energy transition, the newswire said.Glencore said it will provide production guidance for 2025 and beyond at its annual financial results on February 19.It had previously said it expects its full-year marketing earnings before interest and tax (EBIT) in the $3bn to $3.5bn range, around the top end of its long-term forecast range of $2.2bn-$3.2bn.The trading division, whose profit hit a record $6.4bn in 2022, includes coal, oil, liquefied natural gas and related products, as well as metals.The miner has kept its coal business after concluding the purchase of Teck Resources’ coking coal assets and securing backing from a majority of its investors who see lucrative earnings from the fossil fuel.Its 2024 steelmaking coal production increased to 19.9 million tons from 7.5 million tons.Glencore is one of the largest producers and exporters of thermal coal, mining 99.6 million tons in 2024, down from 106.1 million tons in 2023.Focus will inevitably fall on Glencore’s merger and acquisition ambitions at the its results presentation next month. This follows reports that it held talks with Rio Tinto in October and November about a possible combination of the two companies.Analysts questioned how such a transaction would work considering Rio Tinto’s disaffection with coal and the starkly differing cultures of the two companies.Glencore and Rio Tinto haven’t commented on the speculation.The post Glencore reports 7% decline in South African coal output appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com