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Glencore has posted a 5% increase in copper-equivalent production for the six months ending June 30, 2025, driven by the integration of steelmaking coal volumes from Elk Valley Resources (EVR) in Canada.
By Ryan Chigoche
The diversified miner said the rise reflects operational stability across most commodities, despite challenges in some areas, and comes as the company pushes through a wide-ranging cost optimisation programme.
Steelmaking coal production reached 15.7 million tonnes in the first half of the year, with EVR accounting for 12.7 million tonnes of the total. Australian steelmaking coal operations contributed three million tonnes, a 12% year-on-year decrease caused by the temporary suspension of Oaky Creek following a water inrush.
Energy coal output remained broadly steady at 48.3 million tonnes, supported by stronger volumes from Australia that helped offset production variances elsewhere.
Zinc production rose 12% to 465,200 tonnes, boosted by higher grades at Antamina in Peru and better output from the McArthur River mine in Australia. Copper production, however, fell 26% to 343,900 tonnes, as planned mining sequences resulted in lower head grades and recoveries.
Cobalt output increased 19% to 18,900 tonnes, benefiting from improved grades and higher production from the Mutanda operation in the Democratic Republic of Congo.
Ferrochrome production dropped 28% to 433,000 tonnes due to persistent pressure on smelting margins, which prompted Glencore to suspend operations at the Boshoek and Wonderkop smelters in South Africa.
The Lion smelter is also temporarily offline for annual maintenance and scheduled rebuilds. Nickel production, excluding 5,000 tonnes from Koniambo before it was transitioned to care and maintenance, was 7% lower at 36,600 tonnes, largely due to maintenance downtime at the Murrin Murrin facility in Australia.
Glencore CEO Gary Nagle said the group is making solid progress in streamlining its industrial asset portfolio and capturing efficiencies across its operations. A detailed review carried out during the first half identified $1 billion in cost-saving opportunities across various business units.
These savings, he said, are expected to be fully realised by the end of 2026, with some benefits already flowing through in the second half of 2025. Further details will be disclosed during the company’s half-year results presentation on August 6.
Nagle added that the group has narrowed its full-year production guidance to reflect the operational performance achieved so far this year. He emphasised Glencore’s focus on maintaining safe, reliable production and generating value-accretive growth from its diversified industrial asset base over the coming years.
In addition to operational improvements, Glencore has upgraded its through-the-cycle marketing adjusted earnings before interest and tax (EBIT) guidance range to $2.3 billion–$3.5 billion per year, up from the previous $2.2 billion–$3.2 billion range. The midpoint now stands at $2.9 billion, representing a 16% increase from the earlier $2.5 billion estimate.
The earnings outlook has been lifted despite softer prices for some base metals and bulk commodities in the first half of the year. Analysts say Glencore’s ability to raise guidance reflects the resilience of its marketing operations and the benefits of its diversified portfolio, which includes exposure to battery metals, energy transition commodities, and long-life coal assets.
Glencore’s latest update follows a period of significant portfolio reshaping and cost discipline aimed at navigating uncertain commodity markets. With commodity demand growth still mixed across regions, the company said it remains focused on operational efficiency and capital discipline while preparing for a potential market recovery in 2026.
Glencore’s production trends and cost-saving strategies hold particular relevance for Zimbabwe’s mining sector, especially as the country expands its focus on battery metals like cobalt and nickel.
The company’s increase in cobalt output from the Democratic Republic of Congo, a key regional neighbour, highlights the growing importance of high-grade, responsibly sourced battery minerals in Southern Africa.
