#Glencore Xstrata#African copper production#Mutanda mine#D#Glencore Xstrata

These Three Assets Boosted Glencore Xstrata Copper Output by 24 Percent

Glencore Xstrata hit market forecasts for the quarter, reaching a 24 percent increase in copper production compared to the same period of production fro...

Admin
|May 6|magazine5 min read

Glencore Xstrata hit market forecasts for the quarter, reaching a 24 percent increase in copper production compared to the same period of production from 2013. When commenting on the positive news, representatives from the company said the performance was “strong and in line with expectations.”

Over the three month period, copper production reached a total of 382,000 tons for the mining giant. Specifically, three of Glencore’s assets were responsible for the boosts in production.

African copper production in itself rose 27 percent during the first quarter, to 106,400 tons. The increase was driven by the expanding operations at the Mutanda mine in the Democratic Republic of Congo, as well as heightened production at the Mopani and Katanga operations.  Glencore expects to see continued growth in the region especially from the Mutanda mine, where the next expansion phase is reaching its completion.

In Australia, the Ernest Henry mine saw a boost in production, while higher grades of copper created improved output at the Collahuasi and Antamina mines in South America.

With the 24 percent increase in production, copper has proved to play an increasingly important role in Glencore Xstrata’s portfolio – copper accounted for nearly half of their earnings last year.

"Glencore's African copper assets remain its strongest source of high quality revenue growth, in our view," Bernstein Research analysts commented.

Zinc production, another large contributor to Glencore Xstrata’s profits, declined 18 percent. This was a result of the closure of two aging mining in June of 2013. Energy-wise, coal production was up 4 percent for Glencore, and their agricultural commodities output increased by 25 percent.