Glencore rallies despite decline in copper output

The world’s biggest commodity trader Glencore, run by South African CEO Ivan Glasenberg, released an update about its mining production for last year on Tuesday, which saw its share price jump by more than 4%.

But the company’s share price remains around its lowest levels in three years as it struggles with copper production in Africa, as well as legal problems. It is being investigated for bribery by UK authorities, and is also faces ongoing corruption probes in the US and Brazil.

On Tuesday, Glencore reported declines in some of the output from its mines, but kept its profit outlook for the year unchanged.

Its copper production fell by 6% to 1.4 million tonnes in 2019. The decline was in part due to its closure of the Mutanda mine in the Democratic Republic of Congo last year, as well as a shutdown of its Zambian Mopani mine due to the refurbishment of its smelter.

This was partially offset by a ramp-up at its Katanga mine in the DRC.

Its nickel production also declined, while cobalt output rose by 10% of 46,300 tonnes, and its zinc production of 1 million tonnes was flat.  

Coal production rose by 8% to 139.5 million tonnes, while oil production of 5.5 million barrels was 19% higher than in 2018. This was thanks to a drilling campaign in Chad and the first oil from the Bolongo field in Cameroon.