2017 Half-Year Production Report

 

Production from own sources - Total¹

			H1 2017	H1 2016	Change %
Copper		kt	642.9	703.0	(9)
Zinc		kt	570.8	506.5	13
Lead		kt	139.2	145.3	(4)
Nickel		kt	51.2	57.1	(10)
Gold		koz	524	472	11
Silver		koz	19,510	18,813	4
Cobalt		kt	12.7	12.7	-
Ferrochrome		kt	836	762	10
Platinum		koz	65	81	(20)
Palladium		koz	82	120	(32)
Rhodium		koz	8	8	-
Vanadium Pentoxide		mlb	9.5	10.1	(6)

 

 

Production from own sources - Copper assets¹

			H1 2017	H1 2016	Change %
African Copper (Katanga, Mutanda, Mopani)
	Copper metal2	kt	111.5	130.2	(14)
	Cobalt3	kt	11.2	10.9	3
Collahuasi4
	Copper metal	kt	-	1.5	(100)
	Copper in concentrates	kt	108.6	105.8	3
	Silver in concentrates	koz	1,522	1,650	(8)
Antamina5
	Copper in concentrates	kt	70.3	76.9	(9)
	Zinc in concentrates	kt	59.0	21.8	171
	Silver in concentrates	koz	3,327	3,677	(10)
Other South America (Alumbrera, Lomas Bayas, Antapaccay, Punitaqui)
	Copper metal	kt	41.0	39.3	4
	Copper in concentrates	kt	119.8	146.1	(18)
	Gold in concentrates and in doré	koz	163	171	(5)
	Silver in concentrates and in doré	koz	883	1,067	(17)
Australia (Mount Isa, Ernest Henry, Townsville, Cobar)
	Copper metal	kt	91.0	98.3	(7)
	Copper in concentrates	kt	25.4	26.3	(3)
	Gold	koz	38	36	6
	Silver	koz	741	749	(1)
Total Copper department
	Copper	kt	567.6	624.4	(9)
	Cobalt	kt	11.2	10.9	3
	Zinc	kt	59.0	21.8	171
	Gold	koz	201	207	(3)
	Silver	koz	6,473	7,143	(9)

 

 

Production from own sources - Zinc assets¹

			H1 2017	H1 2016	Change %
Kazzinc
	Zinc metal	kt	102.2	89.2	15
	Lead metal	kt	25.1	24.1	4
	Lead in concentrates	kt	3.9	7.8	(50)
	Copper metal2	kt	27.9	25.1	11
	Gold	koz	306	243	26
	Silver	koz	2,854	2,098	36
	Silver in concentrates	koz	106	202	(48)
Australia (Mount Isa, McArthur River)
	Zinc in concentrates	kt	217.8	231.7	(6)
	Lead in concentrates	kt	78.9	88.4	(11)
	Silver in concentrates	koz	3,743	4,172	(10)
North America (Matagami, Kidd)
	Zinc in concentrates	kt	71.2	58.3	22
	Copper in concentrates	kt	23.6	24.0	(2)
	Silver in concentrates	koz	1,505	879	71
Other Zinc: South America (Aguilar, Los Quenuales, Sinchi Wayra)
	Zinc in concentrates	kt	51.2	49.4	4
	Lead metal	kt	6.2	6.1	2
	Lead in concentrates	kt	22.7	15.6	46
	Copper in concentrates	kt	1.1	0.9	22
	Silver metal	koz	290	306	(5)
	Silver in concentrates	koz	4,092	3,480	18
Other Zinc: Africa (Rosh Pinah, Perkoa)
	Zinc in concentrates	kt	69.4	56.1	24
	Lead in concentrates	kt	2.4	3.3	(27)
	Silver in concentrates	koz	121	127	(5)
Total Zinc department
	Zinc	kt	511.8	484.7	6
	Lead	kt	139.2	145.3	(4)
	Copper	kt	52.6	50.0	5
	Gold	koz	306	243	26
	Silver	koz	12,711	11,264	13

 

 

Production from own sources - Nickel assets¹

			H1 2017	H1 2016	Change %
Integrated Nickel Operations ("INO") (Sudbury, Raglan, Nikkelverk)
	Nickel metal	kt	29.4	33.5	(12)
	Nickel in concentrates	kt	0.3	0.3	-
	Copper metal	kt	8.1	8.4	(4)
	Copper in concentrates	kt	14.6	20.2	(28)
	Cobalt metal	kt	0.4	0.5	(20)
	Gold	koz	17	21	(19)
	Silver	koz	326	406	(20)
	Platinum	koz	36	50	(28)
	Palladium	koz	64	101	(37)
	Rhodium	koz	3	3	-
Murrin Murrin
	Nickel metal	kt	13.5	17.7	(24)
	Cobalt metal	kt	1.1	1.3	(15)
Koniambo	Nickel in ferronickel	kt	8.0	5.6	43
Total Nickel department
	Nickel	kt	51.2	57.1	(10)
	Copper	kt	22.7	28.6	(21)
	Cobalt	kt	1.5	1.8	(17)
	Gold	koz	17	21	(19)
	Silver	koz	326	406	(20)
	Platinum	koz	36	50	(28)
	Palladium	koz	64	101	(37)
	Rhodium	koz	3	3	-

 

 

 

Production from own sources - Ferroalloys assets¹

			H1 2017	H1 2016	Change %
Ferrochrome6		kt	836	762	10
PGM7	Platinum	koz	29	31	(6)
	Palladium	koz	18	19	(5)
	Rhodium	koz	5	5	-
	Gold	koz	-	1	(100)
	4E	koz	52	56	(7)
Vanadium Pentoxide		mlb	9.5	10.1	(6)

 

 

Total production - Custom metallurgical assets¹

			H1 2017	H1 2016	Change %
Copper (Altonorte, Pasar, Horne, CCR)
	Copper metal	kt	259.5	241.6	7
	Copper anode	kt	264.3	265.1	-
Zinc (Portovesme, San Juan de Nieva, Nordenham, Northfleet)
	Zinc metal	kt	395.2	394.9	-
	Lead metal	kt	99.8	110.3	(10)
	Silver	koz	7,465	7,305	2
Ferroalloys
	Ferromanganese	kt	72	73	(1)
	Silicon Manganese	kt	26	44	(41)

 

1  Controlled industrial assets and joint ventures only. Production is on a 100% basis, except as stated.

2  Copper metal includes copper contained in copper concentrates and blister.

3  Cobalt contained in concentrates and hydroxides.

4  The Group's pro-rata share of Collahuasi production (44%).

5  The Group's pro-rata share of Antamina production (33.75%).

6  The Group's attributable 79.5% share of the Glencore-Merafe Chrome Venture.

7  Consolidated 50% of Mototolo.

 

 

Selected average commodity prices

	H1 2017	H1 2016	Change %
S&P GSCI Industrial Metals Index	321	257	25
LME (cash) copper price ($/t)	5,755	4,707	22
LME (cash) zinc price ($/t)	2,687	1,801	49
LME (cash) lead price ($/t)	2,218	1,729	28
LME (cash) nickel price ($/t)	9,750	8,669	12
Gold price ($/oz)	1,239	1,220	2
Silver price ($/oz)	17	16	6
Metal Bulletin cobalt price 99.3% ($/lb)	23	11	109
Metal Bulletin ferrochrome 6-8% C basis 60% Cr, max 1.5% Si (¢/lb)	133	82	62
Iron ore (Platts 62% CFR North China) price ($/DMT)	74	52	42

 

 

OPERATING HIGHLIGHTS

 

Copper assets

Own sourced copper production of 642,900 tonnes was 60,100 tonnes (9%) down on H1 2016, reflecting a transition to mining a greater portion of copper/zinc ores at Antamina, temporary lower copper grades at Antapaccay, the effects of wet weather at Mutanda, resulting in reduced ore throughput, and lower production / pit stability issues at Alumbrera as it nears end of life.

African copper

Mutanda's own sourced copper production of 96,500 tonnes was 12,400 tonnes (11%) down on H1 2016, reflecting reduced throughput, following unusually severe wet weather earlier in 2017. H1 cobalt production of 11,200 tonnes was 300 tonnes (3%) higher than H1 2016, reflecting upgrades to the plant completed during 2016.

Mopani's own sourced production of 15,000 tonnes was 6,300 tonnes (30%) down on H1 2016, reflecting a 45 day smelter shutdown in May/June. Mopani continues to produce at reduced rates while the new shaft projects are completed.

Collahuasi

Glencore's share of copper production of 108,600 tonnes was in line with H1 2016.

Antamina

The mine is currently accessing a higher portion of copper/zinc ores and less copper only ores. As such, Glencore's share of copper production at 70,300 tonnes was 9% down on H1 2016, however increased zinc production of 59,000 tonnes was 171% higher.

Other South America

Copper production of 160,800 tonnes was 24,600 tonnes (13%) down on H1 2016, reflecting lower grades / pit wall stability issues at Alumbrera as it approaches end of life, and expected transition to lower copper grades at Antapaccay. Gold production of 163,000 ounces was 8,000 ounces (5%) down, mainly relating to Alumbrera, partly offset by improved gold grades at Antapaccay.

Australia

Own sourced production of 116,400 tonnes was 8,200 tonnes (7%) down on H1 2016, mainly reflecting the sale of a 30% economic interest in Ernest Henry in Q4 2016.

Custom metallurgical assets

Copper cathode production of 259,500 tonnes was 17,900 tonnes (7%) up on H1 2016, reflecting a more stable performance from Pasar, which was ramping up during the base period, post its smelter upgrade and expansion. Copper anode production of 264,300 tonnes was in line with H1 2016, as improved production at Pasar was offset by lower feed grades and timing of planned maintenance shutdowns at Altonorte and Horne.

Zinc assets

Own sourced zinc production of 570,800 tonnes was 64,300 tonnes (13%) higher than H1 2016, of which 37,000 tonnes related to Antamina as noted above, with the balance mainly due to stronger operating performances at Kazzinc, Kidd, Rosh Pinah and Bolivia.

H1 2017 zinc production included 69,400 tonnes from the African assets which are currently in the process of being sold to Trevali Mining (expected to complete within Q3 2017).

Kazzinc

Own-sourced zinc production of 102,200 tonnes was 13,000 tonnes (15%) higher than the comparable period, reflecting the processing of own sourced stockpiled material. Total zinc production, including third party feeds, was 152,500 tonnes, in line with H1 2016.

Own-sourced lead production of 29,000 tonnes was 2,900 tonnes (9%) lower than the comparable period, reflecting short-term mining changes at the Zhairem mine. Total lead production, including third party feed, of 77,300 tonnes was 1,400 tonnes (2%) higher than H1 2016.

Own-sourced copper production of 27,900 tonnes was 2,800 tonnes (11%) higher than the comparable period, reflecting higher head grades. Total copper production, including third party feed, of 34,100 tonnes was in line with H1 2016.

Own-sourced gold production of 306,000 ounces was 63,000 ounces higher than the comparable period, reflecting higher gold head grades at Vasilkovsky and improved recoveries.

Australia

Zinc production of 217,800 tonnes was 13,900 tonnes (6%) lower than H1 2016 and lead production of 78,900 tonnes was 9,500 tonnes (11%) down, attributable to operational mine changes.

North America

Zinc production of 71,200 tonnes was 12,900 tonnes (22%) higher than H1 2016, mainly reflecting higher grades at Kidd. Copper production of 23,700 tonnes was down by 400 tonnes (2%), mainly reflecting lower copper grades from Matagami.

Other Zinc

The South American assets produced 51,200 tonnes of zinc and 28,900 tonnes of lead, up 4% and 33%, respectively, on H1 2016. The increase in lead production mainly relates to improved head grades at Aguilar.

The African assets, pending sale to Trevali Mining, produced 69,400 tonnes of zinc and 2,400 tonnes of lead. The significant increase in zinc production (up 13,300 tonnes or 24%) reflects stabilised operating conditions, particularly in Namibia.

European custom metallurgical assets

Zinc production of 395,200 tonnes was in line with the comparable period. Lead production of 99,800 tonnes was 10,500 tonnes (10%) lower than the comparable period, reflecting a change in the feed mix at the European lead operations.

 

Nickel assets

Own sourced nickel production of 51,200 tonnes was 5,900 tonnes (10%) down on H1 2016, reflecting scheduled maintenance at Murrin and to a lesser extent, INO, partly offset by the stabilising and improving performance at Koniambo.

Integrated Nickel Operations ("INO")

Own sourced nickel production of 29,700 tonnes was 4,100 tonnes (12%) down on H1 2016, reflecting scheduled plant maintenance and the contribution change of own and third-party concentrates in the metallurgical mix. On a total basis, including third party feed, production was down 2,400 tonnes (5%).

Own sourced copper production of 22,700 tonnes was 5,900 tonnes (21%) down on H1 2016, reflecting lower grades at the Sudbury mines.

Murrin Murrin

Own sourced nickel production of 13,500 tonnes was 4,200 tonnes (24%) below H1 2016, principally relating to the statutory maintenance shut in March/April and other required maintenance works.

Koniambo

Nickel production of 8,000 tonnes was 2,400 tonnes (43%) higher than H1 2016, as plant operations continue to improve.

 

Ferroalloys assets

Ferrochrome

Attributable ferrochrome production of 836,000 tonnes was 74,000 tonnes (10%) higher than H1 2016, reflecting more furnace production time, period over period, and strong furnace operational performances.

Platinum Group Metals ("PGM")

Glencore's share of Mototolo production was 52,000 ounces (4E), down 4,000 ounces (7%) on H1 2016, reflecting lower head grades.

Vanadium

Production of 9.5 million pounds was 0.6 million pounds (6%) down on H1 2016, reflecting additional maintenance required and the impacts of network power failures.

Manganese

Production of 98,000 tonnes was 19,000 tonnes (16%) below H1 2016, reflecting a furnace lining replacement at the plant in France.