Glencore raises coal output 10% in H1

Glencore raised its coal production 10% in the first half to a total of 68.2m tonnes, due in part to additional Australian supply, the Anglo-Swiss trading and mining firm said on Wednesday.

The increase reflected contributions from the company’s acquisition of shares in the Australian HVO and Hail Creek mines in 2018 as well as a recovery in output at its Colombian Prodeco mine, it said in its first half production report.

Australian thermal coal production for export climbed 5% to 31m tonnes while Colombian production from Prodeco’s two mines rose 33% to 7.3m tonnes.

But output from its share in the Colombian Cerrejon mining complex – owned jointly with Anglo American and BHP Billiton – was down 19% at 4.2m tonnes.

“Higher production at Prodeco, following a period of increased mine development [and] a strong operational performance in South Africa [was] partly offset by lower Cerrejon production to meet air quality requirements,” it said.

This was in reference to hot weather, which caused high levels of dust.

In South Africa, a rise in domestic production – by 72% to 7.4m tonnes – offset a 16% decline in export volumes down to 6.7m tonnes.

Glencore said earlier this year it expected to produce 145m tonnes of coal this year, a 12% rise on last year’s volumes.
Source: Montel