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Miner and trader Glencore (OTC: GLNCY) said on Friday that it expects its trading division’s earnings before interest and taxes (EBIT) to exceed its long-term projection of $2.2 billion to $3.2 billion in 2021, but that it will stick to its output guidance.
High coal and other commodity prices, despite decreasing supply in some cases, are aiding miners, while unpredictable prices have provided trading possibilities.
Glencore’s coal production fell by 9% in the first nine months of the year, owing to the suspension of its Prodeco mines in Colombia and decreased domestic production in South Africa.
Thanks to an uptick in energy market demand and pricing, Glencore has recovered from market-driven production cuts in its Australian coal holdings last year, according to CEO Gary Nagle.
Due to a supply shortage, coal prices have risen to all-time highs this year. South African mines cranked back up following a COVID-19 lockout, resulting in a 65 percent increase in ferrochrome production to 1,071,000 tonnes.
Due to planned maintenance at its Australian mine Murrin and operating challenges at its Koniambo mine in New Caledonia, Glencore’s own-sourced nickel production was down 13% year to date to 71,100 tonnes. Because of poorer grades, copper production declined 4% to 895,500 tonnes.
Glencore’s African mines increased cobalt production by 11% to 20,900 tonnes of cobalt in hydroxide, boosted by a 2,100-tonne deposit from the Mutanda mine in the Democratic Republic of Congo, which is being restarted.
Story by : Norvisi Mawunyegah