Glencore Sees Higher Zinc and Oil Production by 2022, Copper to Decline

By Adriano Marchese

Glencore PLC (GLEN.LN) said Tuesday that it expects zinc and net oil equivalent production to be higher by 2022 while copper production is expected to modestly decline.

The Anglo-Swiss commodity trading and mining company said net oil equivalent production is set to reach a range of between 12.3 million barrels and 13.1 million barrels in 2022. This compares with a range of between 5.3 million and 5.7 million barrels for 2019.

Zinc production is also expected to rise in the period, with production peaking at around 1.4 million metric tons in 2021, and then falling to around 1.2 million tons in 2022, the company said. Production in 2019 is expected to be around 1.1 million tons.

For 2019, coal guidance was reduced by 5 million tons to between 138 million and 142 million tons, and the company expects largely flat production in 2022, offering a range of between 135 million and 145 million tons.

The company expects a modest copper-production decline over the outlook period, primarily reflecting the transition of Mutanda facility in Congo to care and maintenance in the fourth quarter. For 2019, Glencore guides for a production of around 1.4 million tons. This is expected to fall to around 1.3 million to 1.4 million tons in 2022.

Shares at 1353 GMT were down 3.5% at 236.25 pence.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

December 03, 2019 09:24 ET (14:24 GMT)

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