By Jaime Llinares Taboada

 

Glencore PLC on Friday cut its 2021 production guidance for nickel, zinc and coal. Here's what the natural resources company had to say:

 

On copper and cobalt:

 

"Own-sourced copper and cobalt production of 598,000 [metric tons] and 14,800 tons, respectively, was modestly higher than 1H 2020."

 

On zinc:

 

"Own-sourced zinc production of 581,800 tons was 31,700 tons (6%) higher than 1H 2020, mainly relating to recovery from Covid-related suspensions in 2Q 2020, particularly in Peru."

 

On nickel:

 

"Own-sourced nickel production of 47,700 tons was 7,500 tons (14%) below 1H 2020 due to planned major maintenance at Murrin and various operational issues at Koniambo."

 

"Nickel production was constrained by various operating issues at Koniambo, with a restart of its second production line currently expected in August."

 

On gold and silver:

 

"Own-sourced gold and silver production were, respectively, 3% and 13% ahead of 1H 2020"

 

On ferrochrome:

 

"Attributable ferrochrome production of 773,000 tons was 307,000 tons (66%) higher than 1H 2020, reflecting that mining and smelting operations were suspended for much of 2Q 2020 due to the South African national lockdown."

 

On coal:

 

"Coal production of 48.7 million tons was 9.4 million tons (16%) lower than 1H 2020, reflecting a full period of Prodeco care and maintenance (3.8 million tons), various movements in the Australian portfolio, mainly reflecting the continued market-driven supply reductions initiated in 2H 2020 (5.0 million tons) and reduced export rail capacity in South Africa (1.4 million tons), partly offset by the recovery at Cerrejon from its Covid-related restrictions in the base period."

 

"Prodeco's care and maintenance and market-driven Australian supply reductions since 2H 2020 are mainly responsible for a 16% period-on-period decline in coal production."

 

On oil:

 

"Entitlement interest oil production of 2.6 million barrels of oil equivalent (boe) was broadly in line with 1H 2020, reflecting the offsetting effects of the Chad oil fields placed on care and maintenance in April 2020 and the gas phase of the Equatorial Guinea project commencing in February 2021."

 

On 2021 production guidance changes:

 

"Changes to guidance mainly reflect: lower 2H for zinc, due to a lengthier expected ramp-up at the recently-commissioned Zhairem mine in Kazakhstan; extended maintenance at the Koniambo nickel plant, delaying a return to a two-line processing operation; and reduced coal production volumes, on account of export rail constraints and weaker domestic demand in South Africa and a slower recovery from the Australian market-driven supply reductions initiated in 2H 2020."

 

On the marketing business:

 

"Our marketing business has again performed well, with constructive market conditions allowing us to raise our full-year 2021 EBIT expectations to the top end of our $2.2 billion-$3.2 billion p.a. guidance range."

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

July 30, 2021 03:05 ET (07:05 GMT)

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