Glencore has reported its coal production results for 1Q17.
The mining giant reported a total coal production of 30.9 million t – 1.2 million t (4%) higher than 1Q16, reflecting geological challenges at Oaky Creek in the base period and planned ramp-ups in the Australian thermal portfolio. However, production was 2.1 million t (6%) down on 4Q16, due to adverse weather conditions in Australia and South Africa.
Glencore’s Australian metallurgical coal production totalled 1.7 million t, which was 0.5 million t (42%) higher than 1Q16, reflecting certain geological challenges at Oaky Creek in the base period. Quarterly production was in line with 3Q16 and 4Q16.
In terms of Australian thermal and semi-soft coal, 15.4 million t was produced, which was 1.1 million t (8%) higher than the comparable period. The company reported this was a reflection of planned ramp ups at Rolleston and Mangoola, and Glencore’s increased ownership of the Newlands and Collinsville mines. Production was 1.4 million t (8%) below 4Q16 as a result of adverse weather in New South Wales and dragline maintenance at Rolleston in Queensland. Cyclone Debbie had minimal impact on mine production across the portfolio, with stoppages limited to a few days, however railings to port have been disrupted following the cyclone.
South African thermal production finished at 6.8 million t, which was 0.5 million t (7%) lower than the comparable period, reflecting expected reductions from the Hlagisa and Springlake mines as they reach end of life. Adverse weather affecting production in the quarter was countered by drawdowns from stockpiles.
At Prodeco, 4.2 million t was produced, which was in line with the comparable period.
Glencore’s share of production at Cerrejón was 2.8 million t. This was 0.2 million t (8%) higher than the comparable period, reflecting the easing of dust restrictions.
Read the article online at: https://www.globalminingreview.com/mining/05052017/glencore-coal-production-up-compared-to-same-quarter-last-year/