Glencore has maintained its 2024 production guidance for most metals while increasing its coal output forecast following the acquisition of Teck’s steelmaking coal unit. The company will announce its decision on whether to separate its coal assets during its half-year financial results next week.
CEO Gary Nagle stated that Glencore is consulting with shareholders to gauge their opinions on a potential demerger of its coal and carbon steel materials business. The company has completed the acquisition of the majority of Teck’s coal business, which is expected to boost its steelmaking coal production from 7-9 million tons to 19-21 million tons.
Despite some investors advocating for Glencore to retain its coal operations, concerns have been raised about the environmental implications of spinning off coal assets, which could lead to less rigorous oversight and worse climate outcomes. Analysts suggest that a demerger is unlikely, and the acquisition of Teck’s assets could be beneficial for Glencore’s future.
Glencore reported lower production figures for copper, nickel, zinc, coal, and cobalt in the first half of the year compared to the same period last year, while keeping its overall copper production guidance unchanged at 950,000 to 1.01 million tons.