Mining and commodity giant Glencore warned on Wednesday that it will report a $ 350 million lost profit in its first half earnings next week due to its copper business in Africa failing to meet its expected production indicators, as well as due to the continuing decline in cobalt prices.
The Swiss company said setbacks at its Congolese and Zambian mines led to a 5 percent drop in copper production to 663,000 tonnes in half a year.
The production decline was also impacted by the recent closure of two “uneconomic” mines owned by its Zambian company Mopani Copper Mines and a landslide at a copper-cobalt mine in Congo, operated by its subsidiary Katanga Mining, which killed more than 40 illegal miners. p>
As a result, Glencore said it is likely to cut its copper production target this year.
“Our African copper assets retain significant potential and will play a key role in the transition to a low carbon economy,” said Ivan Glazenberg, CEO of Glencore. “We have developed detailed work plans and I am looking forward to discussing these plans together with our financial performance on August 7th.
The company's production of cobalt, a key component in electric batteries, rose 28 percent, but falling prices offset the results.
After a fourfold increase in two years, cobalt is now selling at its lowest prices since 2016, and this negative trend has been reflected in Glencore's profits.
