DRC Mine Closure Badly Impacted Glencore’s 2020 Output

Even otherwise, the mine was set to go into care and maintenance by end-2020.

SEATTLE (Scrap Monster): The annual output of copper and cobalt in 2020 by Glencore was badly hit by the premature closure of Mutanda mine in the Democratic Republic of Congo (DRC). The company reported 8% decline in copper production to 1.26 million during the previous year. Also, the cobalt production witnessed significant decline by 41% to 27,400 tonnes.

Glencore’s Mutanda mine had announced suspension of operations prematurely in end-November, citing shortage of sulphuric acid. Even otherwise, the mine was set to go into care and maintenance by end-2020.

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Excluding the impact of the mine closure, the copper output during the year was very much in line with the previous year. Also, cobalt production was up by approximately 6,200 tonnes, mainly on account of ramp-up of its Katanga mine.

Majority of the larger operations of the company were not affected by closures triggered by Covid-19 pandemic. However, the output was badly impacted at its ferrochrome operations in South Africa, oil fields in Chad and a nickel mine in New Caledonia. The strike at its , Cerrejon coal mine and the closure of its Prodeco mine in Colombia, coupled with lower output from Australia led to 24% dip in coal production during the year.

The company maintained its production targets for 2021.