Glencore Xstrata Plc. (GLCNF.PK, GLNCY.PK, GLEN.L), formed recently through the merger of Swiss Commodities trader Glencore International Plc. and mining firm Xstrata Plc, Monday reported increased production of copper for the first quarter, boosted by higher output from its mines in Africa.
Copper production, using feed from own sources, climbed 18 percent to 321,000 metric tonnes from 273,200 metric tonnes in the prior year. The company attributed the increase to strong growth from Antapaccay, Katanga, Mount Margaret (Ernest Henry) and Mutanda, as these mines benefited from their expansion plans.
It was on May 2 that Glencore completed the merger with Xstrata, and it now holds all the shares of the miner. The latest production data includes that of Xstrata.
African copper produced 83,600 tonnes of copper in metal and in concentrate from own sources, a 44 percent increase from last year, driven by the expansion projects at Mutanda and Katanga.
Glencore said the two major expansion projects currently underway at Katanga and Mutanda are expected to increase their annual copper cathode production to 270,000 tonnes and 200,000 tonnes, respectively. Both projects are on track for completion in 2013.
Own coal output was up 1 percent at 32.7 million tonnes with a 29 percent increase in Australian coking coal production as a result of improved performance at Oaky Creek, following production issues in the comparative period last year.
Using feed from own sources, zinc output was flat with last year, while lead production increased 10 percent. Nickel and gold production climbed 4 percent and 15 percent, respectively.
Total copper production for the quarter - which includes using feed from own sources and third party sources - increased to 537,300 metric tonnes from 468,000 metric tonnes.
Glencore said quarterly marketing performance overall was broadly in line with expectations. Metals and Minerals delivered solid results despite some price softening while Energy - coal and oil - saw improved profitability. Agricultural Products made a slow start to the year, in an often seasonally weak quarter.
GLEN.L is falling 0.8 percent in early morning trade at 341.40 pence.
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