Glencore PLC (LSE:GLEN), which was slapped with US$1.5bn of penalties for bribery and corruption earlier this year, has today lowered its guidance for copper production in 2022.
The mining conglomerate reduced its forecast for copper mining by 5%, or 50 kilo-tonnes (kt), “due to the ongoing geotechnical constraints” at its open pit run by subsidiary Katanga Mining in the Democratic Republic of the Congo, including higher levels of acid-consuming ore.
It said the reduced guidance, at base projections of 1,060kt, down from 1,110kt, also reflects lower year-to-date run rate at the Mount Isa Copper mines in Australia largely due to staff shortages related to Covid-19.
Copper production at Glencore’s mines was down 15% in the first half of 2022 at 510.2kt.
The conglomerate said it will also assess the negative impact of flooding in New South Wales on its yearly coal output, following delays in restoring production at its coal mines.
The corporation suffered a fatality at one of its mines in the first half of the year but said its overall injuries were 3% lower than last year.
In May, it agreed to pay US authorities US$1.02bn in net charges relating to bribery and market manipulation investigations as well as facing charges and investigations in multiple jurisdictions.
Glencore chief executive officer Gary Nagle said overall production was "mixed" period-over-period, with five commodities up and five down, "reflecting the Ernest Henry (copper/gold) and Bolivia (zinc) portfolio disposals, and geotechnical and processing challenges at Katanga, offset by improved cobalt, nickel and ferrochrome production levels and the additional contribution from Cerrejon, reflecting its full ownership from early January".
“Our full-year production guidance remains unchanged with the exception of copper, where the ongoing geotechnical constraints relating to Katanga’s open pit and continued management of higher levels of acid-consuming ore, largely account for the reduced guidance of 1,060kt (previously 1,110kt).”