Glencore to reopen Alumbrera as targets 1.6mt/y in copper output

GLENCORE annnounced today the restart of its Alumbrera mine in Argentina by late 2026 as the miner sought to give fresh momentum to its struggling copper division.Amid concerns the company may fall short of targeted copper production this year, the reopening of the open pit mine would be a prelude to developing the neighbouring MARA project and forms part of long term plans to produce 1.6 million tons of copper by 2035.“We have a clear pathway for our base copper business to exceed 1 million tons of annual production by the end of 2028, with a target to produce approximately 1.6Mt tons by 2035,” said Gary Nagle, CEO of Glencore at a capital markets presentation. At that level of production, Glencore one of the largest copper producers in the world, he added.Alumbrera, which was put on care and maintenance in 2018, is forecast to produce 75,000 tons of copper and about 317,000 ounces of gold as well as 1,000 tons of molybdenum, a steel-making ingredient, during four years of operations, said Glencore.Alumbrera’s restart is also “a natural enabler” for Minera Agua Rica – Alumbrera (MARA), the group said. It reduces ramp-up risk for the concentrator and downstream logistics, maintains and retrains the workforce ahead of MARA first ore and keeps critical infrastructure in operation, ultimately expected to be shared with the MARA project, thereby generating operational synergies.In October, Glencore trimmed its full year output of the red metal to 850,000 to 875,000 tons compared to previous guidance of up to 890,000 tons despite a recovery of grades at its African copper operations (KCC and Mutanda), and its Peru mines Antapaccay and Antamina which took third quarter output up 36% to 583,000 tons.But there is scepticism about its longer terms targets for copper output of 930,000 in 2026/2027. In a November 24 report, Goldman Sachs analyst Matt Greene anticipated copper output of 850,000 to 900,000 tons instead.The underperformance has weighed heavily on Glencore’s shares this year, although the slump in the thermal coal price is an important factor in the company’s valuation. “We see Glencore as being at a strategic crossroads. Our discussions with investors suggest that to outperform peers, it should revisit/rationalise its portfolio,” said Greene.Commenting today, Glencore said the group had streamlined its management team, and focused on improving operational performance.The post Glencore to reopen Alumbrera as targets 1.6mt/y in copper output appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com