Glencore reduces copper target for next year, aiming at 1.6 million tonnes by 2035

Glencore cut Wednesday its copper production guidance for 2026, but stated that it hopes to reach 1.6 millions metric tons of copper by 2035 with new and restarted mining operations and streamlined processes.

Gary Nagle, CEO of Glencore, said at the first investor day held in London for three years that "we have a path to surpass 1 million tonnes annual production in our base copper business by 2028".

Glencore said that it will also eliminate about 1,000 jobs in its new structure. In July, the company announced its intention to review its industrial assets in order to save $1 billion by the end 2026.

Following Wednesday's announcement, Glencore shares rose to their highest levels since January 24.

Glencore's outlook for overall copper production in 2025, a critical metal for the energy transition, ranged between 850,000 to 875,000 tonnes. It guided to a range on Wednesday with a midpoint at 840,000 tons, down from the previous 930,000, due in part to a lower ore quality and water restrictions at its Chilean mine Collahuasi.

The number of brownfields is expected to increase by 2035, mainly due to large-scale expansions and greenfield development.

Collahuasi, meanwhile, will provide a new concentrator as well as a leaching system for stockpiles that will result in a substantial increase in volume.

Glencore’s largest greenfield copper project is El Pachon, in Argentina. It's a large-scale expansion that the company hopes will support its long-term development.

Copper is essential for power, construction, and the green energy shift. Mining companies are competing aggressively through organic growth and M&A to increase their exposure.

Glencore and Vale's base-metals unit are in talks to form a joint venture that would produce around 900,000.00 tons of copper over a 21-year period.

Since 2006, the two companies have been in talks about a possible merger. They are exploring ways to expand their mining and processing operations and develop their base metals assets.

The final decision should be made in the first half 2027. Reporting by Clara Denina, Pratima Dasai and Tomasz Janowski; editing by Alexander Smith and Tomasz Janowski

(source: Reuters)