Glencore Says Africa Copper Turnround Plans on Track
Neil Hume
Cape Town
Financial Times
FEBRUARY 4 2020
Glencore said the turnround plan for its African copper business was on track, as its appointed the former chief executive of a Chinese mining company to its board.
The Swiss-based miner and commodity trader has been grappling with a string of issues in the DRC and Zambia, which contributed to a drop in profits last year.
These have included a smelter refurbishment in Zambia and the decision to mothball its Mutanda mine in the DRC.
In a update released on Tuesday, Glencore said production at Katanga — one of its most important growth assets — increased 11 per cent in three months to the end of December to 65,4000 tonnes. That performance helped boost output of cobalt, which is produced alongside copper as a byproduct.
“Katanga’s copper production in the fourth quarter of 2019 implies full year production ahead of our estimates at 260,000 tonnes and should help the company to achieve its guidance of 300,000 production by 2022,” said analysts at Citi
Shares in Glencore rose more than 4 per cent to 231p in morning trading.
“African Copper production continues to rebound with Katanga having a strong quarter,” said Tyler Broda, analyst at RBC Capital Markets.
Alongside the production update, Glencore named Kalidas Madhavpeddi, the former chief executive of China Molybdenum International, as a non-executive director.
The appointment of Mr Madhavpeddi, who left China Moly in 2018 after a decade at the helm, adds more mining experience to Glencore’s board.
China Moly is the majority owner of a Tenke, a huge copper-cobalt mine in the DRC.
“His experience includes substantial involvement in operations and business dealings with both Phelps Dodge and China Moly in the Democratic Republic of Congo. We look forward to benefiting from his experience and insights,” said Glencore chairman Tony Hayward.
The other miners on Glencore’s board are former Xstrata executive Peter Coates and Patrice Merrin.
Cape Town
Financial Times
FEBRUARY 4 2020
Glencore said the turnround plan for its African copper business was on track, as its appointed the former chief executive of a Chinese mining company to its board.
The Swiss-based miner and commodity trader has been grappling with a string of issues in the DRC and Zambia, which contributed to a drop in profits last year.
These have included a smelter refurbishment in Zambia and the decision to mothball its Mutanda mine in the DRC.
In a update released on Tuesday, Glencore said production at Katanga — one of its most important growth assets — increased 11 per cent in three months to the end of December to 65,4000 tonnes. That performance helped boost output of cobalt, which is produced alongside copper as a byproduct.
“Katanga’s copper production in the fourth quarter of 2019 implies full year production ahead of our estimates at 260,000 tonnes and should help the company to achieve its guidance of 300,000 production by 2022,” said analysts at Citi
Shares in Glencore rose more than 4 per cent to 231p in morning trading.
“African Copper production continues to rebound with Katanga having a strong quarter,” said Tyler Broda, analyst at RBC Capital Markets.
Alongside the production update, Glencore named Kalidas Madhavpeddi, the former chief executive of China Molybdenum International, as a non-executive director.
The appointment of Mr Madhavpeddi, who left China Moly in 2018 after a decade at the helm, adds more mining experience to Glencore’s board.
China Moly is the majority owner of a Tenke, a huge copper-cobalt mine in the DRC.
“His experience includes substantial involvement in operations and business dealings with both Phelps Dodge and China Moly in the Democratic Republic of Congo. We look forward to benefiting from his experience and insights,” said Glencore chairman Tony Hayward.
The other miners on Glencore’s board are former Xstrata executive Peter Coates and Patrice Merrin.
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