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| Glencore copper output |
Production Challenges at Collahuasi Affect Global Copper Supply
Glencore’s copper output fell 40% since 2018 due to production issues at Chile’s Collahuasi mine. Despite this, the company expects to meet its 2025 production targets. Meanwhile, third-quarter output rose 36% thanks to higher ore grades in African and Peruvian operations. However, annual output remains near the lower end of forecasts, pressuring Glencore to align with peers’ growth plans.
Cobalt Quotas and Strategic Stockpiling Manage Supply Constraints
Glencore prioritizes copper production while managing cobalt exports from the Democratic Republic of Congo. The DRC introduced a quota system totaling 87,000 tonnes of contained cobalt for 2026–2027. As a result, Glencore relies on stockpiles to meet commercial targets while navigating supply constraints impacting electric vehicle and electronics industries.
Renewable Energy Projects on Hold Amid Nickel Price Slump
Glencore suspended its A$35 million renewable energy hub at Murrin Murrin due to rising costs and weak nickel prices. Consequently, Murrin Murrin and IGO’s Nova remain Australia’s last operating nickel mines. This decision reflects broader challenges in maintaining profitability amid oversupply from Indonesia and volatile commodity markets.
ScrapInsight Commentary
Glencore’s declining copper output and strategic cobalt management underscore persistent operational and regulatory risks. Investors should monitor Collahuasi performance, DRC quotas, and nickel market volatility for supply chain impacts.
