Glencore reports significant drop in ferrochrome production amid smelter suspensions

Glencore’s ferrochrome production fell by 51% to 436 kt year-to-date to September 31 after operations at its Boshoek and Wonderkop smelters were suspended in May and June 2025 respectively, the London and JSE listed group said.

This was according to a report by the global natural resources group on Wednesday that showed strong overall production of its key commodities during the third quarter to end September 2025, particularly in copper and coal.

The lifting of the suspension of operations at the Boshoek and Wonderkop smelters depended on a sustained recovery in ferrochrome conversion margins. Operations at the Lion smelter were suspended for scheduled annual maintenance and planned furnace rebuilds, Glencore’s CEO Gary Nagle said.

Meanwhile, the group copper production volumes increased 36% quarter-on-quarter after stronger performance at Kamoto Copper Mine (KCC) (66%), Mutanda (60%), Antamina (52%) and Antapaccay (66%). Zinc volumes tracked up 10%, while steelmaking and energy coal volumes were on track to reach the middle and upper ends of their respective earlier annual guidance ranges.

The share price notched up 4.03% to R84.33 on the JSE Wednesday afternoon.

“Underpinned by a strong third quarter production performance, particularly in copper and coal, full-year 2025 production guidance for our key commodities has been maintained, with ranges tightened to reflect just one quarter remaining,” Nagle said.

Basis Marketing’s adjusted earnings before interest and tax were expected to be around the mid-point of the recently upgraded $2.3-$3.5 billion a year long-term guidance range, he added.

In terms of production from its own sources, steelmaking coal production year-to-date was up 123% to 247mt. Year-to-date copper production was lower by 17% to 583.5kt. Gold production was lower by 17% to 448koz.

The lower year-to-date copper production was mainly due to lower head grades and recoveries associated with planned mine sequencing and the resultant ore fed to the plants, contributing to the reductions at Collahuasi (59 000 tons), Antamina (23 400 tons), Antapaccay (15 200 tons) and KCC (16 800 tons).

Own sourced copper production in the third quarter however was 36% higher than the second quarter, mainly reflecting higher grades at KCC (21 700 tons), Antapaccay (16 800 tons) and Antamina (11 800 tons), as planned mine sequencing advanced.

Eight percent higher own sourced cobalt production of 28 500 tons reflected higher cobalt grades and volumes at Mutanda. Higher zinc production mainly reflected higher zinc grades at Antamina (58,700 tons) and higher McArthur River production (16 000 tons).

Steelmaking coal production of 24.7 million tons mainly comprises EVR (acquired in July 2024), which produced 19.4 million tons year-to-date, versus 5.7 million tons in the 2024 period. Australian steelmaking coal production of 5.3 million tons was broadly in line with the previous comparable period.

Energy coal production was in line with the comparable 2024 period, reflecting stronger Australian volumes offsetting the voluntary Cerrejón production cuts announced in March this year.

Nagle said the Democratic Republic of Congo recently lifted its cobalt export ban, introducing total export quotas of 87 000 tons of contained cobalt per year for 2026, and 2027, and 18 125 tons for the remainder of 2025. In addition, the government retained a 9 600 tons per-year strategic quota.

Glencore intended to export cobalt according to its allocation in 2025-2027.

“Given that the business has sufficient inventory to fully utilise the allocated quotas, copper production in the DRC will be prioritised over cobalt, where it makes sense. This strategy is expected to continue while the quotas are in effect,” he said.

The sale of the Pasar copper smelter and refinery in the Philippines completed in September 2025. The Mount Isa copper mine ceased operations in July 2025, with future copper smelting and refining now fully relying on third-party feedstocks.

Own sourced nickel production of 52 400 tons was 9% lower than the comparable 2024 period, reflecting reductions at both INO and Murrin Murrin.

BUSINESS REPORT