Glencore cuts 2015 capex ceiling to $6bn

Glencore has cut its maximum industrial capex for 2015 to $6 billion, compared with the $6.5-6.8 billion announced in February.

Glencore has cut its maximum industrial capex for 2015 to $6 billion, compared with the $6.5-6.8 billion announced in February.

The miner’s industrial capex was $3 billion in the first six months of the year, the company said in its production report for the period.

In production guidance included in the report, Glencore set a full-year 2015 ferro-chrome production target of 1.45-1.5 million tonnes, up from 1.3 million tonnes in 2014.

Glencore’s ferro-chrome production increased 16% year-on-year in the first half of 2015 on greater output from its Lion 2 smelter.

Full-year 2015 zinc production is expected to increase to 1.52-1.57 million tonnes, up from 1.39 million tonnes in 2014.

Copper production guidance has been set at 1.5-1.55 million tonnes in 2015, roughly flat on the 1.546 million tonnes in 2014. Copper production fell 3% in the first half of 2015 as a result of lower-grade material and maintenance.

Lead production is expected to increase to 335,000-360,000 tonnes in 2015. In 2014, about 308,000 tonnes of lead was produced.

Nickel production guidance has been set at 98,000-108,000 tonnes for 2015. The company produced about 101,000 tonnes of nickel in 2014.

The table below shows the midpoint of each production guidance range against full-year production in 2014.

Glencore’s production guidance for full-year 2015, as of August 2015 

  2014                 production
Tonnes (000)      
High Low Midpoint % change
Copper 1,546 1,500 1,550 1,525 -1.36%
Zinc 1,387 1,520 1,570 1,545 11.39%
Lead 308 335 360 347.5 12.83%
Nickel 101 98 108 103 1.98%
Ferro-chrome 1,295 1,450 1,500 1,475 13.90%

Charlotte Radford 
charlotte.radford@metalbulletin.com
Twitter: @CRadford_MB 

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