Global commodities giant Glencore saw its coal production rise 3% in 2023 to 113.6 million tonnes (mt), exceeding 2022 levels and nearly reaching 2021 figures. Looking ahead, the company expects stable production in 2024, with potential for further growth through its recent acquisition of Teck’s steelmaking coal business.
Key Takeaways:
- Production increase driven by South African operations and easing external constraints.
- 2024 guidance maintained at 110 mt, excluding potential volumes from Teck deal.
- Australian thermal coal production up 3%, domestic market down 10%.
- Coking coal production declines due to mine closure.
- South African production increases despite rail network limitations.
- Cerrejón mine in Colombia sees significant production jump after overcoming challenges.
- Average thermal-equivalent price realized at $141/t.
- Production costs for thermal coal expected to be lower than 2023 guidance.
Production Breakdown:
- Australian export thermal coal: Increased 3% to 55.2 mt.
- Australian domestic thermal coal: Decreased 10% to 7.0 mt.
- Australian coking coal: Decreased 14% to 7.5 mt.
- Australian semi-soft coking coal: Increased 2% to 4.1 mt.
- South African export thermal coal: Increased 8% to 13.7 mt.
- South African domestic thermal coal: Increased 11% to 4.1 mt.
- Cerrejón mine (Colombia): Increased 12% to 22.0 mt.
Looking Ahead:
- Stable production expected in 2024 with potential for growth from Teck acquisition.
- Lower production costs anticipated for thermal coal due to favorable tax changes.
