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Released August 15, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Stronger commodity prices continued to benefit mining giant Glencore plc (Baar, Switzerland) in the first half of the year, with executives optimistic that the trend will continue through the end of 2017. Unlike the oil industry, where a bump in prices earlier in the year ultimately disappointed, the Metals & Minerals Industry has been enjoying a recovery that has boosted the project outlook for Glencore and its peers. Industrial Info is tracking more than $12.7 billion in active projects involving Glencore.
Net income for the first half of 2017 stood at $2.45 billion, compared with a $369 million loss in the same period last year. Capital expenditures stood at $1.68 billion, up from $1.57 billion in the first half of 2016. Ivan Glasenberg, the chief executive officer of Glencore, said in a recent earnings-related press release that the industry is seeing its "best global economic growth momentum seen in recent years."
Rising demand from the Asia-Pacific has been among the biggest drivers of growth, and is a more dependable growth factor than U.S. President Donald Trump's call for stronger infrastructure spending, which may or may not pass Congress. Glencore's Kazakhstan-based subsidiary, Kazzinc LLP, has three projects under construction in Kazakhstan: a $100 million zinc and polymetallic mine and a $100 million zinc and lead mine in Ust-Kamenogorsk, and a $100 million expansion at a polymetallic mine in Kyzylzhar. The Ust-Kamenogorsk projects each are expected to produce 350,000 tons per year, while the Kyzylzhar expansion is expected to add 5 million tons per year. For more information, see Industrial Info's project reports on the zinc/polymetallic mine and zinc/lead mine in Ust-Kamenogorsk, and the Kyzylzhar expansion.
Cobalt is among the biggest gainers, with prices more than doubling from the first half of 2016. Glencore is the top global producer of the mineral, which is a key element for smartphones and the lithium-ion batteries that power electric vehicles. The company has proposed a $20 million expansion of a copper and cobalt mine in Kolwezi, Democratic Republic of Congo, which would boost capacity by 250,000 tons to 350,000 tons per year. For more information, see Industrial Info's project report.
Electric cars are among the changing trends in the energy and automotive industries are among the advantages Glencore executives expect to see in the long term. "The potential large-scale roll out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling commodities, including copper, cobalt, zinc and nickel," Glasenberg said in the press release.
Lower production costs also have benefited Glencore in its production of minerals such as copper. In Zambia, the company has a pair of copper mine expansions underway: the $327 million expansion of a copper mine in Mufulira and the $232 million expansion of a mine in Kitwe. The projects are expected to expand the mines' capacities from 1.5 million tons per year to 2 million tons in Mufulira and 2.5 million tons in Kitwe. For more information, see Industrial Info's reports on the Mufulira and Kitwe projects.
Glencore is widely believed to be eyeing Rio Tinto plc's (NYSE:RIO) (London, England) Pacific Aluminum business, which the rival has been trying to sell off for several years. Weak market conditions had made it unappealing to potential buyers, but with three-month aluminum futures hitting a three-year high on the London Metal Exchange last week, interest has been revived, according to The Australian. The Rio Tinto subsidiary, which owns smelters in Australia and New Zealand, is at work on a $15.78 million carbon bake furnace rebuild at an aluminum smelter in George Town, Tasmania. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Net income for the first half of 2017 stood at $2.45 billion, compared with a $369 million loss in the same period last year. Capital expenditures stood at $1.68 billion, up from $1.57 billion in the first half of 2016. Ivan Glasenberg, the chief executive officer of Glencore, said in a recent earnings-related press release that the industry is seeing its "best global economic growth momentum seen in recent years."
Rising demand from the Asia-Pacific has been among the biggest drivers of growth, and is a more dependable growth factor than U.S. President Donald Trump's call for stronger infrastructure spending, which may or may not pass Congress. Glencore's Kazakhstan-based subsidiary, Kazzinc LLP, has three projects under construction in Kazakhstan: a $100 million zinc and polymetallic mine and a $100 million zinc and lead mine in Ust-Kamenogorsk, and a $100 million expansion at a polymetallic mine in Kyzylzhar. The Ust-Kamenogorsk projects each are expected to produce 350,000 tons per year, while the Kyzylzhar expansion is expected to add 5 million tons per year. For more information, see Industrial Info's project reports on the zinc/polymetallic mine and zinc/lead mine in Ust-Kamenogorsk, and the Kyzylzhar expansion.
Cobalt is among the biggest gainers, with prices more than doubling from the first half of 2016. Glencore is the top global producer of the mineral, which is a key element for smartphones and the lithium-ion batteries that power electric vehicles. The company has proposed a $20 million expansion of a copper and cobalt mine in Kolwezi, Democratic Republic of Congo, which would boost capacity by 250,000 tons to 350,000 tons per year. For more information, see Industrial Info's project report.
Electric cars are among the changing trends in the energy and automotive industries are among the advantages Glencore executives expect to see in the long term. "The potential large-scale roll out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling commodities, including copper, cobalt, zinc and nickel," Glasenberg said in the press release.
Lower production costs also have benefited Glencore in its production of minerals such as copper. In Zambia, the company has a pair of copper mine expansions underway: the $327 million expansion of a copper mine in Mufulira and the $232 million expansion of a mine in Kitwe. The projects are expected to expand the mines' capacities from 1.5 million tons per year to 2 million tons in Mufulira and 2.5 million tons in Kitwe. For more information, see Industrial Info's reports on the Mufulira and Kitwe projects.
Glencore is widely believed to be eyeing Rio Tinto plc's (NYSE:RIO) (London, England) Pacific Aluminum business, which the rival has been trying to sell off for several years. Weak market conditions had made it unappealing to potential buyers, but with three-month aluminum futures hitting a three-year high on the London Metal Exchange last week, interest has been revived, according to The Australian. The Rio Tinto subsidiary, which owns smelters in Australia and New Zealand, is at work on a $15.78 million carbon bake furnace rebuild at an aluminum smelter in George Town, Tasmania. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
