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Researched by Industrial Info Resources (Sugar Land, Texas)--Following a long period of low commodity prices that often put its bottom line in the red, mining giant Glencore plc (Baar, Switzerland) enjoyed a pricing rebound in 2016 that returned it to positive territory and helped it slash debt. The company boosted its capital-spending outlook, buoyed in part by strong expectations for development in Africa. Industrial Info is tracking $12.9 billion in active projects involving Glencore.
Net income for 2016 was reported to be $1.38 billion, compared with a net loss of $4.96 billion in 2015. In addition to improved commodity prices, executives cited a cost-cutting program launched in September 2015 that raised $6.2 billion, including $3.1 billion from the sale of half of Glencore's agriculture business.
Glencore currently expects 2017's capital expenditures to come in at about $4 billion, partly reflecting the preparations for the Kamoto Whole Ore Leach Mine, which is expected to be commissioned by end 2017; some incremental oil drilling; coal mobile equipment purchases; and concentrator and shaft-sinking work at the Mopani mine. Capital spending for 2016 totaled roughly $3.5 billion, a 41% decrease from 2015. Almost half of 2016's spending was attributed to the copper business.
The $440 million addition at the Kamoto Whole Ore Leach Mine in Democratic Republic of Congo, which is part of an $880 million upgrade at the complex, involves constructing a plant that will recover 300,000 tons of copper oxide per year and reduce the complex's ore requirements 23% until 2023. For more information, including current schedules, specifications and contact information, see Industrial Info's project report.
Industrial Info also is tracking progress at the Mopani Copper Mine in Mufulira, Zambia, including the $327 million shaft deepening and the $232 million shaft expansion projects. Glencore hopes to deepen vertical shafts to more than 2,000 meters to access richer ore, expanding the overall copper-mining operation from 1.5 million to as much as 2.5 million tons per year, for another 25-year mine life. For more information, see Industrial Info's project reports on the shaft deepening and expansion projects.
Glencore also saw a stronger performance in its own-sourced nickel production, which was 20% higher than the previous year, due in part to 2016's processing of material stockpiled during maintenance work the prior year at the Sudbury Nickel Rim South Mine in Ontario, Canada. Own-sourced copper production was 11% higher, also due to improved mill throughput at Sudbury. Glencore has proposed a $500 million addition to the mine, which has been repeatedly pushed back over the past two years amid low commodity prices; the addition, as currently envisioned, would extend operations until 2035 by developing a second deposit. For more information, see Industrial Info's project report.
Executives also said they expect capital expenditures to hover at around $4 billion per year for the next three to five years, noting that the company had reduced net funding and net debt by $14.7 billion and $14.1 billion, respectively, to $32.6 billion and $15.5 billion over the last 18 months. They also said that they do not expect to see any large greenfield expansion projects in that time.
"Since our IPO in 2011 and subsequent acquisition and integration of Xstrata, Glencore has never been so well positioned as it is today," said Ivan Glasenberg, the chief executive officer of Glencore, in a press release. ""As we look forward, increasingly favorable fundamentals provide the potential to create significant, long-term value for Glencore shareholders via our leading portfolio of well-capitalized tier-one assets and resilient marketing business, combined with significant, low-cost copper and zinc growth options and disciplined approach to supply."
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 2016 was reported to be $1.38 billion, compared with a net loss of $4.96 billion in 2015. In addition to improved commodity prices, executives cited a cost-cutting program launched in September 2015 that raised $6.2 billion, including $3.1 billion from the sale of half of Glencore's agriculture business.
Glencore currently expects 2017's capital expenditures to come in at about $4 billion, partly reflecting the preparations for the Kamoto Whole Ore Leach Mine, which is expected to be commissioned by end 2017; some incremental oil drilling; coal mobile equipment purchases; and concentrator and shaft-sinking work at the Mopani mine. Capital spending for 2016 totaled roughly $3.5 billion, a 41% decrease from 2015. Almost half of 2016's spending was attributed to the copper business.
The $440 million addition at the Kamoto Whole Ore Leach Mine in Democratic Republic of Congo, which is part of an $880 million upgrade at the complex, involves constructing a plant that will recover 300,000 tons of copper oxide per year and reduce the complex's ore requirements 23% until 2023. For more information, including current schedules, specifications and contact information, see Industrial Info's project report.
Industrial Info also is tracking progress at the Mopani Copper Mine in Mufulira, Zambia, including the $327 million shaft deepening and the $232 million shaft expansion projects. Glencore hopes to deepen vertical shafts to more than 2,000 meters to access richer ore, expanding the overall copper-mining operation from 1.5 million to as much as 2.5 million tons per year, for another 25-year mine life. For more information, see Industrial Info's project reports on the shaft deepening and expansion projects.
Glencore also saw a stronger performance in its own-sourced nickel production, which was 20% higher than the previous year, due in part to 2016's processing of material stockpiled during maintenance work the prior year at the Sudbury Nickel Rim South Mine in Ontario, Canada. Own-sourced copper production was 11% higher, also due to improved mill throughput at Sudbury. Glencore has proposed a $500 million addition to the mine, which has been repeatedly pushed back over the past two years amid low commodity prices; the addition, as currently envisioned, would extend operations until 2035 by developing a second deposit. For more information, see Industrial Info's project report.
Executives also said they expect capital expenditures to hover at around $4 billion per year for the next three to five years, noting that the company had reduced net funding and net debt by $14.7 billion and $14.1 billion, respectively, to $32.6 billion and $15.5 billion over the last 18 months. They also said that they do not expect to see any large greenfield expansion projects in that time.
"Since our IPO in 2011 and subsequent acquisition and integration of Xstrata, Glencore has never been so well positioned as it is today," said Ivan Glasenberg, the chief executive officer of Glencore, in a press release. ""As we look forward, increasingly favorable fundamentals provide the potential to create significant, long-term value for Glencore shareholders via our leading portfolio of well-capitalized tier-one assets and resilient marketing business, combined with significant, low-cost copper and zinc growth options and disciplined approach to supply."
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/.
