Singapore 04/11/2015 - Glencore has cut its zinc guidance for 2015 to 1.42-1.47 million tonnes, down 100,000 tonnes from its August guidance of 1.52-1.57 million tonnes, the mining giant said in its third quarter production report on Wednesday.
For lead, its 2015 output is expected at 285,000-310,000 tonnes, down 50,000 tonnes from its projection of 335,000-360,000 tonnes in August.
The company’s zinc production reached 1.127 million tonnes in the first nine months of the year, up 13 percent year-on-year due to the impact of expansion projects at Mount Isa and McArthur River. The production suspensions and reductions announced in October, however, will affect future reporting periods.
“Nevertheless, the ramp-ups achieved to date reflect the significant progress made in Australia and these sites are well positioned to bring back production as and when commercial conditions dictate,” it added.
Its lead output totalled 228,500 tonnes in January-September, up two percent year-on-year.
Glencore had said in October that it was curtailing 500,000 tonnes per year of mined zinc and 100,000 tonnes per year of mined lead production to preserve the value of its reserves in an environment of low zinc and lead prices. The production cut will be until such time that prices return to sustainable higher levels, it said on Wednesday.