By Alex MacDonald
LONDON--Commodities miner and trader Glencore Xstrata PLC
(GLEN.LN) reported mixed first-quarter production figures on
Tuesday, with copper and coal output up but zinc production down as
some of its mines reached the end of their operating lives.
Glencore, the world's fourth-largest diversified miner by market
capitalization, also said its marketing arm performed strongly and
"in line with our expectations," although it didn't provide further
details.
The company said its copper production rose 24% compared with
the first quarter last year, as it mined 382,000 metric tons from
its own concentrate. The increase was due to higher output from its
Congolese mines and improved performance from certain mines in
Latin America and Australia.
Among the diversified miners, Glencore Xstrata has the biggest
exposure to copper. It expects copper output growth from its
Congolese Katanga mine to accelerate with the completion of two
expansion projects this year.
"Glencore's African copper assets remain its strongest source of
high quality revenue growth going forward," said Paul Gait, an
analyst at Sanford C. Bernstein.
Glencore's production of coal, another key earnings driver, rose
4% to 34.1 million tons in the first quarter, buoyed by higher
output from the Colombian Cerrejon mine, which last year suffered
from a lengthy strike that dented output.
But zinc output, fell 18% on year to 306,000 tons in the first
quarter due to the closure of its North American Perseverance and
Brunswick mines in June 2013.
Glencore also said Tuesday it had approved the construction of
the Askaf North iron-ore project in Mauritania, marking the
company's first attempt to develop its own iron-ore production. The
7 million-ton-a-year project is forecast to cost $0.9 billion to
build with first production expected in early 2017.
Write to Alex MacDonald at alex.macdonald@wsj.com
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