Argentina is set to become the next frontier for copper growth, according to Glencore CEO Gary Nagle. On Wednesday, Nagle emphasized this during Glencore’s half-year presentation. The London- and Johannesburg-listed mining giant outlined a growth pipeline capable of doubling its annual copper production to two million tonnes.
Glencore’s portfolio includes predominantly low-capital brownfield projects. These projects will be brought to market in a value-accretive manner, Nagle assured, despite reporting 33% lower half-year earnings of $6.3 billion before interest, taxes, depreciation, and arbitration (EBITDA) and a 9% increase in funds from operations.
The focus is particularly on two Argentinian projects: MARA in Catamarca province and El Pachon in San Juan province, near the Chilean border. The brownfield MARA project includes the Alumbrera processing plant and associated infrastructure.
“We’re investing approximately $400 million between 2024 and 2026, particularly in MARA and El Pachon,” Nagle stated. “Argentina looks like a very exciting jurisdiction to invest in. Our El Pachon greenfield project is enormous. We had to stop our drilling program because the more we drill, the more we find, and we don’t need to find any more.”
At the brownfield end, MARA is an extension of Glencore’s existing operations in Argentina. Its low capital intensity makes it likely to be the first to market. “We can bring on up to another million tons of copper and will do so over time as the market needs it,” Nagle emphasized.
Regarding coal, Nagle added, “Coal prices, particularly out of Newcastle, are looking very strong. The world continues to be hungry for energy as it decarbonizes. It needs that high-quality coal, and we provide that.”
Steelmaking coal is now a key part of Glencore’s business. “It’s a transition-enabling commodity critical for decarbonization infrastructure. Its supply-and-demand scenario looks very exciting, given the inability for major ramp-ups in supply. It’s not easily substituted in steelmaking,” Nagle highlighted.
Glencore also supplies key battery and decarbonization materials, including ferrochrome, vanadium, zinc, nickel, lead, cobalt, and manganese. “These are key inputs into decarbonization and industrialization. We’ve become a one-stop shop for our customers’ needs regarding these commodities.”
Glencore’s recycling business continues to grow. “We produce all the critical minerals from our recycling business. It sets us apart because we can provide those recycled materials. As we see a ramp-up in end-of-life batteries, especially from the electric vehicle industry, our recycling business is set to grow,” Nagle added.
The company describes itself as very cash-generative and expects a “very strong” second-half performance.
Glencore’s ambitious plans in Argentina and other projects underline its commitment to meeting global demand for essential resources while adapting to new energy needs. The focus on strategic investments and sustainable practices positions Glencore at the forefront of the mining industry’s future.
Source: Mining Weekly
