In Q1 2025, Glencore’s coal production declined by 10% q-o-q, reaching a total of 31.7 million tonnes (mnt). This comprised 23.4 mnt of energy coal and 8.3 mnt of steelmaking coal.
Despite this drop, the company reported a 19% increase in production compared to the same period in 2024, highlighting some resilience in certain segments.
Steelmaking coal boost from Australian operations
Glencore’s Australian steelmaking coal production saw a strong 21% y-o-y increase, reaching 1.7 mnt. Interestingly, steelmaking coal production from Canada also contributed to 6.6 mnt in Q1CY’25. The growth was driven by the return to normal operations at the Oaky Creek mine in Australia, which had been disrupted by a longwall move in Q1 2024.
This recovery in steelmaking coal production is a key strength for the company, reinforcing its position in the global steel sector.
Energy coal decline due to mine closures
On the energy coal front, production fell to 23.4 mnt, marking a 7% y-o-y drop. The reduction was largely the result of the closure of the Glendell and Integra mines in March and June of 2024.
The Australian thermal and semi-soft coal sectors also saw a significant 11% decline, with output slipping to 14.2 mnt. These closures and declines in Australian production weighed heavily on Glencore’s overall energy coal results.
Performance in South Africa and Colombia
South Africa: Thermal coal production in South Africa rose by 5%, reaching 4.2 mnt. This improvement was attributed to enhanced fleet availability and ongoing stockpile recovery operations, which helped boost output in the region.
Colombia: At Glencore’s Cerrejón mine in Colombia, production dropped by 6% to 5 mnt. The company also announced plans to reduce annual output by 5-10 mnt starting in March 2025, as part of a broader strategy to rebalance the global coal market.
Revised production guidance
Glencore has revised its 2025 production guidance, maintaining its expectations for steelmaking coal output while adjusting its forecast for energy coal. The company continues to project steelmaking coal production in the range of 9.2-10 mnt, in line with previous guidance.
However, Glencore has lowered its energy coal production forecast by 5%, now expecting output to fall between 87-95 mnt. This reduction stems from several factors, including decreased production from the Cerrejón mine in Colombia, which will see a planned cutback as part of Glencore’s strategy to help balance global coal market supply and demand.
Outlook: Strategic adaptation
Despite a 10% decline in Q1 2025 coal production, Glencore’s strategy focuses on long-term stability. Energy coal faces short-term challenges, but strong steelmaking coal performance remains a strength.
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