- Australian coking coal production drops 12% on mine disruptions
- Non-coking coal output remains firm despite regional variations
Glencore recorded a substantial increase in coking coal production during the first half of 2025, reaching 15.7 million tonnes (mnt), compared to just 3.4 mnt in the same period last year.
This remarkable growth was primarily driven by the full integration of Elk Valley Resources (EVR), acquired in July 2024, which contributed 12.7 mnt to the total. The acquisition has strategically strengthened Glencore’s position in the high-quality metallurgical coal segment, a key input for global steel production.
Australian coking coal output hit by operational disruptions
Australian coking coal output amounted to 3 mnt, marking a 12% y-o-y decline. The shortfall was attributed to the temporary suspension of operations at the Oaky Creek mine following a water inrush. While this incident curtailed immediate production volumes, Glencore expects a recovery in output once the mine resumes full-scale operations.
Non-coking coal output holds steady with regional variations
Non-coking coal production totalled 48.3 mnt, remaining broadly consistent with H1CY’24 levels. Increased output from Australian mines offset the impact of voluntary production reductions at Cerrejón in Colombia. Australian thermal and semi-soft coal production rose by 6% y-o-y to 31.1 mnt, supported by higher production at Hunter Valley Operations (HVO) after a period of deferred stripping. This growth partially mitigated the effect of mine closures at Glendell and Integra in 2024, which together accounted for a reduction of 1.1 mnt.
South African thermal coal production records marginal growth
South African thermal coal production increased by 5% y-o-y to 8.3 mnt, benefiting from improved fleet performance at the Tweefontein operation and the commencement of additional stockpile reclamation activities.
Conversely, domestic sales volumes in South Africa declined by 23% y-o-y, reflecting softer local market conditions.
Cerrejon output curbed by strategic production cuts
Cerrejon’s production fell 11% y-o-y to 8.9 mnt. The decrease followed Glencore’s earlier decision, announced in March 2025, to implement a 5-10 mnt per annum cut in output, aimed at aligning production with market conditions and long-term sustainability objectives.
Outlook
Glencore’s integration of EVR supports its 2025 coking coal target of 30-35 mnt and non-coking coal forecast of 90-96 mnt, with Australia as a key supplier. Despite price volatility, its low-cost operations, diversified portfolio, and strategic management position the company to maintain competitiveness and meet long-term demand in both markets.
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