Mining giant, Glencore’s third quarter results are out and company’s coal production has been recorded at 83.5 mn t in first nine months of 2020, down by 20.5 mn t against same period last year (104 mn t).
This fall has been been attributed by the company to Prodeco mine being on care and maintenance for most of 2020, disruptions at Cerrejón (initially Covid-related, and lately due to industrial action), and targeted H2 volume reductions across the Australian portfolio, during weak market conditions.
Glencore’s coal production
| Coal | Jan-Sep’19 | Jan-Sep’20 | % Change |
| Thermal coal | 92.8 | 74.3 | -20 |
| Coking coal | 6.1 | 5.6 | -8 |
| Semi-soft | 5.1 | 3.6 | -29 |
| Total | 104 | 83.5 | -20 |
Qty in mn t
Glencore lowers production guidance
The company has lowered its 2020 coal production from 114 mn t earlier to 109 mn t amid the ongoing strike at Cerrejon mine since last two months.
Operations at the Cerrejón coal mine, jointly owned by Glencore, BHP and Anglo American, came to a halt on 31 August when Sintarcarbón launched a strike, after rejecting a shift change that would add 72 working days per year with no wage increase.
Thermal coal, used in power plants, has been one of the hardest-hit commodities this year as the global slowdown reduced usage. In Europe, the fuel is also increasingly being displaced by cheaper and cleaner gas.
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