Mining and trader Glencore said on Friday that it expected its trading arm's 2021 EBIT (EBIT) to exceed its long-term guidance of $2.2 billion-$3.2 billion, but stuck to its production guidance.
Although production has fallen in some cases, high prices for coal and other commodities are helping miners, while price volatility provides trading opportunities.
Glencore reported that coal production fell 9 per cent in the first nine months of this year due to the suspension of production at its Prodeco mine in Colombia and a decline in domestic production in South Africa.
Gary Nagle, chief executive, said Glencore had recovered from market-driven production cuts in Australian coal assets last year due to improved demand and prices in the energy market.
Coal prices have soared to an all-time high this year because of tight supply.
As South African mines resumed growth after the Covid-19 blockade, ferrochrome production rose 65 per cent to 1071000 tonnes from a year earlier.
Glencore's own nickel production has fallen 13 per cent to 71100 tonnes so far this year due to planned maintenance at the Australian mine Murrin Murrin and operational problems at the Koniambo mine in New Caledonia.
Copper production fell 4 per cent to 895500 tonnes as a result of lower grades.
Cobalt production at the Glencore African mine jumped 11 per cent to 20900 tonnes of cobalt hydroxide, thanks to a contribution of 2100 tonnes from the Mutanda mine in the Democratic Republic of the Congo, which is being restarted.
