Glencore cuts next year's copper goal, targets 1.6 million tons by 2035

By Clara Denina and Pratima Desai

LONDON, Dec 3 (Reuters) - Glencore GLEN.L cut its 2026 copper production guidance on Wednesday, but said it aims to reach 1.6 million metric tons by 2035 through new and restarted mines and streamlined operations.

"We're going to spend quite a bit of time on copper ... Rebasing back up to a million tons of base copper production, as we were a few years ago, and then the growth beyond that," CEO Gary Nagle told shareholders in London at Glencore's first investor day in three years.

The company also said about 1,000 roles were being eliminated in its new structure, after saying in July it would review its industrial assets to save $1 billion in costs by the end of 2026.

It divested or closed 35 assets since 2021, raising $6.5 billion.

LOWER ORE GRADE, WATER CONSTRAINTS AT MINE

Shares in Glencore rose to their highest level since January 24 following Wednesday's announcement.

Glencore's overall 2025 production outlook for copper, a metal needed for the energy transition, was between 850,000 and 875,000 tons. On Wednesday, it guided to a range with a midpoint of 840,000 tons for 2026, down from 930,000 previously, partly due to lower ore grade and water constraints at its part-owned Chilean mine Collahuasi.

But the number is expected to rise by 2035 through a combination of large-scale brownfield expansion and greenfield developments.

Collahuasi will contribute with a new concentrator and stockpile leaching that will add substantial volumes, it said.

Glencore's major greenfield copper expansion is El Pachón in Argentina, a large-scale development that it hopes will underpin its long-term growth. It expects to invest $8.5 billion to $10.5 billion in the asset, which could start production in 2034.

Copper is critical for power, construction and the green energy transition, with mining companies competing aggressively to expand their exposure through organic growth and M&A.

"Glencore has historically been an M&A machine with high leverage to changes in commodity prices but also with a track record of operational disappointments," Jefferies analysts said.

"The story is evolving, however, as the company is shifting to an organic growth agenda that is centered around growing copper production ... The pressure is on for Glencore to deliver," they added.

Glencore is in talks with Brazilian miner Vale's VALE3.SA base metals unit over a copper joint venture in Canada's Sudbury Basin that could yield around 900,000 tons of the metal over 21 years. A final decision is due in the first half of 2027.