Glencore Xstrata Reports Annual Production A Year After Merger

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A year after Glencore and Xstrata merged into one of the world’s largest commodity trading and mining company, the Anglo-Swiss London-listed firm reported today its first full year production.

Saved for zinc, production of every other natural resource that the FTSE 100 company mines was up.

“Marketing performance during the quarter, across all business segments, was strong and in line with our expectations,” Glencore Xstrata (LSE:GLEN) said in a statement.

Copper production was up 24 percent to 382,000 tonnes, while ferrochrome production reached 335 tonnes, up 29 percent.

Coal production still posted a four percent increase to 34.1 million tonnes, despite the 32-day strike at its Cerrejon mining venture with London-listed forms BHP Billion (LSE:BLT) and Anglo-American (LSE:AAL).

However, quarterly production of copper, gold, and zinc were down 10 percent, 12 percent, and 9 percent respectively, due to power issues affecting operations and commissioning of its Katanga mine in the Democratic Republic of Congo, processing of lower grade ores, as well the company’s own planned mine sequencing.

Three weeks ago, Glencore Xstrata agreed to sell its Las Bambas copper project to a consortium of Chinese companies at a value of US$5.85 billion in cash, plus capital expenditures incurred from the beginning of 2014 until the closing of the deal.

Oil production reached 7.4 million barrels, a surge of 48 percent net to the company, following the commencement of production from its Equatorial Guinea and Chad oil fields.

Back on 14 April 2014, Glencore Xstrata agreed to purchase Caracal Energy, the majority owner and operator of several oil production and exploration fields in Chad, where the former holds minority stakes.

The company also announced its US$900 million iron ore project in Mauritania has been approved and is scheduled for production early 2017.

Shares were slightly down by 0.2 percent to 318.50 pence, shortly after the market opened in London on Tuesday.

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