Glencore Cuts 2026 Copper Target but Sets up for Long-Term Surge

Wedoany.com Report-Dec.4, Glencore has outlined plans to increase annual copper production to approximately 1.6 million tonnes by 2035, with output expected to exceed 1 million tonnes per year by the end of 2028, positioning the company among the world's top five copper producers.

MARA links the Agua Rica deposit with Alumbrera's idle infrastructure in an integrated copper project.

Chief Executive Gary Nagle shared the strategy during the company's investor day in London, the first in three years. The announcement follows a period of declining copper volumes, with 2025 production forecast around 40% below 2018 levels. To improve efficiency, Glencore is conducting a comprehensive operational review targeting $1 billion in recurring annual cost savings by the end of 2025 and approximately 1,000 job reductions.

Copper prices reached a new record above $11,400 per tonne on Wednesday, supported by supply constraints and sustained demand linked to electrification and energy transition trends.

Key growth initiatives include the restart of the Alumbrera copper-gold mine in Catamarca Province, Argentina. Operations are scheduled to resume in the fourth quarter of 2026, with first production in the first half of 2028. Once fully operational, Alumbrera is projected to deliver around 75,000 tonnes of copper, 317,000 ounces of gold, and 1,000 tonnes of molybdenum annually over four years.

"These projects are mostly brownfield and expected to be highly capital efficient," Nagle said. He added that Glencore will seek partnerships on certain developments to manage financial and operational risks.

The Alumbrera restart also creates synergies for the adjacent Minera Agua Rica–Alumbrera (MARA) project by maintaining infrastructure, workforce skills, and logistics readiness.

In Chile, Glencore has adjusted its 2026 copper guidance downward to 810,000–870,000 tonnes from 930,000 tonnes due to operational challenges at the Collahuasi joint venture with Anglo American. Zinc and cobalt forecasts for next year were also revised lower.

Regarding potential future integration of Collahuasi with Teck Resources' nearby Quebrada Blanca mine, Nagle confirmed Glencore intends to retain an equal partnership interest. "We won't be a junior partner," he stated, noting the company could provide additional capital to maintain its stake in any combined entity.

The planned expansion and operational improvements reflect Glencore's focus on strengthening its copper portfolio through efficient brownfield development, strategic partnerships, and disciplined cost management while capitalising on favourable long-term market fundamentals for the metal.