Diversified commodities major Glencore is positioning itself for copper production growth in the coming years, with CEO Gary Nagle stating that the company is on a clear path to return to producing one-million tonnes a year of the metal by 2028.

The group is also exploring projects that could potentially add another one-million tonnes a year to its copper output, he said in the firm’s newly released 2024 annual report.

Glencore reported last month that copper production fell below the one-million-tonne mark last year, dropping to 951 600 t.

Nagle outlined Glencore’s ongoing initiatives to expand its copper production, alongside efforts to maintain its recently-enlarged steelmaking coal business.

He stated the company was advancing and refining its series of organic copper growth options that could increase copper output by an additional one-million tonnes a year. These projects would come at a weighted average capital intensity of about $15 000/t to $20 000/t of copper-equivalent.

“Subject to a supportive copper market and specific country and other investment considerations, we intend to progress the most advanced ‘shovel-worthy’ projects towards feasibility conclusion and a final investment decision,” he said.

Looking ahead, Nagle described Glencore’s position as an “inflection point” in its production growth trajectory. The company was on a “clear pathway back to around one-million tonnes of copper by 2028”, and expected a “step change” in its steelmaking coal business.

Last year, Glencore acquired Teck Resources’ Elk Valley Resources steelmaking coal business in Canada, and earlier this year announced that it would retain its coal and carbon steel materials business.

While acknowledging the increased uncertainty around the impact of geopolitical factors, Nagle said Glencore was of the view that in certain commodities, the scale and pace of global mine project development would struggle to meet demand for the materials needed in the future.

“We are well placed to participate in bridging this gap, through the flexibility embedded in both our marketing and industrial businesses to respond to global needs,” he stated.