Glencore's Plan to Scale its Global Copper Supply

Glencore confirms a 1.6mt copper mining target by 2035 as it scales its logistics following the collapse of a US$260bn merger with Rio Tinto.

Glencore is moving forward with a revised strategy that prioritises the scaling of its copper production to meet shifting global demand.

The company, which operates a massive logistics and trading network, is targeting 1.6 million tonnes of copper production by 2035. This comes after the breakdown of talks over a US$260bn merger with fellow mining giant Rio Tinto, which would have been the largest deal in mining history.

The failed negotiations leave Glencore to focus on its independent growth, aiming for 1 million tonnes of copper by the end of 2028. This move is essential for supplying the burgeoning electric vehicle and renewable energy markets.

The firm's logistics and industrial operations demonstrated significant momentum in the latter half of 2025. Industrial adjusted EBITDA for the second half reached US$6.2bn, a 65% increase over the first half of the year.

This improvement was driven by higher metals prices and a substantial increase in production volumes, particularly in the copper division.

“2025 was a year of significant progress, marked by a strong operational performance, continued portfolio optimisation and clear momentum for our copper-led growth strategy,” - Gary Nagle, Glencore CEO.

Gary said that simplified operating structures have promoted greater accountability and more reliable delivery across the group.

Glencore, which was established in 1974 as a trading company, has operations in more than 30 countries and a workforce of about 140,000. It remains a unique player in the industry, combining a vast mining portfolio with one of the largest marketing and trading franchises in the world.

This dual structure allows the company to manage the entire supply chain, from extraction to final delivery to industrial consumers. While its coal business faces pressure from environmental groups, the company maintains that it is necessary for energy security in many regions.

Shareholders recently supported keeping the coal division due to its high profitability.

https://www.youtube.com/watch?v=EqULmTHeIKk

Enhanced recoveries and higher copper grades at operations such as Mutanda and Antapaccay were central to the production surge in late 2025.

The company also reached an agreement with Gécamines to secure land access at KCC, which is expected to enable cost improvements and life-of-mine extensions.

“Notably, H2 2025 copper production of over 500kt was almost 50% above H1 2025, primarily due to higher copper grades and recoveries,” said Gary.

He added that the company is on a pathway to become a leading global producer. These operational successes are critical for maintaining a steady flow of materials through the company's global logistics hubs.

Strategic disposals have been used to streamline the company’s supply chain, including the sale of the Pasar copper smelter in the Philippines and a coal terminal in Colombia.

These moves follow the acquisition of the Quechua copper project in Peru, which strengthens Glencore’s presence in key mining districts. “We continued to shape and optimise our portfolio... and simplification of our asset base through the disposals of our Pasar copper smelter,” said Gary.

He added that a non-binding agreement has been signed for a potential sale of a minority interest in DRC assets to a US-backed consortium. These changes are intended to focus resources on transition-enabling metals.

The company is positioning itself to support the energy needs of the present and the requirements of the future. With copper demand expected to rise as the world builds more renewable infrastructure, Glencore’s independent investment case rests on its ability to deliver these critical commodities.

Despite annual profits falling by 6% to US$13.5bn, the company is returning US$2bn to its shareholders.

Gary said: “We are uniquely positioned to support the energy needs of today whilst providing many of the transition-enabling commodities the world needs,” adding that the firm remains focused on de-risking its production growth options to support long-term value.

Sources: Supply Chain Digital/YouTube