Glencore has announced an ambitious plan to achieve cost savings of $1 billion across its industrial operations by the end of 2026. The mining and commodity trading giant revealed this strategy on Wednesday, alongside an update on its first-half production figures. This marks a significant step in the company’s efforts to bolster its financial performance amid evolving market conditions.
In addition to its cost-saving initiatives, Glencore has raised its long-term earnings guidance for the first time since 2017. The company is now projecting its Marketing Adjusted Earnings Before Interest and Tax (EBIT) to fall between $2.3 billion and $3.5 billion annually. This revision reflects an anticipated growth in its core metals and energy businesses, which include expansions into new markets and enhancements of existing products such as liquefied natural gas (LNG), alumina, steelmaking coal, and lithium.
The company expects to report approximately $1.35 billion in Marketing Adjusted EBIT for the first half of this year. This figure is bolstered by strong contributions from metals and minerals, although it is tempered by challenges in the energy market.
Cost Savings and Production Insights
Glencore’s review of its industrial asset portfolio has identified potential cost savings opportunities amounting to approximately $1 billion against a baseline from 2024. CEO Gary Nagle noted that these savings are expected to be fully realized by the end of 2026. Further details regarding this initiative will be disclosed next week when the company releases its half-year financial results.
Regarding production, Glencore reported a significant decline in its copper output, which totaled 343,900 tons for the first half of 2025. This represents a 26% drop compared to the same period last year, primarily attributed to lower head grades and recoveries at several major copper mines worldwide.
Conversely, the company saw a 19% increase in its own-sourced cobalt production, reaching 18,900 tons. This growth is largely due to improved cobalt grades and volumes at the Mutanda copper and cobalt site in the Democratic Republic of the Congo.
Glencore’s strategic focus on cost efficiency and market expansion comes on the heels of its decision to spin off its coal business, amid shareholder concerns about the valuation of a metals-only entity. The upcoming financial report is anticipated to provide deeper insights into Glencore’s operations and its ongoing efforts to enhance profitability in a rapidly changing market.
